Asian stocks, FX subdued as geopolitical risks rise
U.S. dollar firm on Middle East tensions
Asian currencies edge lower
Indonesia, Malaysia stocks down 1%
By Roushni Nair
Oct 2 (Reuters) -Emerging Asian stocks and currencies were largely subdued on Wednesday after Iran's ballistic missile strike on Israel provoked fears of a wider regional conflict and led investors to flee to safe-haven assets, including the U.S. dollar.
The Japanese yen JPY= and the Indonesian rupiah IDR= declined over 0.3%, each. Equities in Jakarta .JKSE and Seoul .KS11 dipped 0.7% and 0.2%, respectively.
In response to Israel's actions against Tehran's Hezbollah allies in Lebanon, Iran launched a series of ballistic missiles at Israel, who in turn promised a "severe retaliation" against its adversary.
Escalating geopolitical conflicts can trigger swift downturns in markets, especially in risk-prone emerging markets, while traditionally safe assets such as gold and Treasuries often see an influx of investments.
Meanwhile, Indonesia's inflation rate in September recorded its slowest increase in almost three years, providing the country's central bank with more room to execute rate cuts.
The rupiah, which has gained more than 1% this year, rose by 0.6% during the quarter ended September, enough to completely offset its prior losses from the previous quarter, when it fell nearly 8%.
Investors are now awaiting inflation figures from the Philippines on Friday, expecting it to determine the pace of future interest rate cuts by the Bangko Sentral ng Pilipinas (BSP).
As inflation is forecast to continue its downward trend, market expectations are mounting the BSP could further lower rates at its two remaining policy meetings this year, in October and December.
Among other regional currencies, the Malaysian ringgit MYR= and the Philippine peso PHP= were largely flat, last up 0.1% each. The Thai baht THB=TH was down 0.2%, after slipping from early 2022 highs in the previous session.
In the United States, Fed Chair Jerome Powell countered expectations of drastic easing measures, projecting that the central bank would likely continue with quarter-percentage-point rate cuts in the future.
That led to a 0.5% gain in the U.S. dollar index =USD overnight to 101.2, its largest rise since Sept. 25, which was also helped by a stronger-than-expected reading on U.S. job openings. USD/
"Our view is that Asian currencies will broadly rise gradually, as we anticipate the U.S. employment rate will not go up significantly and as China's stimulus impacts on markets will remain positive," Ryota ABE, an economist at SMBC said.
Following China's weekend stimulus measures, Shanghai .SSEC shares had their strongest trading day in 16 years on Monday, as global investors flocked to invest in previously downtrodden Chinese stocks.
Financial markets in Taipei were shut ahead of the arrival of a weakening Typhoon Krathon. Onshore financial markets in China are closed for the rest for the week due to public holidays.
Other equities were largely mixed, with those in Kuala Lumpur .KLSE and Bangkok .SETI slipping 1% and 0.7%, respectively, while shares in Singapore .STI and Manila .PSI rose marginally by 0.2% each.
HIGHLIGHTS:
** Indonesian 10-year benchmark yields rise 0.1 basis points to 6.46%
** Markets in India are closed for a public holiday
** South Korea inflation cools more than expected as rate cut talk grows
Asian currencies and stocks at 0439 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | -0.22 | -1.96 | .N225 | -1.57 | 14.29 |
China | CNY=CFXS | - | +1.14 | .SSEC | - | 12.15 |
India | INR=IN | - | -0.73 | .NSEI | - | 18.71 |
Indonesia | IDR= | -0.20 | +1.12 | .JKSE | -0.89 | 4.15 |
Malaysia | MYR= | +0.05 | +10.36 | .KLSE | -0.99 | 12.74 |
Philippines | PHP= | +0.14 | -1.25 | .PSI | 0.12 | 14.55 |
S.Korea | KRW=KFTC | -0.23 | -2.42 | .KS11 | -0.60 | -2.92 |
Singapore | SGD= | +0.09 | +2.51 | .STI | 0.27 | 10.81 |
Taiwan | TWD=TP | - | -3.46 | .TWII | - | 24.87 |
Thailand | THB=TH | -0.03 | +4.85 | .SETI | -0.25 | 3.19 |
Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
Asian stock markets https://tmsnrt.rs/2zpUAr4
Reporting by Roushni Nair, Additional reporting by Sherin Sunny in Bengaluru; Editing by Jacqueline Wong
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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.
