The Malaysian ringgit and stocks led
losses among emerging Asian markets on Monday, despite a rise in
oil prices as investors kept a watchful eye on the International
Energy Agency’s (IEA) plan to follow the United States in
releasing oil reserves.
The ringgit eased 0.2% and was on track for its worst
session since March 22, while equities in Kuala Lumpur
Other regional currencies such as the South Korean won
and the Thai baht also fell slightly. The
Philippines peso, however, rose 0.2%.
The IEA agreed last week to release more oil, joining the
largest-ever US oil reserves release, to counter supply
constraints from the Russia-Ukraine war, while a truce in Yemen
could further ease supply disruption.
“While the fall in crude oil prices has dragged the ringgit
lower now, it is expected to further weaken against the dollar
as we anticipate the US Federal Reserve to hike interest rates
by 50 basis points in the next few policy meetings,” said Chang
Wei Liang, macro strategist (FX and credit) at DBS Bank.
Markets expect the Fed to strike hawkish tones at public
events this week as a jump in short-dated Treasury bond
yields and further inversion of the yield curve
raised risks of a possible recession.
The yield on Indonesia’s 10-year bonds, among
the highest in the region, was roughly unchanged at 6.745%,
while yields on Singapore’s benchmark bonds rose to
Singapore’s central bank is likely to tighten policy at its
review this month, the third time in a row, as inflationary
pressures intensify due to global supply-side disruptions and an
easing of the city-state’s border controls.
Other regional central banks in the Philippines, Thailand
and Indonesia had all left interest rates unchanged last month.
Most equities in the region were mixed as investors placed
cautious bets on the probability of more sanctions against
Russia over its invasion of Ukraine.
Ukrainian authorities accused Russian forces of war crimes
near Kyiv, inviting more scrutiny and possible sanctions from
the West against Russia over its invasion, which it calls a
Stocks in the Philippines were down 0.2%, though
Thailand’s SETI index and South Korean shares
Markets in China and Taiwan were closed for a holiday.
** Malaysian ringgit leads losses among Asian FX
**IOI Corp, Public Bank and Top Glove
Corp top losers on Malaysia index, down
between 1.7% and 1.1%
** South Korea benchmark bond yield at 8-yr high
Asia stock indexes and
currencies at 0530 GMT
COUNTRY FX RIC FX FX INDE STOCKS STOCKS
DAILY % YTD % X DAILY YTD %
Japan -0.13 -6.17 <.n2>
India +0.18 -1.75 <.ns ei>
Indonesi +0.01 -0.79 <.jk a se>
Malaysia -0.21 -1.26 <.kl se>
Philippi +0.18 -0.85 <.ps nes i>
Singapore -0.05 -0.58 <.st e i>
Thailand -0.09 -0.24 <.se ti>
(Reporting by Tejaswi Marthi in Bengaluru; Editing by