BENGALURU: Most Asian stocks and currencies gained on Friday as dovish signals from US Federal Reserve Chair Jerome Powell earlier in the week lifted sentiment, while the Philippine peso slipped after a two-day gaining streak.
The peso fell 0.2 percent to 59.06 per dollar, leaving it on track to end the week 0.3 percent lower.
The Bangko Sentral ng Pilipinas (BSP) cut its key policy rate to a three-year low of 4.50 percent on Thursday and signalled it was nearing the end of its easing cycle.
“The BSP cutting rates yesterday further narrows the rate differential with the US, which tends to be less supportive of the currency,” said Lloyd Chan, senior currency analyst at MUFG.
Philippine central bank governor Eli Remolona said on Friday the bank was intervening “a little bit” in the foreign exchange market to curb peso volatility, but was not targeting a specific rate against the US dollar.
Meanwhile, Thailand’s baht firmed, while equities inched higher, but were on course to end the week 1.6 percent lower.
Thai Prime Minister Anutin Charnvirakul moved to dissolve parliament on Thursday, “returning power to the people” after a rift with the largest opposition group, the People’s Party.
The baht has been influenced by strong gold prices this year, said Vishrut Rana, senior economist at S&P Global Ratings, adding that while this external dynamic will continue, the higher uncertainty as elections conclude could cause some pullback in appreciation pressure.
The currency has been one of the best performers in the region so far this year, gaining more than 8 percent.
Focus will be on the Bank of Thailand’s monetary policy decision next week, with a 25 basis point rate cut seen likely.
Most other regional currencies gained, with the Malaysian ringgit set to end the week 0.4 percent higher.
Malaysian stocks advanced 0.5 percent and were on course for their best week since late-September.
Among Asian equities, Singapore stocks climbed 1.2 percent to a record high and were set to post their third straight weekly gain.
MUFG’s Chan said the Fed’s widely expected rate cut has boosted risk appetite and supported equities across emerging Asia, which are viewed as risk assets.
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