Moringa Capsules

Asian FX resist dollar strength, Thai stocks hit over 2-year high - Reuters

Register now for FREE unlimited access to reuters.com
  • Thai stocks hit more than 2-year high
  • Singapore posts better-than-expected Q3 GDP
  • Bank of Korea's rate decision expected on Thursday

Nov 24 (Reuters) - Emerging market currencies in Asia were resilient on Wednesday, even as rate-hike bets strengthened the U.S dollar, while Thai stocks rose after the country's finance minister said that the monetary policy must stay accommodative to aid fiscal policy.

The yuan , Philippine peso , Taiwanese dollar and South Korean won firmed 0.1%-0.3%.

"The pressure on Asian currencies is far more limited than what you would have expected given the bounce in the dollar," said Mitul Kotecha, EM Strategist at TD Securities.

Register now for FREE unlimited access to reuters.com

"One of the reasons that Asian currencies have been well supported is the anchor provided by the yuan."

Traders said a burgeoning trade surplus, fuelled by strong export growth and year-end seasonal demand has helped the yuan resist the broad dollar strength.

In Thailand, finance minister Arkhom Termpittayapaisith told a business seminar future government measures will be for easing the pandemic's impact and Thailand must shift to focusing on the domestic economy. read more

Stocks (.SETI) in the country hit their highest since September 2019, while the baht — the region's worst performing currency this year — fell 0.6% to lead losses.

Poon Panichpibool, a market strategist at Krung Thai Bank said that a weaker baht has helped export-oriented sectors in the country's equity market to rally.

Stocks in Singapore (.STI) edged higher, while it's dollar was largely unchanged.

Singapore's gross domestic product grew 7.1% year-on-year in the third quarter, the Ministry of Trade and Industry said, higher than the 6.5% growth seen in the government's advance estimate. read more

In Jakarta, the benchmark index (.JKSE) inched higher, while South Korean shares (.KS11) were down 0.1%, a day ahead of the country's central bank rate decision.

Indonesian central bank's governor has said Bank Indonesia plans to reduce the amount of excess liquidity in the banking system next year without disrupting lending, but will keep interest rates low until it sees signs of inflation rising. read more

Meanwhile, all but one of 30 economists in a Reuters poll predicted that the Bank of Korea would raise its base interest rate (KROCRT=ECI) by 25 basis points to 1.00%, with the dissenter anticipating a larger hike. read more

HIGHLIGHTS

** Top gainer on Thailand's SETI (.SETI) was Advanced Connection Corporation PCL (ACC.BK), up 23.53%

** Indonesian 10-year benchmark yields up 0.5 basis points at 6.183%

** Investors await minutes of the Fed's policy committee's November meeting, to be published later in the day

Register now for FREE unlimited access to reuters.com

Asia stock indexes and currencies at 0642 GMT

COUNTRY

FX RIC

FX DAILY %

FX YTD %

INDEX

STOCKS DAILY %

STOCKS YTD %

Japan

+0.13

-10.20

(.N225)

-1.58

Moringa Capsules

6.77

China

+0.06

+2.19

(.SSEC)

0.13

3.47

India

+0.03

-1.80

(.NSEI)

0.35

25.62

Indonesia

-0.08

-1.59

(.JKSE)

0.12

11.82

Malaysia

-0.24

-4.44

(.KLSE)

0.04

-6.38

Philippines

+0.28

-4.80

(.PSI)

0.24

3.91

S.Korea

+0.27

-8.45

(.KS11)

-0.10

4.20

Singapore

+0.00

-3.23

(.STI)

0.24

13.76

Taiwan

+0.07

+2.50

(.TWII)

-0.13

19.75

Thailand

-0.63

-10.00

(.SETI)

0.58

14.25

Reporting by Harish Sridharan in Bengaluru; editing by Uttaresh.V

Our Standards: The Thomson Reuters Trust Principles.