*
Indonesia's rupiah on track to post 0.6% drop this week
*
Philippine stocks set to mark six straight week of losses
*
China's annual parliament session takes places on Sunday
By Upasana Singh March 3 (Reuters) - Asian currencies advanced on Friday as the U.S. dollar eased and investors looked towards China's annual legislative meeting this weekend for further clues on the state of the world's second-largest economy.
The Philippine peso , among the best performing currencies in the region so far this year, rose 0.4%. South Korea's won strengthened 0.9% and India's rupee appreciated 0.4%. Indonesia's rupiah fell 0.3% to be the only dull spot in the region.
Markets are keenly awaiting China's annual parliament, due to take place on Sunday, that will implement the biggest government reshuffle in a decade and set economic targets. Recent data from China suggests that economic recovery is steady in Southeast Asia's biggest trading partner following the easing of strict COVID-19 curbs in December - boosting investors' appetite for riskier Asian assets. "A higher growth target can nudge China's growth back to its potential path," analysts at ANZ said in a note.
"Government officials still hold the view that China's potential growth is in the 5%-6% range. Our calculation suggests that a growth rate of 5.5% can return China's GDP (gross domestic product) index to its potential path by the end of this year." Among the latest string of strong data, the country's services sector expanded at the fastest pace in six months in February, driving a solid increase in employment.
The yuan rose 0.2% and was set to mark its best week since January. Stocks in Shanghai inched 0.2% higher.
The dollar index , which measures the greenback against six major peers, fell 0.1% to 104.87. Atlanta Federal Reserve President Raphael Bostic said on Thursday that he favoured "slow and steady" interest rate hikes by the central bank to reduce the risk of damaging the economy.
"Recent comment from Fed officials just reaffirm market's views of more rate hikes at +25bps (basis points) pace which has been largely priced-in," said Poon Panichpibool, markets strategist at Krung Thai Bank. "Hence, it did result in less severe selling pressures on Asian FXs." Most stock markets in the region tracked Wall Street higher, with equities in Manila climbing 0.7%. Singapore's benchmark index advanced 0.3% and Seoul shares rose 0.1%. Separately, Indonesia's poll body on Thursday vowed to forge ahead with organising next year's presidential election, defying a surprise ruling by a district court to halt all election processes for more than two years. Equities in Jakarta shed 0.2%.
HIGHLIGHTS:
** Bank Indonesia sold $15 million of term deposits to
exporters via agent banks, in its first auction of the
instrument aimed at persuading exporters to keep their proceeds
at home longer and shoring up foreign exchange reserves
** China's reopening is set to boost emerging market
currencies against the U.S. dollar over the next six months,
primarily for those that export commodities to the world's
second-largest economy - Reuters poll
The following table shows rates for Asian currencies against
the dollar at 0355 GMT.
COUNTRY FX RIC FX FX INDE STOCKS STOCKS
DAILY % YTD % X DAILY YTD %
%
Japan +0.04 -4.09 <.N2 1.42 6.88
25>
China <CNY=CFXS +0.18 -0.10 <.SS 0.17 7.35
> EC>
India +0.39 +0.55 <.NS 0.00 -4.33
EI>
Indonesi -0.26 +1.63 <.JK -0.24 -0.14
a SE>
Malaysia +0.02 -1.61 <.KL -0.13 -2.80
SE>
Philippi +0.36 +1.48 <.PS 0.71 1.57
nes I>
S.Korea <KRW=KFTC +0.89 -3.03 <.KS 0.14 8.71
> 11>
Singapor +0.02 -0.53 <.ST 0.33 -0.18
e I>
Taiwan +0.00 +0.26 <.TW 0.37 10.74
II>
Thailand +0.03 -0.59 <.SE -0.13 -3.48
TI>
(Reporting by Upasana Singh in Bengaluru; Editing by Stephen
Coates)
