*
Thailand's baht falls 0.3%, Philippine peso up 0.2%
*
Stocks in Malaysia down 0.5%, S.Korean shares up 0.3%
*
Markets in Indonesia closed
By Harish Sridharan April 19 (Reuters) - Asian markets were largely subdued on Wednesday, with both stocks and currencies recording small moves as traders look for fresh clues on the future path for interest rates in the United States. The Philippine peso and Malaysian ringgit edged up 0.2% and 0.1%, respectively. On the other hand, Thailand's baht slipped 0.3%. The dollar index ticked up 0.04% to 101.76 in Asian trading.
St. Louis Fed chief James Bullard told Reuters that the Fed should continue raising interest rates to subdue persistent inflation. Atlanta Fed President Raphael Bostic said he expects just one more quarter point hike, followed by an extended pause. "The market is currently pricing in near certainty of a 25 basis point hike, but there is really a lot of uncertainty about what follows afterwards," said Alvin Tan, head of Asia foreign exchange strategy at RBC Capital Markets. Investor uncertainty seeped through share markets as well. Stocks in the region largely declined, with equities in Kuala Lumpur and Manila falling 0.4%.
Shares in Shanghai and Hong Kong both declined a day after China reported higher-than-expected first-quarter growth but with some data pointing toward uneven recovery trends.
Thailand's central bank expects average headline inflation of 2.6% over the next 12 months, within its target range of 1% to 3%, it said in an open letter to the finance ministry. In March, headline inflation cooled to 2.83%, returning to within the target range for the first time in 15 months. On Tuesday, Indonesia's central bank kept interest rates unchanged for a third consecutive meeting, predicting headline inflation would be back within its target sooner and after the rupiah strengthened significantly. The rupiah is the best-performing currency in Asia this year, rising nearly 5%. Markets in Indonesia were closed on Wednesday. Emerging markets such as South Korea, Singapore and India also recently paused sustained policy tightening campaigns as growth concern took precedence over high inflation. "A combination of the Fed's imminent pause after May, along with a growing conviction that the U.S. dollar appears to have peaked is giving regional central banks room to turn away from hiking rates and support growth instead," Tan said.
HIGHLIGHTS
** Malaysia's March exports fall 1.4% year-on-year
** Thai January-February rice exports up 38% y/y at 1.4 mln
t - government official
** Indian rupee hits one-week low
Asia stock indexes and currencies at 0337 GMT
COUNTRY FX RIC FX FX INDEX STOCK STOCK
DAILY YTD % S S YTD
% DAILY %
%
Japan -0.16 -2.38 -0.40 9.39
China <CNY=CFX -0.02 +0.32 -0.21 9.61
S>
India -0.11 +0.72 -0.10 -2.56
Indonesia - +4.89 - -0.42
Malaysia +0.07 -0.65 -0.44 -4.65
Philippines +0.18 -0.68 -0.44 -1.98
S.Korea <KRW=KFT +0.01 -4.10 0.26 15.26
C>
Singapore -0.05 +0.50 0.22 2.02
Taiwan -0.01 +0.59 -0.24 11.99
Thailand -0.28 +0.60 -0.22 -4.70
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Graphic: World FX rates Asian stock markets ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Harish Sridharan in Bengaluru; Editing by Christopher Cushing)
