By Archishma Iyer
March 11 (Reuters) – Most Asian currencies and stocks started the week muted with investors looking for clues on the outlook for inflation, while a mixed jobs report from the United States pointed towards the possibility of a rate cut in the coming months.
Monthly payrolls from the world’s largest economy late on Friday revealed an acceleration in jobs growth but also showed that unemployment reached a two-year high, boosting chances of a rate cut in June.
Traders are looking to U.S. consumer price inflation data set to be announced late on Tuesday in an otherwise light data week, with bets on a rate cut in June from the U.S. Federal Reserve currently standing at 73%, according to the CME FedWatch tool.
At 0400 GMT, the dollar index =USD – which measures the strength of the greenback against six major currencies – was hovering at 102.7.
In Asia, the Thai baht THB=TH was the biggest loser among emerging Asian currencies, depreciating about 0.2%, while the Taiwan dollar TWD=TP fell marginally.
Other currencies such as the Singapore dollar SGD=, Philippines peso PHP= and the Malaysian ringgit MYR= were trading flat, the ringgit not far from its 26-year low.
The South Korean won KRW=KFTC was the outlier, rising about 0.4%.
“External market drivers will continue to affect the (Asian) currencies. If the view on the Fed is maintained, and incoming data in the U.S. support the view further, Asian currencies would continue rising against USD,” analysts from Sumitomo Mitsui Banking Corp said in a research note.
Elsewhere, China reported a rise in consumer prices for the first time in six months for February. This comes as Asia’s largest economy grapples with a protracted property crisis, crushing consumer sentiment and demand.
“Given that this is heavily attributed to seasonal holiday spending during the Lunar New Year, sustenance over the coming months will be key to prove that the recent strength is not a one-off,” DBS analysts wrote.
Among Asian shares, stocks in Manila .PSI, Singapore .STI, South Korea .KS11 fell between 0.2% and 0.8%, even as Kuala Lumpur .KLSE firmed 0.3%.
Taiwan equities .TWII, which hit multiple record highs last week, spurred by enthusiasm in artificial intelligence stocks, took a breather during the day, slipping about 0.2%.
Indonesian markets were closed due to a public holiday.
HIGHLIGHTS:
** South Korea urges Vietnam to give its companies tax incentives
** EXCLUSIVE-Chinese regulators ask large banks to step up support for Vanke, sources say
** China trying to ‘normalise’ military drills near Taiwan, island’s top security official says
Asia stock indexes and currencies at 0400 GMT
COUNTRY
FX RIC
FX DAILY %
FX YTD %
INDEX
STOCKS DAILY %
STOCKS YTD %
Japan
JPY=
+0.10
-4.00
.N225
-2.52
15.6
China
CNY=CFXS
-0.04
-1.29
.SSEC
0.21
2.60
India
INR=IN
+0.16
+0.67
.NSEI
-0.02
3.49
Indonesia
IDR=
–
-1.22
.JKSE
–
1.50
Malaysia
MYR=
-0.02
-1.99
.KLSE
0.29
6.17
Philippines
PHP=
+0.00
-0.33
.PSI
-0.93
6.63
S.Korea
KRW=KFTC
+0.35
-2.07
.KS11
-0.34
0.60
Singapore
SGD=
+0.07
-0.86
.STI
-0.23
-3.10
Taiwan
TWD=TP
-0.13
-2.36
.TWII
-0.27
10.04
Thailand
THB=TH
-0.16
-3.58
.SETI
-0.25
-2.32
(Reporting by Archishma Iyer in Bengaluru; Editing by Stephen Coates)
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