Asian FX subdued, stocks fall ahead of close-run US election, jobs data
Ringgit set for fifth straight week of falls
Indonesia October core inflation rises
Singapore stocks hit lowest level since Sept. 11
By Adwitiya Srivastava and Ayushman Ojha
Nov 1 (Reuters) -Trading was cautious in most Asian currencies on Friday, while equities fell, ahead of a closely contested U.S. election and a jobs report due later in the day for a view on the outlook for rates before the Federal Reserve meets next week.
Republican candidate Donald Trump and Democratic Vice President Kamala Harris remain neck and neck in several polls, but some investors have been positioning for a Trump win, which has lifted the dollar and U.S. Treasury yields and, in turn, pressured Asian currencies.
"A victory for Trump would likely hurt the outlook for Asian economies and FX via lower trade and investment, as well as the Fed potentially slowing the pace of rate cuts due to the inflationary consequences of Trump’s proposed economic policies (tariffs plus wider fiscal deficits)," analysts at MUFG wrote.
The Indonesian rupiah IDR= and Singapore dollar SGD= fell 0.2% each, while the Malaysian ringgit MYR= slipped 0.1% and was headed for its fifth straight weekly fall, its longest falling streak in a year.
Investors were awaiting U.S. non-farm payrolls data due later in the day, a crucial metric to see how well the economy is performing ahead of the Fed's monetary policy meeting next week, for which a 25-basis-point cut is priced in.
The Fed is expected to further ease rates with two more quarter-percentage point reductions by end-year, providing some leeway to Asian central banks to cut rates. However, most Asian central banks will ease more slowly than the Fed over the coming year as their inflation remains broadly within targets and growth is still resilient, a Reuters poll showed.
Last month, the Bank of Korea, Bank of Thailand and Bank Indonesia cut rates by 25 basis points while the Philippine central bank reduced them by 50 basis points.
In stock markets, the broader MSCI index of international emerging markets equities .MSCIEF was at a more than one-month low in line with rest of Asia as Microsoft and Meta Platforms fell overnight after highlighting that growing artificial intelligence costs could hit their earnings.
Stocks in Taiwan .TWII fell as much as 2.6%, and were last down 0.5%, while South Korean shares .KS11 dipped as much as 0.8%.
Shares in Jakarta .JKSE were down 0.7% to their lowest level since October 11. The country reported its inflation data for October, which showed core inflation had risen to its highest in over a year.
Elsewhere, stocks in Singapore .STI dropped as much as 1% to hit their lowest level since Sept. 11, while financial markets in Philippines were closed for a public holiday.
HIGHLIGHTS:
** China's Oct factory activity returns to expansion, Caixin PMI shows
** Japan's factory declines accelerate as demand sags, PMI shows
Asian stocks and currencies as at 0502 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | -0.30 | -7.50 | .N225 | -2.27 | 14.14 |
China | CNY=CFXS | -0.07 | -0.35 | .SSEC | 0.60 | 10.91 |
India | INR=IN | +0.00 | -1.03 | .NSEI | -100.00 | -100.00 |
Indonesia | IDR= | -0.24 | -2.12 | .JKSE | -0.73 | 3.39 |
Malaysia | MYR= | -0.09 | +4.82 | .KLSE | -0.02 | 10.10 |
Philippines | PHP= | - | -5.03 | .PSI | - | 10.74 |
S.Korea | KRW=KFTC | -0.20 | -6.65 | .KS11 | -0.13 | -3.85 |
Singapore | SGD= | -0.27 | -0.31 | .STI | -0.29 | 9.52 |
Taiwan | TWD=TP | +0.18 | -3.88 | .TWII | -0.49 | 26.64 |
Thailand | THB=TH | -0.24 | +0.93 | .SETI | -0.15 | 3.39 |
Reporting by Adwitiya Srivastava in Bengaluru; Editing by Sonali Paul
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Penafian: Entiti XM Group menyediakan perkhidmatan pelaksanaan sahaja dan akses ke Kemudahan Dagangan Atas Talian, yang membolehkan sesorang melihat dan/atau menggunakan kandungan yang ada di dalam atau melalui laman web, tidak bertujuan untuk mengubah atau memperluas, juga tidak mengubah atau mengembangkannya. Akses dan penggunaan tersebut tertakluk kepada: (i) Terma dan Syarat; (ii) Amaran Risiko; dan Penafian Penuh. Oleh itu, kandungan sedemikian disediakan tidak lebih dari sekadar maklumat umum. Terutamanya, perlu diketahui bahawa kandungan Kemudahan Dagangan Atas Talian bukan permintaan, atau tawaran untuk melakukan transaksi dalam pasaran kewangan. Berdagang dalam mana-mana pasaran kewangan melibatkan tahap risiko yang besar terhadap modal anda.
Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.
