*
Asian currencies broadly higher
*
Stocks in Manila lead losses
*
Thai baht hovers near 10-month high
*
Fed expected to raise rates by 25 bps
By Upasana Singh Jan 30 (Reuters) - Asian currencies rose on Monday as Chinese markets resumed trade after a week-long Lunar New Year break, while investors awaited key central bank events this week, including a widely expected quarter-percentage point rate hike by the U.S. Federal Reserve. Stock markets across the region fell, with China and Taiwan only trading in positive territory. Chinese stocks jumped as strong consumer spending and a rebound in travel during the break boosted sentiment, while Taiwan shares hit their highest since late June. The Chinese yuan rose 0.6% to hit a near two-week peak, while the Taiwan dollar firmed 0.7% to its highest since Aug. 23 last year.
Thailand's baht , which has been the region's best performing currency so far this year, appreciated 0.3% to hover near its highest level in more than 10 months. "Given the outlook on modest Fed hikes, we see some potentially stronger currency movements this week against the greenback, helped by the positive outlook on China," analysts at MUFG Bank said in a note. The Fed is widely expected to hike rates by 25 basis points (bps) on Wednesday. Market participants will be watching out for guidance on the central bank's future policy decisions as U.S. inflation cools from decades-high levels.
"The Fed's language would be scrutinised and we see risks that the Fed would prefer to err on the side of caution by mentioning about the stickier services CPI (consumer price index) and that could be a source of support for the U.S. dollar," analysts at Maybank wrote in a note. The dollar index , which measures the greenback against a basket of currencies, rose 0.04% to 101.93, as of 0609 GMT.
Most central banks in Southeast Asia are dialling back their
policy tightening, with Malaysia's central bank unexpectedly
pausing, Indonesia signalling an early end to its cycle and the
Bank of Thailand hinting at measured tightening ahead.
The Reserve Bank of India is expected to pause its hiking
cycle after a likely modest increase of 25 bps at its meeting
one week after New Delhi's Feb. 1 budget, a Reuters poll showed.
Philippine stocks were the top losers among the
region's stocks markets, declining 1.7% to a more than two-week
low.
Indian shares shed 0.2%. Most Adani group shares
extended their sharp falls as a detailed rebuttal of a U.S.
short-seller's criticisms failed to pacify investors.
Stocks in Jakarta dipped 0.6%, while Singapore
equities lost 0.4%.
HIGHLIGHTS:
** U.S. secures deal with Netherlands, Japan to curb exports
of some advanced chip-making machinery to China - Bloomberg
reports
** China's factory activity likely contracted more slowly in
January - Reuters poll
** Indonesia sees record coal exports of more than 500 mln
tonnes in 2023
The following table shows rates for Asian currencies against the
dollar at 0609 GMT.
COUNTRY FX RIC FX FX INDE STOCKS STOCKS
DAILY % YTD % X DAILY YTD %
%
Japan +0.18 +1.15 <.N2 0.06 5.04
25>
China <CNY=CFXS +0.62 +2.16 <.SS 0.42 6.12
> EC>
India -0.22 +1.24 <.NS -0.23 -2.99
EI>
Indonesi +0.07 +3.97 <.JK -0.61 0.09
a SE>
Malaysia +0.07 +3.82 <.KL 0.01 0.15
SE>
Philippi +0.02 +2.20 <.PS -1.74 5.53
nes I>
S.Korea <KRW=KFTC +0.26 +2.96 <.KS -1.26 9.67
> 11>
Singapor -0.03 +2.04 <.ST -0.35 4.03
e I>
Taiwan +0.74 +1.86 <.TW 3.76 9.59
II>
Thailand +0.27 +5.64 <.SE -0.03 0.73
TI>
(Reporting by Upasana Singh in Bengaluru; Editing by Subhranshu
Sahu)
