Asian stocks decline, currencies steady ahead of data deluge
Singapore stocks fall as much as 1%
South Korean shares skid up to 1.4%
Indonesia, Thailand Feb CPI data due on Friday
India fourth-quarter GDP data due on Thursday
.
By Ayushman Ojha
Feb 26 (Reuters) –Asian stocks lost ground on Monday while currencies held largely steady ahead of an array of data this week that will help refine expectations for future rate moves by central banks.
Stocks in Singapore .STI dropped as much as 1% to hit their lowest since Feb. 15, while Indonesian stocks .JKSE lost up to 0.6%.
Philippine shares .PSI gave up early gains to trade 0.3% lower, while shares in Kuala Lumpur .KLSE lost as much as 0.3%.
In South Korea, shares .KS11 fell as much as 1.4%, despite the financial regulator’s effort to reduce the “Korea discount” on the country’s stock prices via reform measures for listed companies with lower valuations to boost shareholder returns.
Currencies in the region were subdued ahead of a week packed with key economic releases from the United States, China, Indonesia and Thailand.
“Markets will focus on any further signs of pick-up in economic activity and price pressures out of the United States, but just as importantly, whether economic activity stabilises in China,” analysts at MUFG wrote.
The U.S. core personal consumption expenditures (PCE) price index – the Federal Reserve’s preferred measure of inflation – is due on Thursday, where expectations are for a 0.4% increase on a monthly basis.
“The U.S. would see the PCE Core, GDP, personal spending and ISM manufacturing out – all data that can potentially lift the greenback if they come out too strongly, though the opposite can happen if they weaken,” analysts at Maybank said in a note.
In Asia, February inflation data from Indonesia and Thailand are due on Friday. Last week, data from Malaysia and Singapore showed that inflation accelerated less than expected in January.
Easing inflation has given central banks some breathing room but investor focus remains on the timing of rate cuts. The central banks of Indonesia and South Korea left their policy rates unchanged last week.
The Indonesian rupiah IDR= and the Philippine peso PHP= weakened 0.3% each, while the Singapore dollar SGD= inched 0.1% lower.
Markets are closely watching the Malaysian ringgit MYR=, which last week traded at lows not seen since the Asian financial crisis, as outflows, foreign currency hoarding and a strong dollar pile on pressure.
The country’s prime minister had said last week that the fall was concerning but strong fundamentals underpinned a promising outlook for the economy.
The ringgit was flat at 4.775 per U.S. dollar on Monday.
Focus will also be on India’s fourth-quarter GDP data, due on Thursday, and China’s February purchasing manager’s index (PMI) numbers to be released on Friday.
The markets in Thailand .SETI were closed for a public holiday.
HIGHLIGHTS:
** Indonesia sees 2025 annual GDP growth at 5.3%-5.6%, says planning minister
** Philippines sells record $10.46 bln from retail T-bonds
** China stocks set to snap nine-session winning run, HK shares also down
|
Asia stock indexes and currencies at 0735 GMT |
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|
COUNTRY |
FX RIC |
FX DAILY % |
FX YTD % |
INDEX |
STOCKS DAILY % |
STOCKS YTD % |
|
Japan |
JPY= |
+0.08 |
-6.20 |
.N225 |
0.35 |
17.24 |
|
China |
CNY=CFXS |
-0.03 |
-1.39 |
.SSEC |
-0.93 |
0.07 |
|
India |
INR=IN |
+0.08 |
+0.40 |
.NSEI |
-0.51 |
1.69 |
|
Indonesia |
IDR= |
-0.26 |
-1.50 |
.JKSE |
-0.19 |
0.11 |
|
Malaysia |
MYR= |
+0.00 |
-3.87 |
.KLSE |
-0.14 |
6.34 |
|
Philippines |
PHP= |
-0.23 |
-1.13 |
.PSI |
-0.31 |
6.84 |
|
S.Korea |
KRW=KFTC |
-0.01 |
-3.24 |
.KS11 |
-0.77 |
-0.31 |
|
Singapore |
SGD= |
-0.07 |
-1.87 |
.STI |
-0.79 |
-2.49 |
|
Taiwan |
TWD=TP |
+0.02 |
-2.58 |
.TWII |
0.31 |
5.67 |
|
Thailand |
THB=TH |
– |
-4.83 |
.SETI |
– |
-1.25 |
Reporting by Ayushman Ojha in Bengaluru; Editing by Jacqueline Wong and Subhranshu Sahu
