*
Thai baht weakens 0.7%
*
Equities in the region mixed
By Himanshi Akhand Feb 21 (Reuters) - Emerging Asian currencies inched lower on Tuesday, with Thailand's baht declining most, as investors awaited the minutes of U.S. Federal Reserve's latest meeting for further policy clues. The baht weakened 0.7%, a day after appreciating 0.6%. "FX markets were largely in consolidative mood overnight amid U.S. holidays while we took stock if the hawkish repricing of the Fed has gone a little too fast," analysts at OCBC wrote in a note. The U.S. dollar index, which climbed three weeks in a row for a gain of about 1.7% through February so far, was steady below recent peaks on Tuesday. A strong run of U.S. economic data recently have raised expectations that the Fed will stay on its rate-hike path for longer than earlier thought, and hawkish comments from Fed officials have also supported the dollar. The South Korean won and the Singaporean dollar fell 0.1% each. The Indonesian rupiah also declined 0.1%. Indonesia expects to achieve a lower fiscal deficit next year, while economic growth is predicted to accelerate, senior officials said on Monday. It expects a fiscal deficit of 2.84% of GDP in 2023 according to Finance Minister Sri Mulyani Indrawati.
Equities in the region struggled for direction. Chang Wei Liang, FX and credit strategist at DBS Bank, said Chinese equities outperformace on Monday showed risk appetite appeared to have improved. Stocks in Shanghai edged up 0.1%, after rallying over 2% a day earlier.
Equities in Manila advanced 0.2%, while those in
Singapore and Bangkok retreated 0.1%.
Traders are now looking to European and U.S. manufacturing
data later Tuesday and Friday's core PCE price index to guide
their next steps, while the Fed is due to release the minutes of
its l;ast policy meeting on Wednesday.
"The semiconductor industry is entering into a bit of a
cyclical downturn, so we could see currencies like the Korean
won softening a little bit in response to weaker demand," Chang
said.
HIGHLIGHTS
** The Bank of Korea will hold its base interest rate at
3.50% on Thursday and for the rest of this year, a Reuters poll
found
** Thai Prime Minister Prayuth Chan-ocha has gained ground
on frontrunner Paetongtarn Shinawatra in a new survey on
Thailand's top choice for premier
** Indonesian President Joko Widodo said he would decide
later on Tuesday or on Wednesday the candidates he intended to
nominate to parliament to be the governor of the central bank
after the current chief's term ends in May
Asia stock indexes and currencies
at 0436 GMT
COUNTRY FX RIC FX FX INDE STOCKS STOCKS
DAILY % YTD % X DAILY YTD %
%
Japan -0.10 -2.42 <.N2 -0.12 5.38
25>
China <CNY=CFXS -0.23 +0.41 <.SS 0.10 6.62
> EC>
India -0.04 -0.04 <.NS 0.13 -1.32
EI>
Indonesi -0.13 +2.57 <.JK -0.01 0.63
a SE>
Malaysia -0.05 -0.68 <.KL 0.07 -1.41
SE>
Philippi -0.05 +1.24 <.PS 0.21 2.93
nes I>
S.Korea <KRW=KFTC -0.14 -2.45 <.KS 0.21 10.01
> 11>
Singapor -0.13 +0.18 <.ST -0.09 1.67
e I>
Taiwan -0.11 +1.00 <.TW -0.05 9.94
II>
Thailand -0.74 -0.14 <.SE -0.09 -0.75
TI>
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Graphic: World FX rates Asian stock markets ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Himanshi Akhand in Bengaluru; Editing by Simon Cameron-Moore)
