*
Malaysian ringgit emerges as bright spot among peers
*
Philippines posts widest trade deficit in five months
*
U.S. likely to report higher inflation print
By Navya Mittal March 14 (Reuters) - Most Asian currencies and equities lost ground on Tuesday as the U.S. banking sector crisis unnerved investors, although the Malaysian ringgit bucked the trend to climb higher. U.S. regional bank shares saw heavy selling overnight following the shutdown of Silicon Valley Bank and Signature Bank .
"Investors will closely watch the U.S. CPI (consumer price index) reading released tonight, though it is likely to take a back seat to the current banking crisis," analysts at OCBC Bank said in a note.
The CPI for February is expected to rise 0.4% on a month-over-month basis, and 6% annually, according to a Reuters poll. The data has taken on added relevance in recent days following the turmoil in the banking sector and could further complicate views on Federal Reserve's stance on rate hikes. The Thai baht and Singapore dollar traded marginally lower, while the South Korean won lost 0.7%. The Indonesian rupiah weakened 0.1%. The country's central bank is expected to hold interest rates at 5.75% at its meeting on Thursday despite inflation remaining high. Equities in the region tracked Wall Street lower, with benchmarks in Indonesia , Malaysia and Thailand slipping more than 1%.
Philippine stocks were down nearly 1% and the peso edged 0.07% higher after the country posted its widest trade deficit in five months for January. Meanwhile, the Malaysian ringgit was the top gainer in the region, rising 0.3%.
Investors seem to be more relieved about the pace of rising prices in the country after the central bank held rates at 2.75% last week, said Poon Panichpibool, markets strategist at Krung Thai Bank.
"Once the market reprices the Fed hike, there would be less of a spread between policy rate in Malaysia and the U.S., so that's likely to support the Malaysian ringgit compared with other emerging Asia forex," Panichpibool added.
Elsewhere in the region, stocks in China and its local unit lost 0.4% and 0.3%, respectively.
The People's Bank of China is set to inject more liquidity when rolling over maturing medium-term policy loans for a fourth straight month on Wednesday, while keeping the interest rate unchanged, to support the economy, a Reuters survey showed.
Highlights
** Russian c.bank to hold rate at 7.5% this week, maintain
hawkish rhetoric
** Philippine banks not exposed to Silicon Valley Bank
-cbank governor
** Indonesian 10-year benchmark yields are down 7 basis
points at 6.823%
Asia stock indexes and currencies at 0641 GMT
COUNTRY FX RIC FX FX INDEX STOCK STOCKS
DAILY YTD % S YTD %
% DAILY
%
Japan -0.37 -1.92 -2.19 5.85
China <CNY=CFX -0.29 +0.48 -0.42 5.37
S>
India -0.29 +0.44 -0.62 -5.84
Indones -0.13 +1.20 -1.67 -2.59
ia
Malaysi +0.34 -1.72 -1.47 -6.32
a
Philipp +0.07 +1.33 -1.35 -1.68
ines
S.Korea <KRW=KFT -0.71 -3.55 -2.56 5.03
C>
Singapo -0.07 -0.53 -0.21 -3.86
re
Taiwan +0.13 +0.32 -1.29 8.65
Thailan -0.09 +0.29 -1.29 -6.95
d
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Graphic: World FX rates Asian stock markets ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Navya Mittal in Bengaluru; Editing by Edwina
Gibbs and Eileen Soreng)
