Emerging Markets: Asian FX, stocks firm as investors await U.S. inflation data

CapitaLand Ascendas REIT

09/02/2022 08:16

* Thai baht eases after cenbank holds rates
    * Malaysia Q4 GDP due on Feb 11
    * Thai, Malaysia stocks dominate, up over 1% each

    By Savyata  Mishra
    Feb 9 (Reuters) - The baht eased slightly after Bank of
Thailand decided to keep interest rates unchanged to support the
pandemic-battered economy, while most other Asian currencies
firmed ahead of key U.S. inflation data.
    Investors are expected to scour U.S. inflation data out
later this week for any clues on the pace of Fed's policy
tightening.
    The baht  THB=TH  pared early gains to end the day 0.12%
weaker after the Bank of Thailand, as expected, left its key
interest rate unchanged at a record low and said it will closely
monitor the "highly volatile" baht movement.
    Bank of America securities analysts said in a note that the
Thai central bank could find maintaining an accommodative
monetary policy too "binding" as inflationary pressures build.
    Indonesia's rupiah  IDR=  firmed 0.24%, its sharpest gain
since Jan 10, as it well outperformed its peers in the region.
    The country's finance minister said on Wednesday that fiscal
stimulus should be tapered as the economy recovers from the
pandemic, signalling authorities will stick with their fiscal
consolidation plans.  urn:newsml:reuters.com:*:nL1N2UK08M 
    "While higher U.S. real yields will likely limit any USD
weakness, we continue to think Asian currencies will remain
relatively resilient compared to other G10 and EM currencies,"
Mitul Kotecha, a senior strategist with TD Securities said. 
    The benchmark U.S. Treasury yield on the 10-year note
reached 1.97%, its highest since Nov. 7, 2019, as investors
await inflation data on Thursday.  urn:newsml:reuters.com:*:nL1N2UJ26W
    Meanwhile, South Korean shares  .KS11  rose about 1%, helped
by a tech rally on Wall Street aiding risk appetite. urn:newsml:reuters.com:*:nL1N2UK02U
    Other Asian equities also climbed, tracking an upbeat finish
on the Wall Street overnight.  .N 
    Thai stocks  .SETI  led gains, up 1.4%, its highest levels
since Aug. 2019.
    Malaysia shares  .KLSE  followed, advancing 1.3% after a
Reuters poll showed the country's economy likely bounced back to
growth in the final quarter of 2021, propelled by strong exports
and private investments.  urn:newsml:reuters.com:*:nL4N2UI1U4
    Jakarta stocks  .JKSE  were up 0.5% and while South Korea
 .KS11  was 0.8% higher.

    
    Highlights:
    ** Indonesian 10-year benchmark yields are up 0.90 basis
points at 6.51%​​
    ** Top gainers on the Thailand's SETI  .SETI  include TWZ
Corporation PCL  TWZ.BK  up 10%, Thai Capital Corporation PCL
 TCC.BK  up 8.93%, Lalin Property PCL  LALIN.BK  up ​5.56%
    ** Straits Times index  .STI  up 0.3%; Capitaland Investment
Ltd  CAPN.SI , Ascendas Real Estate Investment Trust  AEMN.SI 
lead gains     
  Asia stock indexes and currencies                       
 at   0849 GMT                                      
 COUNTRY   FX RIC          FX     FX  INDE  STOCKS  STOCKS
                      DAILY %  YTD %     X   DAILY   YTD %
                                                 %  
 Japan      JPY=        +0.06  -0.34  <.N2   -1.1    -4.2
                                      25>           
 China                               EC>           
 India      INR=IN      -0.09  -0.64  <.NS    0.91    0.40
                                      EI>           
 Indonesi   IDR=        +0.21  -0.77  <.JK    0.47    3.65
 a                                    SE>           
 Malaysia   MYR=        -0.02  -0.48  <.KL    1.04   -1.37
                                      SE>           
 Philippi   PHP=        +0.18  -0.68  <.PS    0.59    5.33
 nes                                  I>            
 S.Korea                             11>           
 Singapor   SGD=        +0.10  +0.40  <.ST    0.37    9.31
 e                                    I>            
 Taiwan     TWD=TP      +0.08  -0.45  <.TW    1.03   -0.37
                                      II>           
 Thailand   THB=TH      +0.09  +1.52  <.SE    1.29    2.91
                                      TI>           
 
    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Graphic: World FX rates     https://tmsnrt.rs/2RBWI5E
Asian stock markets    https://tmsnrt.rs/2zpUAr4
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Savyata Mishra and Indranil Sarkar in Bengaluru;
Editing by Simon Cameron-Moore)
 ((Savyata.Mishra@thomsonreuters.com;))