South Korean shares fall 1.3%
Philippine stocks down 1.9% after GDP data
Malaysia v. bank holds rate
Updates at 0728 GMT
By Ayushman Ojha
May 9 (Reuters) –Asian currencies were largely muted on a firmer dollar and most regional stocks slipped as investors cautiously awaited US inflation data for clues to the Federal Reserve’s rate outlook, while Malaysia’s central bank held rates steady as expected.
The South Korean won KRW=KFTC fell 0.6%, and the Taiwanese dollar TWD=TP inched 0.2% lower.
The Malaysian ringgit MYR= inched 0.1% higher after the central bank held its benchmark interest rate unchanged at 3%, against a background of a weakening currency and a steady inflation outlook.
The decision came in line with market expectations, with a Reuters poll expecting the Bank Negara Malaysia (BNM) to keep its policy rate unchanged until at least 2026.
Some analysts had not ruled out the chance of a rate hike, citing the upside risk to inflation.
Indonesia’s financial markets were shut for a public holiday. On Tuesday, its central bank governor said a further rate hike was probably not needed as last month’s increase drew capital inflows and stabilized the rupiah amid a better-than-expected global backdrop.
The rupiah IDR= has lost nearly 4% this year, while the ringgit MYR= has depreciated 3.2% in 2024.
Other regional currencies, such as the Singapore dollar SGD= and the Philippine peso PHP=were largely unchanged.
Most stocks in the emerging Asia region were lower as investors awaited US consumer inflation data for April, due on Wednesday, to get more clues about the Fed’s stance on rate cuts, after a dovish signal from last week’s softer-than-expected jobs data.
Stocks in South Korea .KS11 fell as much as 1.3%, while Philippine shares .PSI lost 1.9% after data showed the economy accelerated less than expected in the first quarter.
Malaysian shares .KLSE were down 0.2% after the rate decision, while Taiwan shares .TWII fell 0.7%.
Thailand stocks .SETI edged 0.1% lower after rising as much as 0.5% in early trade, while Singapore stocks .PATH lost 0.1%.
HIGHLIGHTS:
** China’s exports and imports return to growth, signaling demand recovery
** India inflation likely slipped in April
** BOJ’s board turned hawkish in April, steady rate hikes now in view
| Asia stock indices and currencies at 0728 GMT | ||||||
| COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
| Japan | JPY= | -0.20 | -9.46 | .N225 | -0.34 | 13.78 |
| China | CNY=CFXS | -0.02 | -1.76 | .SSEC | 0.83 | 6.03 |
| India | INR=IN | +0.03 | -0.34 | .NSEI | -0.76 | 1.85 |
| Indonesia | IDR= | – | -4.02 | .JKSE | – | -2.53 |
| Malaysia | MYR= | +0.06 | -3.10 | .KLSE | -0.19 | 10.11 |
| Philippines | PHP= | +0.02 | -3.44 | .PSI | -1.75 | 1.43 |
| S.Korea | KRW=KFTC | -0.63 | -5.99 | .KS11 | -1.20 | 2.14 |
| Singapore | SGD= | -0.07 | -2.74 | .PATH | -0.11 | 0.63 |
| Taiwan | TWD=TP | -0.15 | -5.31 | .TWII | -0.68 | 14.67 |
| Thailand | THB=TH | +0.09 | -7.39 | .SETI | -0.05 | -3.05 |
Reporting by Ayushman Ojha in Bengaluru; Editing by Clarence Fernandez and Janane Venkatraman
Tags: Asian muted firm dollar stocks fall Malaysia holds rate
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