Singapore stocks fall 1%
South Korea shares lose 1.4%
Indonesia, Thailand Feb CPI due Friday
India Q4 GDP due Thursday
By Ayushman Ojha
Feb 26 (Reuters) –Most Asian equities lost ground on Monday while currencies in the region held largely steady ahead of an array of data this week that will help refine expectations for future rate moves by central banks.
Stocks in Singapore .STI dropped as much as 1%, while Indonesian stocks .JKSE and Malaysian shares .KLSE lost as much as 0.6% and 0.2%, respectively.
In South Korea, shares .KS11 were down as much as 1.4%, despite the financial regulator’s announcement of reform measures for listed companies with lower valuations to boost shareholder returns and thus reduce the “Korea discount” on the country’s stock prices.
Currencies in the region were subdued ahead of a week packed with key economic releases from the United States, China, Indonesia and Thailand.
“Markets will focus on any further signs of pick-upin economic activity and price pressures out of the United States, but just as importantly, whether economic activity stabilises in China,” analysts at MUFG wrote.
The U.S. core personal consumption expenditures (PCE) price index – the Federal Reserve’s preferred measure of inflation – is due on Thursday, where expectations are for a 0.4% increase on a monthly basis.
“The U.S. would see the PCE Core, GDP, personal spending and ISM manufacturing out – all data that can potentially lift the greenback if they come out too strongly, though the opposite can happen if they weaken,” analysts at Maybank said in a note.
In Asia, February inflation data from Indonesia and Thailand are due on Friday. Last week, data from Malaysia and Singapore showed that inflation accelerated less than expected in January.
Easing inflation has given central banks some breathing room but investor focus remains on the timing of rate cuts. The central banks of Indonesia and South Korea left their policy rates unchanged last week.
The Indonesian rupiah IDR= weakened 0.3%, while the Philippine peso PHP= and Singapore dollar SGD= both inched 0.1% lower.
Market’s are closely watching the Malaysian ringgit MYR= which traded at lows not seen since the Asian financial crisis last week, as outflows, foreign currency hoarding and a strong dollar pile on pressure.
The country’s prime minister had said the fall was concerning but strong fundamentals underpinned a promising outlook for the economy.
The ringgit was flat at 4.775 per U.S. dollar on Monday.
Focus will also be on India’s fourth-quarter GDP, due on Thursday, and China’s February purchasing manager’s index (PMI) to be released on Friday.
The markets in Thailand .SETI were closed for a public holiday on Monday.
HIGHLIGHTS:
** Indonesia sees 2025 annual GDP growth at 5.3%-5.6%, says planning minister
** Philippines sells record $10.46 bln from retail T-bonds
** China stocks set to snap nine-session winning run, HK shares also down
|
Asia stock indexes and currencies at 0439 GMT |
||||||
|
COUNTRY |
FX RIC |
FX DAILY % |
FX YTD % |
INDEX |
STOCKS DAILY % |
STOCKS YTD % |
|
Japan |
JPY= |
+0.01 |
-6.26 |
.N225 |
0.39 |
17.29 |
|
China |
CNY=CFXS |
-0.04 |
-1.39 |
.SSEC |
-0.58 |
0.42 |
|
India |
INR=IN |
+0.05 |
+0.37 |
.NSEI |
-0.30 |
1.91 |
|
Indonesia |
IDR= |
-0.22 |
-1.47 |
.JKSE |
-0.11 |
0.19 |
|
Malaysia |
MYR= |
+0.00 |
-3.87 |
.KLSE |
-0.12 |
6.36 |
|
Philippines |
PHP= |
-0.12 |
-1.01 |
.PSI |
0.23 |
7.43 |
|
S.Korea |
KRW=KFTC |
+0.02 |
-3.22 |
.KS11 |
-0.69 |
-0.23 |
|
Singapore |
SGD= |
-0.06 |
-1.86 |
.STI |
-0.79 |
-2.48 |
|
Taiwan |
TWD=TP |
-0.01 |
-2.60 |
.TWII |
0.17 |
5.52 |
|
Thailand |
THB=TH |
– |
-4.83 |
.SETI |
– |
-1.25 |
Reporting by Ayushman Ojha in Bengaluru; Editing by Jacqueline Wong