By Himanshi Akhand
Feb 8 (Reuters) – The Philippine peso was the top gainer among emerging Asian currencies on Wednesday, while most regional equities strengthened after less hawkish than feared comments from U.S. Federal Reserve Chair Jerome Powell boosted risk appetite.
The peso PHP= firmed as much as 0.7%. Philippines central bank governor Felipe Medalla said inflation “most likely” peaked in January, while warning that another surprise supply shock could not be ruled out.
The peso slipped 1% in the previous session after data on Tuesday showed that annual inflation in the Philippines rose by far more than expected in January to reach a 14-year high.
Indonesian rupiah IDR= appreciated 0.2% and the Malaysian ringgit MYR= added 0.1%.
“For now, markets are relieved that a more hawkish recalibration in rate expectations is not needed,” said Yeap Jun Rong, Market Analyst at IG.
The U.S. dollar eased on Wednesday after Fed’s Powell acknowledged that interest rates might need to move higher than expected if economic conditions remained strong but reiterated that he felt a process of disinflation was underway. FRX/
In a question-and-answer session before the Economic Club of Washington, Powell reiterated that disinflation has begun but warned that Friday’s blockbuster jobs report showed why the battle against inflation will “take quite a bit of time.”
“It appears that markets had a bout of selective hearing. In particular, Powell’s allusion to ‘dis-inflationary process … has begun’ dominated the take-away for markets serving as a selective excuse to extend Fed pivot rallies,” Vishnu Varathan, head, economics & strategy at Mizuho Bank, wrote in a note.
The Indian rupee INR=IN was up 0.1% and stocks in New Delhi .NSEI gained 0.7%.
The Reserve Bank of India raised its key repo rate by 25 basis points (bps) on Wednesday as widely expected, the sixth straight increase, as core inflation remained high despite signs retail inflation has peaked.
Meanwhile, minutes of Thailand’s rate committee meeting showed it stuck by its assessment that monetary tightening would be gradual and measured, but noted it could be adjusted should the outlook change for growth and inflation.
The baht THB=TH and stocks in Bangkok .SETI were mostly unchanged.
Equities in the region gained, with stocks in Manila .PSI, Sinagpore .STI and Seoul .KS11 adding 1%, 0.3% and 1.4%, respectively.
HIGHLIGHTS
** Philippine 10-year benchmark yield is unchanged at 6.245%
** In the Philippines, top index gainers are Semirara Mining and Power Corporation SCC.PS and Monde Nissin Corp MONDE.PS
** Taiwan’s exports fall for a fifth straight month in January due to a deteriorating global economy and factory closures during the long Lunar New Year holiday
Asia stock indexes and currencies at 0427 GMT
COUNTRY
FX RIC
FX DAILY %
FX YTD %
INDEX
STOCKS DAILY %
STOCKS YTD %
Japan
JPY=
-0.05
+0.00
.N225
-0.42
+5.66
China
CNY=CFXS
+0.12
+1.79
.SSEC
-0.05
5.14%
India
INR=IN
+0.06
+0.08
.NSEI
0.67
-1.46
Indonesia
IDR=
+0.23
+3.05
.JKSE
0.01
1.25
Malaysia
MYR=
+0.12
+2.36
.KLSE
-0.33
-1.60%
Philippines
PHP=
+0.53
+1.46
.PSI
0.99
5.83
S.Korea
KRW=KFTC
-0.11
+0.62
.KS11
1.36
11.12
Singapore
SGD=
+0.02
+1.20
.STI
0.25
4.24
Taiwan
TWD=TP
-0.01
+2.20
.TWII
1.41
10.45
Thailand
THB=TH
-0.03
+3.18
.SETI
-0.05
0.66
(Reporting by Himanshi Akhand in Bengaluru; Editing by Simon Cameron-Moore)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
