BENGALURU: Asian emerging market currencies and equities edged higher on Thursday as dollar retreated and US Treasury yields eased after mixed economic data soothed concerns about interest rates rising further.
The Indonesian rupiah and Malaysian ringgit snapped their three-day losing streak to appreciate 0.1% and 0.2%, respectively.
Equities in Taiwan, Indonesia, Mumbai and Singapore added between 0.4% and 1.1%.
US Treasury yields, which surged to 16-year highs on Wednesday, eased overnight.
The greenback also gave up some recent gains after the weaker-than-expected September US private payrolls data offered investors some encouragement that interest rates were finally peaking. However, analysts flagged that it was too early to be certain.
“We stay cautious if these data releases signal any clear softening trend in the US economy,” analysts at Maybank wrote in a report.
The pullback in the greenback could be limited as prospects of the United States outperforming the rest of the world could keep the dollar supported, the analysts added.
Back in Asia, equities in the Philippines fell 1.1% after the central bank said it was ready to resume tighter monetary policy with consumer prices rising for a second month in September. The peso edged 0.1% higher.
The South Korean won was marginally up after official data showed that the country’s consumer inflation accelerated for a second month in September, above market expectations.
Meanwhile, Thailand’s inflation for September came in below expectations. The baht was relatively unchanged while equities slid 0.2%.
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