*
Philippine peso at over three-week low
*
Philippine Jan CPI at fresh 14-year high of 8.7%
*
Reserve Bank of India's rate decision due on Wednesday
By Upasana Singh Feb 7 (Reuters) - Stocks in emerging Asian markets were mixed on Tuesday, while the Philippine peso hit a more than three-week low as investors assessed the likelihood of further interest rate hikes. Equities in Kuala Lumpur and Singapore retreated 1% and 0.3%, respectively. Meanwhile, Seoul shares added 0.5% and stocks in Jakarta traded 0.9% higher.
Annual inflation in the Philippines blew past expectations in January to reach a 14-year high on surging food prices, raising the chance that the central bank will deliver a bigger interest rate hike to tame prices when it meets next week. "We believe Governor (Felipe M.) Medalla will whip out a 50bp (basis point) rate increase in an attempt to get ahead of surging inflation," said Nicholas Mapa, senior economist with ING. "Medalla previously sounded off on the possibility of pausing 'as early as the first quarter' but today's inflation report likely means BSP (Bangko Sentral ng Pilipinas) will need to stay hawkish in the near term." Stocks in Manila shed 0.3% on fears of a larger rate-hike, while the peso slipped 1% to hit its lowest since Jan. 13. The ringgit , which has gained 2.4% so far this year, weakened 0.9% to its lowest since Jan. 19. Indonesia's rupiah fell 0.6% to hit a more than two-week low.
In contrast, the Thai baht rose 0.3%. Singapore's dollar and the Indian rupee each inched 0.1% higher.
A strong U.S. jobs data raised concerns that the Federal
Reserve could keep interest rates higher for longer. Investors
now await the Fed chief's speech at the Economic Club of
Washington later in the day for clues on future policy
decisions.
"All eyes will be on Fed Chair Jerome Powell's comments
ahead, with the recent strength in the labour market seemingly
opening the door for more hawkishness," said Yeap Jun Rong, a
market analyst at IG.
"That said, sticking to his script at the recent Federal
Open Market Committee meeting with not too many surprises could
see risk sentiments recover, in line with the upward bias
presented from the broader trend."
The dollar index , which hit a near one-month high of
103.76 on Monday, fell 0.1% to 103.45 as of 0540 GMT.
Separately, South Korea unveiled details of a long-touted
plan to expand its currency spot and swap markets to offshore
players as it strives to lure global investors.
HIGHLIGHTS:
** Malaysia's industrial production in December rose 3% from
a year earlier, slower than expected, government data showed
** Thailand's exports are likely to grow 1% to 2% this year,
unchanged from a previous forecast, due to the slowing global
demand
** Indonesia will suspend some palm oil export permits to
secure domestic supply amid rising cooking oil prices ahead of
the upcoming Islamic festivals
The following table shows rates for Asian currencies against
the dollar at 0540 GMT.
COUNTRY FX RIC FX FX INDE STOCKS STOCKS
DAILY % YTD % X DAILY YTD %
%
Japan +0.29 -0.87 <.N2 -0.06 6.06
25>
China <CNY=CFXS +0.22 +1.71 <.SS 0.14 4.99
> EC>
India +0.08 +0.08 <.NS 0.02 -1.86
EI>
Indonesi -0.63 +2.77 <.JK 0.87 1.21
a SE>
Malaysia -0.91 +2.44 <.KL -0.97 -1.30
SE>
Philippi -1.00 +1.22 <.PS -0.33 5.29
nes I>
S.Korea <KRW=KFTC -0.32 +0.61 <.KS 0.52 9.59
> 11>
Singapor +0.08 +1.01 <.ST -0.26 3.87
e I>
Taiwan -0.18 +2.23 <.TW 0.14 9.03
II>
Thailand +0.31 +2.81 <.SE -0.14 0.67
TI>
(Reporting by Upasana Singh in Bengaluru; Editing by Dhanya Ann
Thoppil)
