Asian shares rise ahead of U.S. inflation data
Most Asian currencies slipped in thin
trading on Monday, while stock markets in the region perked up
on hopes that a key reading on U.S. inflation might show some
signs of cooling.
Stocks in Taipei settled 1.5% higher in their best
session in a month, while shares in Manila and Bangkok
were also firmer. Markets in China, South Korea and Hong
Kong were closed for holidays.
“A weaker dollar is providing some boost to risk appetite.
Markets are taking their cue from the price action on Friday in
the U.S.,” said Irene Cheung, a senior Asia strategist at ANZ in
On Friday, major Wall Street indexes recorded their first
weekly gain in four as investors went on a buying spree,
shrugging off concerns about the economic outlook.
Investors are waiting for Tuesday’s U.S. CPI report after
Federal Reserve officials continued their hawkish rhetoric on
Bulls are hoping U.S. consumer prices will hint at a peak
for inflation. Falling petrol prices are seen pulling down the
headline index by 0.1%, according to a Reuters poll.
In currencies, the Thai baht and the Philippine
peso weakened between 0.3% and 0.4%.
Indonesia’s rupiah and the Malaysian ringgit
dipped 0.1% each, even as the dollar hovered near a two-week
low. The dollar was restrained by the risk of higher European
interest rates and Japanese intervention.
“Despite the dollar pullback this morning, the fundamental
drivers for some of the weaker Asia currencies have not
changed,” Cheung said.
Over the weekend, a Japanese official said the government
must take steps to counter excessive declines in the yen, after
the currency hit its weakest level against the dollar in 24
years. The yen was down 0.3% on Monday.
This week, investors will keep an eye out for a slew of
August economic data from China. India’s inflation report is
expected later in the day.
A Reuters poll found that India’s retail inflation likely
snapped a three-month downward trend in August as food prices
surged. That may add pressure on the Reserve Bank of India to
raise interest rates more aggressively in coming months.
The rupee was flat, while stocks rose 0.8%
to their highest since Aug. 19.
Asian currencies have come under downward pressure in recent
months, driven by a slump in the Chinese yuan and a
Meanwhile, the Financial Times reported Indonesian President
Joko Widodo was considering joining India and China in buying
Russian oil to alleviate increasing pressure of rising energy
costs in the country.
** Yield on Indonesia’s 10-year benchmark bond
falls to 7.146%, lowest in a week
** Taiwanese shares rise most in more than a month
** Indonesia considering buying Russian oil as fuel prices
soar – FT
Asia stock indexes and currencies at 0659 GMT
COUNTRY FX RIC FX FX YTD INDEX STOCK STOCKS
DAILY % S YTD %
Japan -0.34 -19.52 1.16 -0.87
China – -8.30 – -10.38
India +0.01 -6.59 0.77 3.55
Indonesia -0.05 -3.95 -0.02 10.03
Malaysia -0.13 -7.51 0.04 -4.49
Philippines -0.26 -10.47 1.26 -6.08
S.Korea – -13.90 – -19.93
Singapore +0.04 -3.49 0.30 4.77
Taiwan -0.01 -10.38 1.54 -18.72
Thailand -0.34 -8.28 0.82 0.64
(Reporting by Harish Sridharan in Bengaluru; Editing by
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