INDONESIAN: Asian shares climbed on Thursday, buoyed by the prospect of impending US rate cuts despite uncertainty surrounding their timing, while regional currencies moved little.
Indonesian and South Korean stocks advanced 1% and 0.8%, respectively. Singapore’s benchmark index, among the worst performers in Asia since the start of the year, rose 0.7%.
Investors remained optimistic about the potential easing of US monetary policy after data on Wednesday showed lower growth in its services industry. Federal Reserve Chair Jerome Powell’s reaffirmation about lowering rates also aided sentiment.
Most Asian currencies were subdued, though they pared some losses from the previous session after the greenback eased.
The Malaysian ringgit appreciated 0.3%, snapping a three-day losing streak. South Korea’s won added 0.1%, while the Indian rupee was unchanged.
The US dollar index was last steady at 104.18. “Our view for ringgit is that the currency is undervalued,” Maybank’s head of FX research Saktiandi Supaat said. “Fundamentally, the ringgit remains strong in terms of eventual export recovery.”
The Thai baht, meanwhile, was last down 0.2% at 36.65 per US dollar.
Southeast Asia’s second-largest economy, Thailand, has recently faced weak exports and domestic demand, pressurising its currency, which is the worst performer so far this year in the region. Among other currencies, the Philippine peso pared back earlier gains after the country cut its growth target for 2024 and turned less optimistic about next year’s outlook due to high inflation. It was last up 0.1%.
Next week will be marked by a flurry of central bank decisions in Philippines, Singapore and Thailand.
The Bangko Sentral ng Pilipinas (BSP) is in the spotlight after it postponed its monetary policy meeting to Monday to wait for the release of inflation data scheduled for Friday.
A Reuters poll suggests the BSP will keep its key policy rate on hold for a fourth meeting and at least until the third quarter, later than when the US Federal Reserve is expected to start reducing its rates.