*
Singapore dollar, Philippine peso snap four-month winning
streak
*
Thai baht on track to lose 6.4% for the month
*
Thailand's economy seen growing between 3%-4% this year -
c.bank
*
Markets in Taiwan closed for a public holiday
By Upasana Singh Feb 28 (Reuters) - Asian currencies and stocks were mixed on Tuesday as fears persisted over prospects of further interest rate hikes by the U.S. Federal Reserve, while the Thai baht was set to record its worst month in 23 years.
The Philippine peso appreciated 0.6%, although it was set to snap a four-month winning streak. Indonesia's rupiah firmed 0.2%, while Malaysia's ringgit fell 0.2%. The baht weakened by 0.5%. The currency is down 6.4% for February, its biggest monthly drop since September 1999.
The country's economy is seen growing between 3%-4% this year and inflation, currently at 5.02%, is expected to return to within the central bank's target range of 1%-3% in the second half of 2023, according to the Bank of Thailand.
Meanwhile, a series of upbeat economic data from the United States has reinforced the strength of the world's largest economy and bolstered expectations that the Fed will become more aggressive in lifting interest rates.
Markets are now expecting a third 25 basis point hike this year from the Fed and see rates peaking at 5.4% by September. "Inflation in the U.S. is proving to be stickier than expected, contrasting with many Asian economies where inflationary supply shocks from energy and food have faded," said Michael Loh, Asia FX strategist at BNP Paribas. "In turn, this is driving divergence of monetary policy both versus the U.S., as well as within the region."
Since January, most central banks in Southeast Asia have dialled back their policy tightening, with Malaysia's central bank unexpectedly pausing, the Philippine central bank signalling one more rate hike this year, and the Bank of Thailand hinting at measured tightening ahead. The dollar index , which measures the greenback against six peers, rose 0.2% to 104.81, eyeing a monthly gain of more than 2.5%, its first since September. "While the U.S. dollar may be supported for now as markets re-price a higher peak, we retain the view that the upside for the dollar may be limited as Fed tightening goes into late cycle," OCBC analysts said in a note.
Among the region's equity markets, stocks in Manila advanced 0.7% to lead gains. Singapore's benchmark index rose 0.4%, while stocks in Jakarta and equities in Kuala Lumpur shed 0.1% each.
HIGHLIGHTS:
** Thailand's manufacturing production index in January
dropped by a slightly less-than-expected 4.35% from a year
earlier as global slowdown hurt exports
** Markets await India's Q3 GDP data for fiscal year
2022-23, forecast 4.6% y/y vs 6.3% prior
** Incoming Bank of Japan Deputy Governor Shinichi Uchida
brushed aside the chance of an immediate overhaul of ultra-loose
monetary policy
The following table shows rates for Asian currencies against
the dollar at 0615 GMT.
COUNTRY FX RIC FX FX INDE STOCKS STOCKS
DAILY % YTD % X DAILY YTD %
%
Japan -0.07 -3.81 <.N2 0.04 5.13
25>
China <CNY=CFXS +0.01 -0.61 <.SS -0.07 5.39
> EC>
India +0.17 +0.03 <.NS -0.17 -4.10
EI>
Indonesi +0.17 +2.14 <.JK -0.09 -0.03
a SE>
Malaysia -0.16 -1.85 <.KL -0.10 -2.77
SE>
Philippi +0.60 +0.89 <.PS 0.65 1.16
nes I>
S.Korea <KRW=KFTC -0.17 -4.58 <.KS 0.23 7.68
> 11>
Singapor -0.14 -0.65 <.ST 0.35 0.72
e I>
Thailand -0.54 -1.61 <.SE -0.18 -2.65
TI>
(Reporting by Upasana Singh in Bengaluru; editing by Eileen
Soreng)
