Most Asian equities jump, currencies weaken ahead of cenbank meetings
Indonesia’s rupiah biggest laggard in the region
Philippine stocks up 1.1%
Investors focus on central bank policy meetings across regions
Updates at 0645 GMT
By Echha Jain
March 18 (Reuters) –Most Asian stocks rose on Monday while currencies weakened against the greenback, led by Indonesia’s rupiah, as investor attention turns toward central bank meetings due this week that could stimulate volatility in currency markets.
Stocks in Manila .PSI were up 1.1%, followed by equities in Taipei .TWII, which gained 1%.
On the other hand, the rupiah IDR= depreciated 0.6% against the U.S. dollar. Malaysia’s ringgit MYR= followed suit with a 0.3% dip. The ringgit, which declined to a 26-year low last month, has slipped about 2.7% so far this year.
Central bank officials in the U.S., Japan, Taiwan, Indonesia, Turkey, Brazil and Mexico, among others, will hold policy meetings this week, and most are likely to keep interest rates on hold – except the Bank of Japan, which is widely expected to end its eight-year-old negative interest rate policy.
Markets are almost sure the U.S. Federal Reserve will stand pat at its meeting on March 20 with the CME FedWatch tool showing a 99.0% certainty. As at 0645 GMT, the tool showed nearly 56% chance of a rate cut in June.
“However, markets are kept on their toes for any surprises around central banks’ policy guidance or pushback against the scale of rate cuts, especially with commodity prices on the rise and the last leg of the inflation fight proving to be sticky,” IG market analyst Yeap Jun Rong said.
Back in Asia, the yuan CNY=CFXS was flat while Shanghai stocks .SSEC jumped 0.8% after data showed China’s factory output and retail sales beat market expectations over January-February.
“The lop-sidedness of the Chinese economy means that investment continues to be skewed towards manufacturing rather than real estate,” said Natixis senior economist Trinh Nguyen.
Thailand’s baht THB=TH slipped 0.2%, whereas Bangkok stocks .SETI were up 0.3%.
The South Korean won KRW=KFTC slipped 0.2% while the Philippine peso PHP= was flat.
Elsewhere, Russia’s rouble RUB= appreciated 0.3% a day after President Vladimir Putin won a record post-Soviet landslide in Russia’s election on Sunday, cementing his already tight grip on power.
HIGHLIGHTS:
** Singapore’s February exports fall 0.1% y/y, missing market estimates
** Bank Indonesia to hold rates on Wednesday and wait for Fed cut – Reuters Poll
** China Feb new bank loans dip more than expected, lending growth at record low
** Malaysia’s February exports fall 0.8% y/y, missing market estimates
|
Asia stock indexes and currencies at 0645 GMT |
||||||
|
COUNTRY |
FX RIC |
FX DAILY % |
FX YTD % |
INDEX |
STOCKS DAILY % |
STOCKS YTD % |
|
Japan |
JPY= |
-0.11 |
-5.45 |
.N225 |
2.67 |
18.76 |
|
China |
CNY=CFXS |
-0.02 |
-1.39 |
.SSEC |
0.75 |
3.45 |
|
India |
INR=IN |
-0.02 |
+0.38 |
.NSEI |
-0.18 |
1.16 |
|
Indonesia |
IDR= |
-0.61 |
-1.85 |
.JKSE |
0.11 |
0.87 |
|
Malaysia |
MYR= |
-0.34 |
-2.71 |
.KLSE |
0.20 |
6.96 |
|
Philippines |
PHP= |
+0.02 |
-0.24 |
.PSI |
1.09 |
6.93 |
|
S.Korea |
KRW=KFTC |
-0.24 |
-3.43 |
.KS11 |
0.71 |
1.15 |
|
Singapore |
SGD= |
-0.02 |
-1.40 |
.STI |
-0.10 |
-2.17 |
|
Taiwan |
TWD=TP |
-0.20 |
-2.91 |
.TWII |
1.00 |
10.87 |
|
Thailand |
THB=TH |
-0.19 |
-4.97 |
.SETI |
0.25 |
-1.86 |
Reporting by Echha Jain in Bengaluru; Editing by Christopher Cushing and Sherry Jacob-Phillips
