*
Malaysia posts stronger-than-expected Q4 GDP
*
Malaysian ringgit set for 1.7% decline this week
*
Indonesia's rupiah on track for worst week in about 8
months
By Upasana Singh Feb 10 (Reuters) - Most Asian currencies were set to end the week lower on Friday as fears over prospects of further U.S. interest rate hikes to cool inflation in the world's biggest economy dampened risk sentiment. The Malaysian ringgit fell 0.4%, and was set to drop 1.7% this week, after data showed the country's economy grew 7% from a year earlier on continued expansion in domestic demand and resilient demand in electrical and electronics goods. While the number beat expectations of economists polled by Reuters, the data comes after Malaysia's central bank last month unexpectedly kept its benchmark interest rate unchanged, flagging risks to economic growth after four consecutive rate hikes last year. Indonesia's rupiah , among the best performing currencies in the region so far this year, depreciated 0.3%. It was set for its worst weekly session since last June and mark its first weekly loss in four. Investors remain cautious over the future pace of monetary policy tightening by the U.S. Federal Reserve following hawkish comments from several Fed speakers on Thursday. Markets now await U.S. inflation data due next week. "FX moves remained caught in a recent range, but we opine FX markets may trade slightly defensive, with risk proxies, such as ... AxJs (Asia ex-Japan) under slight pressure," OCBC analysts said in a note. "Focus is still on U.S. CPI (consumer price index) next Tuesday as it should offer some guidance on U.S. dollar direction in the near term."
The dollar index rose 0.2% to 103.39 as of 0454 GMT, having dropped as low as 102.63 in the previous session. The Philippine peso , Singapore dollar and Thailand's baht fell between 0.2% and 0.3%. India's rupee was also trading lower.
Most stock markets across emerging Asia were trading in negative territory, with equities in Jakarta retreating 1.3% to lead losses. Seoul shares , Singapore equities and stocks in Bangkok dipped between 0.3% and 0.6%. Philippines' benchmark index and stocks in Kuala Lumpur rose 0.6% and 0.2% respectively to be the only outliers in the region. Separately, South Korea's vice finance minister told Reuters on Thursday that plans to loosen restrictions in its currency market will raise the won's status globally and boost business opportunities for local financial firms.
HIGHLIGHTS:
** China's January factory gate prices fell more than
economists expected, suggesting that flashes of domestic demand
that had stoked consumer prices after the zero-COVID policy
ended are not yet strong enough to rekindle upstream sectors
** Index provider MSCI said it will cut the weightings of
four Adani Group companies, including flagship firm Adani
Enterprises
** Japan's wholesale prices in January rose 9.5% from a year
earlier, adding to growing signs of inflationary strains that
could keep the central bank under pressure to phase out its
massive stimulus programme
The following table shows rates for Asian currencies against
the dollar at 0448 GMT.
COUNTRY FX RIC FX FX INDE STOCKS STOCKS
DAILY % YTD % X DAILY YTD %
%
Japan -0.11 -0.46 <.N2 0.23 5.94
25>
China <CNY=CFXS -0.26 +1.43 <.SS -0.60 5.23
> EC>
India -0.07 +0.18 <.NS -0.36 -1.52
EI>
Indonesi -0.33 +2.81 <.JK -1.33 -0.66
a SE>
Malaysia -0.37 +1.66 <.KL 0.56 -1.52
SE>
Philippi -0.18 +2.05 <.PS 0.24 4.46
nes I>
S.Korea <KRW=KFTC -0.32 +0.00 <.KS -0.57 10.33
> 11>
Singapor -0.21 +0.87 <.ST -0.28 3.04
e I>
Taiwan -0.20 +1.93 <.TW -0.14 10.18
II>
Thailand -0.33 +2.66 <.SE -0.39 -0.36
TI>
(Reporting by Upasana Singh in Bengaluru; Editing by Kenneth
Maxwell)
