Asian shares rise, currencies drop ahead of U.S. jobs data
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Most Asian stock markets rose on
Friday while currencies fell against a firmer U.S. dollar, as
investors awaited the key U.S. non-farm payrolls report for
further clues about the Federal Reserve policy after dovish
signals from global central banks.
Equities in Jakarta advanced 0.7% to hit a more than
one-month high and were on track for a 0.6% weekly rise. Stocks
in Seoul, Bangkok and Singapore advanced
between 0.2% and 0.4%. Philippine stocks slipped 1% and
Malaysian shares eased 0.1% to be the only outliers.
Market participants are now awaiting the U.S. non-farm
payrolls report, due later in the day, to gauge the strength of
the labor market.
“A positive result may trigger some U.S. dollar strength as
markets price in more rate hikes and delayed rate cuts from the
FOMC (Federal Open Market Committee),” MUFG Bank analysts said
in a note.
The European Central Bank (ECB) and the Bank of England
(BoE) hiked their rates by 50 basis points each on Thursday.
The hikes came a day after the Fed delivered a 25-bp
increase and Chair Jerome Powell said the “disinflationary”
process in the world’s largest economy had started.
“Market players viewed recent decisions of major central
banks to be more dovish than expected,” said Poon Panichpibool,
a markets strategist at Krung Thai Bank, adding that a rebound
in the U.S. dollar was weighing on Southeast Asia’s currencies.
The dollar index was up 0.1% at 101.85, as of 0615
GMT, away from Wednesday’s nine-month low of 100.80.
In forex markets, the South Korean won fell 0.7%,
while Malaysia’s ringgit declined 0.6% and was set to
snap three straight weeks of gains.
The Indonesian rupiah and India’s rupee
eased 0.1% each. The rupiah was on track for a fourth straight
weekly gain, while the rupee was set for a 0.9% slump for the
week.
In Indonesia, investors are now awaiting the fourth-quarter
gross domestic product due on Feb. 6. A Reuters poll showed
economic growth likely slowed in the last quarter as declining
commodity and energy prices hit exports, and a widely expected
global recession could accelerate the slowdown this year.
In India, the focus was on Adani group shares, which
have lost $115 billion in market value this week after a U.S.
short-seller report.
Separately, the country’s central bank will hold its policy
meeting next week. Analysts at Barclays expect the bank to
deliver a final 25-bp rate hike and shift to a neutral stance.
HIGHLIGHTS:
** The Philippines will launch next week an offer of
peso-denominated retail bonds due 2028, seeking to raise $556.79
million initially at a rate-setting auction on Feb. 7
** China’s services activity in January expanded for the
first time in five months as spending and travel got a boost
from the lifting of stringent COVID-19 curbs, a private sector
survey showed
** Indonesian 10-year benchmark yields down 5 basis points
at 6.579%
The following table shows rates for Asian currencies against
the dollar at 0557 GMT.
COUNTRY FX RIC FX FX INDE STOCKS STOCKS
DAILY % YTD % X DAILY YTD %
%
Japan +0.02 +1.93 <.n2>