*
Philippine central bank expected to hike rates by 50 bps
*
Bank Indonesia expected to stand pat on rates
*
Philippine peso biggest gainer among peers
By Tejaswi Marthi Feb 16 (Reuters) - Asian currencies and stocks climbed on Thursday as the greenback wobbled even as soaring U.S. retail sales data had investors betting that interest rates would stay higher for longer to temper demand. The Indian rupee climbed 0.2% and the Singapore dollar inched 0.1% higher. The Thai baht also edged up. U.S. retail sales rebounded sharply in January - up 3%, against expectations of a 1.8% rise - after two straight monthly declines, driven by purchases of motor vehicles and other goods, the U.S. Commerce Department said on Wednesday. The figures came on the heels of data that showed a stronger-than-expected labour market and stickier-than-expected inflation. For now, investors have chosen to cheer that data as good news for the economic outlook rather than worry about it being likely to support interest rate rises. "Weather played a strong role as January was not as cold as December. However, we have to be a little cautious with weather patterns returning to more seasonal norms in February," analysts at ING said. "We could get a significant correction next month especially with household finances remaining under pressure from high inflation and slowing wage growth," they added. The resilience in retail sales also lifted stocks in the region. South Korean shares climbed 1.8%, while equities in Singapore gained 1.2%. Equities in Malaysia and Indonesia climbed 0.2% each. "The better-than-expected U.S. data should support global growth picture. In addition, China reopening story has yet to fully play out and if data in coming weeks starts to show a pick-up in activity, this should bode well for global growth," said Christopher Wong, currency strategist at OCBC. Later in the day, central banks of the Philippines and Indonesia are meeting. Analysts expect the Bangko Sentral ng Pilipinas (BSP) to hike rates by 50 basis points to temper the country's sticky inflation, while Bank Indonesia is expected to leave rates unchanged as it attempts to mark an end to a short six-month long hiking cycle. The Philippine peso was up 0.3% ahead of the central bank meeting and was also the top gainer among its peers, while the Indonesian rupiah advanced 0.2%. "Capital formation in the fourth quarter GDP moderated as investments in durable equipment and construction slow as rate hikes bite. We believe this is the reason why the BSP will pause after today’s 50 basis points (bps) rate hike as they are fully aware that rate hikes are not effective against supply side induced inflation," said Nicholas Mapa, senior economist for the Philippines ING. HIGHLIGHTS:
** Indonesian 10-year benchmark yields rise 1.1 basis points
to 6.774%.
** China's January air passenger traffic rose 34.8% from a
year earlier, the aviation regulator said at a regular news
conference on Thursday, after the country abandoned its strict
zero-COVID policy.
** China says industrial development facing severe external
environment because of U.S. suppression.
Asia stock indexes and currencies at 0530 GMT
COUNTRY FX RIC FX FX INDE STOCKS STOCKS
DAILY % YTD % X DAILY YTD %
%
Japan +0.14 -2.10 <.N2 0.77 6.21
25>
China <CNY=CFXS +0.03 +0.74 <.SS 0.82 7.06
> EC>
India +0.18 +0.08 <.NS 0.54 0.04
EI>
Indonesi +0.16 +2.57 <.JK -0.20 0.73
a SE>
Malaysia -0.23 +0.00 <.KL 0.15 -0.34
SE>
Philippi +0.27 +0.94 <.PS 0.02 3.91
nes I>
S.Korea <KRW=KFTC -0.05 -1.43 <.KS 1.83 10.55
> 11>
Singapor +0.15 +0.45 <.ST 1.18 2.10
e I>
Taiwan +0.18 +1.50 <.TW 0.86 10.11
II>
Thailand +0.00 +0.96 <.SE 0.65 -0.63
TI>
(Reporting by Tejaswi Marthi in Bengaluru; Editing by Sam
Holmes)
