South Korean shares fall 1.1%
Philippine stocks 1% lower after GDP
Malaysia rate decision due later on Thursday
By Ayushman Ojha
May 9 (Reuters) –Asian currencies were largely muted on a firmer dollar, and most regional stocks slipped as investors cautiously awaited US inflation data for clues to the Fed’s rate outlook, while the focus in Malaysia turned to a key rate decision due on Thursday.
The South Korean won KRW=KFTC fell 0.5%, and the Taiwan dollar TWD=TP inches 0.1% lower.
The Malaysian ringgit MYR= was flat ahead of the central bank’s decision, with Bank Negara Malaysia (BNM) expected to leave its key rate at 3.00%, and keep it unchanged until at least 2026, a Reuters poll showed.
“BNM is likely to hold policy rate at 3% today. However, we do not rule out the chance of a rate hike, given that we see upside risk to inflation,” said Lloyd Chan, a senior currency analyst at MUFG Bank.
“I think they would lean towards more of a hawkish side on the pickup in growth that we see in the first quarter and the upside risk to inflation going forward.”
Indonesia’s financial markets were shut for a public holiday. On Tuesday, its central bank governor said a further rate hike was probably not needed as last month’s increase drew capital inflows and stabilized the rupiah amid a better-than-expected global backdrop.
The rupiah IDR= has lost nearly 4% this year, while the ringgit MYR= has depreciated 3.2% in 2024.
Other regional currencies, such as the Singapore dollar SGD= and the Philippine peso PHP=were largely unchanged.
Most stocks in the emerging Asia region were lower as investors awaited next Wednesday’s US consumer inflation data for April to get more clues to the Federal Reserve’s stance on rate cut timings, after a dovish signal from last week’s softer-than-expected jobs data.
Stocks in South Korea .KS11 fell as much as 1.1%, while Philippine shares lost 1% after data showed the economy accelerated less than expected in the first quarter.
Malaysian shares .KLSE were down 0.3% ahead of the rate decision, while Taiwan shares .TWII inches down 0.1%.
Bucking the regional trend, Thailand stocks .SETI rose as much as 0.5%, while Singapore stocks .STI added 0.1%.
HIGHLIGHTS:
** Chinas exports and imports return to growth, signaling demand recovery
** India inflation likely slipped in April
**BOJ’s board turned hawkish in April, steady rate hikes now in view
| #NAME? | ||||||
| COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
| Japan | JPY= | -0.06 | -9.33 | .N225 | 0.40 | 14.62 |
| China | CNY=CFXS | -0.01 | -1.75 | .SSEC | 0.91 | 6.12 |
| India | INR=IN | +0.10 | -0.28 | .NSEI | -0.23 | 2.39 |
| Indonesia | IDR= | – | -4.02 | .JKSE | – | -2.53 |
| Malaysia | MYR= | +0.00 | -3.16 | .KLSE | -0.30 | 9.99 |
| Philippines | PHP= | +0.12 | -3.34 | .PSI | -1.04 | 2.17 |
| S. Korea | KRW=KFTC | -0.45 | -5.83 | .KS11 | -0.91 | 2.44 |
| Singapore | SGD= | +0.05 | -2.63 | .STI | 0.05 | 0.79 |
| Taiwan | TWD=TP | -0.10 | -5.25 | .TWII | -0.10 | 15.33 |
| Thailand | THB=TH | +0.11 | -7.37 | .SETI | 0.34 | -2.67 |
Reporting by Ayushman Ojha in Bengaluru; Editing by Clarence Fernandez
Tags: Asian muted firm dollar stocks fall Malaysia rate decision awaited
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