*
Indonesia's rupiah set to record 3.8% quarterly rise
*
Indian rupee on track to mark best quarter since Q4 2020
*
Seoul shares set for biggest quarterly gain in over two
years
By Upasana Singh March 31 (Reuters) - Asian currencies and stock markets advanced on Friday, as investor focus shifted from worries about the global banking system to key U.S. inflation data due later in the day, expected to give a fresh reading on the Fed's monetary policy plans.
Most currencies in the region were also set to end the quarter on a positive note, with Indonesia's rupiah on track to record a 3.8% rise.
The rupiah strengthened 0.5% on Friday to hit a near two-month high. "In the near term, the rupiah could get more of a lift if there is further dollar weakness. There could also be more foreign buying into Indo bonds if the Fed keeps softening its stance," Maybank analysts said in a note. Analysts at ANZ said high coal prices have helped maintain positive export growth in Indonesia, adding that the rupiah remains their preferred high-yield currency in the region. Malaysia's ringgit and the South Korean won rose 0.3% each.
The Indian rupee appreciated 0.2% and was set to
snap five quarterly losses.
Weakness in the dollar, which is tracking towards a second
consecutive quarterly loss, boosted investors' appetite for
riskier Asian assets. Markets are awaiting the February reading for the personal
consumption expenditures price index (PCE) from the U.S.,
the metric by which the Fed measures its 2% inflation target,
due later in the day.
"Big focus on core PCE where consensus expects it to
decelerate on sequential terms. A faster deceleration should
reinforce the disinflation story and support the tamer Fed
profile narrative. This can further boost risk sentiments," OCBC
analysts wrote in a note.
Meanwhile, Philippine's central bank said annual inflation
in March was expected to come in between 7.4% and 8.2%, ahead of
the release of the data on April 5.
The Bangko Sentral ng Pilipinas last week raised its
benchmark interest rate by 25 basis points and said its next
policy move would depend largely on how consumer prices will
behave in the coming months.
Manila's stock market declined 1.3% to be the only outlier in the region. Equities in Shanghai edged 0.2% higher. The yuan rose 0.1%, following better-than-expected manufacturing data and upbeat official comments on the country's economic outlook. Stocks in Seoul climbed 0.9% and were set for their biggest quarterly gain in more than two years. India shares jumped 0.9% but the benchmark was down 4.8% for the quarter.
HIGHLIGHTS:
** Thailand's economy is expected to grow by 3.6% this year,
up from 2.6% last year, according to the World Bank
** Japan's government said it plans to restrict exports of
23 types of semiconductor manufacturing equipment, aligning its
technology trade controls with a U.S. push to curb China's
ability to make advanced chips
The following table shows rates for Asian currencies against
the dollar at 0527 GMT.
COUNTRY FX RIC FX FX INDE STOCKS STOCKS
DAILY % YTD % X DAILY YTD %
%
Japan -0.23 -1.39 <.N2 0.92 7.45
25>
China <CNY=CFXS +0.09 +0.52 <.SS 0.20 5.78
> EC>
India +0.16 +0.63 <.NS 0.92 -4.80
EI>
Indonesi +0.50 +3.97 <.JK -0.02 -0.62
a SE>
Malaysia +0.29 -0.16 <.KL 0.05 -4.69
SE>
Philippi +0.21 +2.54 <.PS -1.25 -0.08
nes I>
S.Korea <KRW=KFTC +0.31 -2.36 <.KS 0.85 10.62
> 11>
Singapor -0.01 +0.92 <.ST 0.18 0.36
e I>
Taiwan +0.10 +0.91 <.TW 0.19 12.32
II>
Thailand +0.00 +1.44 <.SE 0.16 -3.64
TI>
(Reporting by Upasana Singh in Bengaluru; Editing by Nivedita
Bhattacharjee)
