The South Korean won led Monday gains among Asian currencies as stocks surged, with sentiment buoyed by the dollar’s decline and markets, awaiting economic data from major countries in the region, priced in early cash rate cuts.
The dollar index which fell more than 1% last week to a six-week low, was trading little unchanged at 105.1.
This week includes a slew of economic data points from some major regional economies, expected to set the tone for Asian markets.
China, the world’s second largest economy, is set to release its import and export figures for October on Tuesday and also its bank lending and credit and key consumer price inflation(CPI) data on Thursday.
“Tuesday’s trade will likely show imports running at a subdued level given the sluggish economy and CPI on Thursday will show benign price pressures again,” HSBC analysts said.
China’s yuan was muted in trading and was more or less unchanged. China’s shares surged 0.9% to a more than two-week high.
Indonesia and Thailand print inflation figures on Monday.
The Indonesian rupiah surged 1.2% to 15540 and was set for its best day since March 24. Stocks in Jakarta gained 1%.
Analysts at ING expect growth in Indonesia to be steady over the next few quarters, then picking up early next year ahead of a presidential election in February.
The Philippines will from Monday start allowing short-selling, a practice that seeks to profit off bets on a stock falling, two weeks behind the initial target, the bourse operator said on Friday.
South Korean won leads Asian FX higher, stocks mixed on rate fears
“I think the Philippines is trying to attract more foreign equity inflows after years of shrinking stock transactions,” Nicholas Chia, macro strategist at Standard Chartered.
“This could be positive for the PHP (Philippine peso), but it also introduces more two-way risk to both the currency and the equity market.”
The peso gained 0.5% against the dollar while stocks in Manila surged 1%.
Thailand’s inflation rate fell for the first time in 25 months, reflecting lower energy prices due to government support measures and lower food prices, the commerce ministry said.
The baht was trading 0.1% higher while the Thai share market was flat. The Malaysian ringgit gained 1.4% against the dollar to hit its highest level since Sept.6 while the Singapore dollar added 0.3%.
Among stock markets, South Korea shares surged 4.1% after authorities re-imposed a ban on short-selling through the first half of 2024.
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