Philippine stocks lead Asia higher on upbeat US data, currencies slip

Philippine shares jumped more than 3% on Wednesday, with sentiment across Asia lifted by a pick up in US manufacturing, but the region's currencies came under pressure as the data boosted the dollar on rising bets for policy normalisation.

The South Korean won and Indian rupee led losses among Asia's emerging currencies as investors now look ahead to US jobs data this Friday for further signs of a strong recovery that could engender further talk of policy tightening by the Federal Reserve.

In the Philippines, consumer and real estate stocks led the wider market to their highest level in nearly three months, as curbs in the national capital region were relaxed.

"Philippine stocks are getting a boost from some foreign buying after being shunned for most of second quarter after strict lockdowns were re-imposed," said Nicholas Mapa, senior economist - Philippines, at Dutch-bank ING.

Philippine stocks are the region's worst performers but they have been rising since May 26 as the number of coronavirus cases decline, leading to hopes that restrictions will ease soon. Stocks are up 6.2% so far this quarter.

The peso, however, weakened 0.3%, after the Nikkei reported that the Philippine central bank governor said the bank is open to "doing more" monetary easing.

Indonesian shares rose more than 1% to touch their highest level since April-end, even as data showed annual inflation in May accelerated to its highest since December.

Thai stocks reversed course to slip 0.2%, losing their 19-month peak scaled earlier after the government promised additional fiscal stimulus.

The Indian rupee depreciated 0.6% ahead of the central bank policy meeting this Friday.

The Reserve Bank of India is expected to keep the interest rates at record lows and reiterate its commitment on liquidity, as the country suffers a devastating second wave of the pandemic that has locked down most of the country.

Overnight, data showed US manufacturing activity rose in May furthering signs that the recovery was strong.

While strong U.S growth is a boon for the global picture, it has also raised talks of the Fed having to scale back support measures, threatening Asia's risk-sensitive markets which have held firm on the US central bank's reassurances of a continued dovish stance.

Recent remarks from Fed policymakers have suggested that a discussion on tapering bond-buying was underway, with the upcoming policy meeting in mid-June possibly providing more clarity.

HIGHLIGHTS:

** Indonesian 10-year benchmark yields edge higher to 6.451%

** Consumer and real estate firms top gainers in Manila

** Malaysia's Axiata partners with RHB Bank in bid for digital bank licence