Rupiah rises ahead of BI meeting as Asian currencies climb

The Indonesian rupiah was firm on Tuesday ahead of the country's central bank meeting, as all Asian currencies gained against a dollar reeling from a weak manufacturing print in the United States.

The South Korean won and the Thai baht led gains as they rose 0.4% each, while the Philippine peso, the Singapore dollar and Taiwan's dollar advanced.

The dollar index, which measures the greenback against six peers, declined as US factory output in September slowed because of a global chip shortage and after-effects of a hurricane in the country.

The rupiah rose 0.2% to 14,080 per dollar as investors looked to a Bank Indonesia (BI) meeting for guidance on monetary policy since it's widely expected to keep rates on hold to keep supporting economic recovery.

BI's policies to prioritise macroeconomic stability through a harsh COVID-19 wave have worked well so far, with rupiah being the best performer in the third-quarter among Asian currencies.

Indonesia stocks, rupiah stumble as consumer confidence dips

"The government's focus on tax reforms and re-opening the economy to tourism has also boosted policy credibility and brightened recovery prospects," Mizuho analysts said in a note.

"Substitution of Australian coal for Indonesian coal by China is adding to rupiah's allure at the margin," they added, as Indonesia is a net commodity exporter.

However, Jakarta stocks dropped 0.6% to retreat from a near-record high after rising for six straight sessions.

The mood was upbeat because of a tech-fuelled rally on Wall Street overnight; with a rebound in Chinese markets anchoring gains in Asia a day after weak data stoked investor concerns about the world's second-largest economy.

Philippine stocks jumped as much as 1% to be a top gainer in the region, bolstered by AC Energy Corp rallying 8% on approving a number of deals that would see the power generator stop using thermal coal by 2025.

Shanghai stocks pushed higher, while the Chinese yuan climbed 0.3% to 6.41, blowing past a level it last hit in mid-June.

Markets were still watching out for any announcement from debt-laden developer China Evergrande Group as it approached the end of a 30-day grace period for a missed coupon payment that had been due on Sept. 23.

Financials markets in Malaysia were shut for a holiday.