*
Philippine peso breaks four-day losing streak
*
U.S. inflation data in focus
*
South Korean stocks hit over 7-month high
By Navya Mittal April 11 (Reuters) - Most Asian currencies and equities inched up on Tuesday ahead of a key U.S inflation data for more clarity on the Federal Reserve's interest rate hike path, while China's consumer inflation slowed to an 18-month low.
The Thai baht and Philippine peso led the gains, firming 0.2% and 0.1%, respectively, while stocks in the region also climbed. Equities in India and Taiwan were among the top gainers. Investors are now focused on U.S. inflation data on Wednesday for clues on the likelihood of more Fed rate hikes. Fed official John Williams said on Monday he expected inflation to ease to 3.75% this year and likely fall to the central bank's 2% target by 2025. The Bank of Korea (BOK) held interest rates steady for a second consecutive meeting, as widely expected. Shares in Seoul hit more than a seven-month high, climbing 1.4%. "Case for a further rate hike has weakened given the economic slowdown, banking sector risks and expectation that U.S. Fed Funds Rate will soon peak which will give BOK greater policy space to consider domestic conditions which include its key priorities such as inflation and financial stability," UOB Economist Ho Woei Chen wrote in a note.
China's benchmark stock index , however, slipped 0.3%, as consumer inflation in March rose at the slowest pace since September 2021. "We expect headline CPI inflation to accelerate modestly in the coming months on an economic rebound, though it should remain well below the PBOC's 3% target. PPI deflation may continue in the coming months," Goldman Sachs analysts said.
Manila's benchmark stock index was flat, while the peso rose after the Philippines posted its smallest trade deficit in three months in February. The local currency had fallen in each of the four previous sessions. In Kuala Lumpur, the Malaysian ringgit declined for the third straight session, weakening 0.1% despite the country's industrial output in February beating expectations, with a 3.6% rise.
Analysts at Barclays said strong industrial production data in February suggests that earlier Lunar New Year festivities might have exaggerated the weakness in January. They maintain their base case for another 25 basis point rate hike in July in the region.
Highlights
** Indonesian 10-year benchmark yields fall 1.8 basis points
at 6.68%
** India's overnight swap market pricing in rate cuts before
2023 end
** Thai consumer confidence at 3-year high in March Asia stock indexes and currencies
at 0629 GMT
COUNTRY FX RIC FX FX INDE STOCKS STOCKS
DAILY % YTD % X DAILY YTD %
%
Japan +0.19 -1.68 <.N2 1.28 8.58
25>
China <CNY=CFXS -0.03 +0.21 <.SS -0.31 6.98
> EC>
India -0.13 +0.77 <.NS 0.35 -2.32
EI>
Indonesi +0.17 +4.65 <.JK 0.02 -1.14
a SE>
Malaysia -0.11 -0.29 <.KL 0.11 -4.40
SE>
Philippi +0.11 +1.78 <.PS -0.05 -1.24
nes I>
S.Korea <KRW=KFTC -0.08 -4.26 <.KS 1.40 13.90
> 11>
Singapor +0.11 +0.67 <.ST -0.01 1.32
e I>
Taiwan -0.09 +0.75 <.TW 0.24 12.56
II>
Thailand +0.23 +0.86 <.SE 0.00 -4.52
TI>
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Graphic: World FX rates Asian stock markets ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Navya Mittal in Bengaluru; Editing by Rashmi
Aich)
