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Most emerging Asian stock markets
advanced on Wednesday, buoyed by a pull-back in COVID-19 cases
in China and hopes of progress in Russian-Ukraine peace talks,
though traders held off on big bets before the US Federal
Reserve’s rate decision.
Equities in Thailand and South Korea climbed
0.8% and stocks in Singapore rose more than a percent to
a two-week high.
Currencies also edged higher, with the Thai baht
and Malaysian ringgit each firming 0.2%.
The gains followed a relief rally on Wall Street overnight,
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driven by hopes of a resolution to the conflict in Ukraine.
Ukrainian President Volodymyr Zelenskiy said on Wednesday peace
talks with Russia were sounding more realistic but more time was
needed.
Moves in Asia were still cautious ahead of a closely watched
Fed rate decision later in the day (1800 GMT). Markets have
already priced in a 25 basis points rate hike and will look for
further policy clues in light of surging inflation and volatile
commodity prices following Russia’s invasion of Ukraine.
“Considering the risks around oil prices, Asia inflation and
developed markets monetary tightening, the risks are skewed
towards Asia central banks turning more hawkish ahead,” said
Duncan Tan, a rates strategist at DBS Bank.
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“A hawkish tilt is more likely in economies where recent
inflation prints have climbed or stayed above central bank
targets,” Tan said, pointing to Thailand and India as examples.
“Comparatively, for Bank Negara Malaysia and Bank Indonesia,
inflation appears to be better anchored and thus, these are less
pressures and urgency for them to pivot.”
Regional markets also steadied as a drop in daily COVID-19
cases in mainland China aided sentiment.
Shares in Indonesia were last up 0.6%, after
climbing nearly a percent earlier, and the rupiah edged
up 0.2%.
The country’s finance minister said the economy had remained
resilient in the face of increased volatility due to the war in
Ukraine and vowed to protect people from an “extreme” rise in
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food prices.
Bonds in the region remained under pressure, having taken a
beating last week when surging commodity prices raised inflation
risks, with yields on high-returning Indonesian benchmark bonds
rising 32 basis points to 6.766%.
HIGHLIGHTS:
** Top gainers on the Singapore STI include United
Overseas Bank Ltd up 3.5% and Yangzijiang Shipbuilding
Holdings Ltd up 2.29%
** Top gainers on the Jakarta stock index include
Victoria Investama Tbk PT up 25.48% and Tanah Laut Tbk
PT up 23.42%
Asia stock indexes and currencies
at 0432 GMT
COUNTRY FX RIC FX FX INDE STOCKS STOCKS
DAILY % YTD % X DAILY YTD %
%
Japan +0.08 -2.63 <.n2>
China
India +0.36 -2.63 <.ns ei>
Indonesi +0.10 -0.42 <.jk a se>
Malaysia +0.17 -0.81 <.kl se>
Philippi +0.04 -2.49 <.ps nes i>
S.Korea
Singapore +0.12 -1.09 <.st e i>
Taiwan -0.15 -3.42 <.tw ii>
Thailand +0.09 -0.27 <.se ti>
($1 = 14,316.0000 rupiah)
(Reporting by Riya Sharma; Editing by Kim Coghill)
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