Most Asian currencies gained on
Thursday, helped by a pullback in the U.S. dollar and the return
of some risk appetite to markets, while Malaysia’s ringgit
traded flat ahead of a budget announcement and speculation of a
The Thai baht rose 0.7% in its third straight
session of gains and traded at 37.180 to the dollar, and the
Singapore dollar was up 0.3%.
The greenback stregthened overnight after data showed
private employment rose more than expected in September, which
meant the Federal Reserve would likely stick with its hawkish
stance. However, gains in the dollar pulled back in Asia morning
“(Markets) are betting that the Fed will back down on rate
hikes and pivot on rising recession risks. But the Fed appears
less inclined to swerve so quickly this time than it has on
occasion in the past 15 years,” said Vishnu Varathan, an analyst
at Mizuho Bank.
U.S. benchmark 10-year yields rose overnight by 14.4 basis
points (bps) to 3.761%. Yields in Asia followed, with Indonesian
yields up 1.2 bps to 7.213%, and Singapore’s
up 6.5 bps to 3.397%.
“We foresee the global investors to continue having
intention for reducing their position on Indonesian government
bond market as of today until tomorrow,” analysts at Maybank
The cautionary selling would come ahead of a key U.S. labor
report on Friday, they added. The jobless claims data due
overnight would be another indicator of U.S. economic strength,
and by extension, the rate of the Fed’s policy tightening.
Malaysia’s ringgit traded flat, ahead of the 2023
budget announcement on Friday.
“The issue with the ringgit is not so much the budget, but
actually the expectation that there will be a snap general
election imminently. There’s talk that the parliament could be
dissolved as as as early as tomorrow to hold the snap general
election,” said Alvin Tan, head of Asia FX strategy at RBC
Local media have reported speculation that the parliament
could be dissolved even before the budget was tabled by the
finance minister, adding a further layer of uncertainty for
Oil prices trended higher after OPEC+, a group of
oil-exporting countries, said they would further reduce global
supply with the largest cut to production since 2020.
Analysts at Maybank said this will further complicate global
central banks’ fight against inflation.
Meanwhile, markets in South Korea enjoyed a rally on the
back of advances made by heavyweight chipmakers, with the won
rising 0.8% and the main stock index up 1.5%.
Late-day buying on Wall Street, which spilled into a rally
in U.S. equity futures, also meant the return of some
risk appetite to markets.
Stock markets in Asia traded broadly higher, with markets in
Thailand and Singapore rising 0.9% and 0.4%
respectively. All other major stock markets in Asia also saw
Markets in China remained shut for a holiday.
** India yields rise after country’s bonds
not included in J.P. Morgan debt index, traders say
** Philippine government raises $2 bln in dollar bonds, in
the first offshore debt issue by the Marcos adminstration
Asia stock indexes and currencies
at 0213 GMT
COUNTRY FX RIC FX FX INDE STOCKS STOCKS
DAILY % YTD % X DAILY YTD %
Japan +0.08 -20.3 <.n2>
India -0.09 -8.90 <.ns ei>
Indonesi +0.07 -6.13 <.jk a se>
Malaysia +0.02 -10.0 <.kl se>
Philippi +0.15 -12.9 <.ps nes i>
Singapor +0.32 -5.04 <.st e i>
Taiwan +0.12 -12.1 <.tw ii>
Thailand +0.71 -10.2 <.se ti>
(Reporting by Harshita Swaminathan; Editing by Kim Coghill)