*
South Korea Q1 GDP grew 0.3% q/q
*
Equities in Seoul retreat 1.4%; won firms 0.2%
*
Indonesia closed for a holiday
By Himanshi Akhand April 25 (Reuters) - South Korean shares fell more than 1% on Tuesday after the country posted a slim first-quarter economic growth, with most other Asian emerging stock markets and currencies subdued as cautious traders awaited key central bank decisions.
Shares in Seoul fell 1.4%, declining for a fourth consecutive session. The won , however, reversed course and was last up 0.2% after multiple dealers said that South Korean foreign exchange authorities were suspected of selling dollars to support the won, soon after a senior official warned against increased volatility. South Korea's heavily trade-reliant economy barely averted a recession, and the outlook remained clouded by weak exports due to a cooling global economy. The country's gross domestic product (GDP) in the first quarter expanded by 0.3% over the previous three-month period, compared with an estimate of a median 0.2% rise according to a Reuters poll. "We see growing downside risks for the economy on the back of weak local housing markets and intensifying tensions between the US and China, thus a potential BoK (Bank of Korea) cut is still possible by the end of this year," analysts at ING said in a note.
Shares in Taiwan and Singapore retreated 1.6% and 0.7%, respectively. Markets in Indonesia were closed for a holiday. Meanwhile, markets are expecting the U.S. Federal Reserve to raise interest rates by another 25 basis points at its policy meeting next week.
Investors are also awaiting Bank of Japan's policy meeting this Friday. Governor Kazuo Ueda has stressed the need to keep monetary policy ultra-loose for now, but signalled the chance of raising interest rates if inflation and wage growth overshot expectations. Thailand's baht weakened 0.1% and stocks fell 0.6%. The finance ministry lowered its 2023 economic growth outlook to 3.6% from 3.8% projected earlier on expectations of a fall in exports as global demand weakens. The Philippine peso advanced 0.4%, a day after the country maintained its economic growth targets over the next five years. Malaysia's ringgit and the Indian rupee edged 0.2% and 0.1% lower, respectively. China shares fell for a fifth straight session and were last down 0.4%, while the yuan was 0.3% weaker.
Investors are also cautiously awaiting the April Politburo meeting this week, where a top decision-making body of the Communist Party discusses the economy.
HIGHLIGHTS
** Thai Finance Ministry raises forecast for foreign tourist
arrivals
** Sources told Reuters that China nudged banks this month
to cut deposit interest rates further
** Malaysian palm oil board sees higher exports to China
this year
Asia stock indexes and currencies
at 0708 GMT
COUNTRY FX RIC FX FX INDE STOCKS STOCKS
DAILY % YTD % X DAILY YTD %
%
Japan -0.02 -2.34 <.N2 0.09 9.68
25>
China <CNY=CFXS -0.27 -0.19 <.SS -0.35 5.65
> EC>
India -0.05 +0.95 <.NS 0.15 -1.85
EI>
Indonesi - +4.89 <.JK - -0.42
a SE>
Malaysia -0.20 -0.99 <.KL -0.03 -4.94
SE>
Philippi +0.32 +0.36 <.PS -0.08 0.41
nes I>
S.Korea <KRW=KFTC +0.20 -5.08 <.KS -1.37 11.30
> 11>
Singapor -0.15 +0.33 <.ST -0.74 1.49
e I>
Taiwan -0.13 +0.08 <.TW -1.64 8.72
II>
Thailand -0.09 +0.63 <.SE -0.57 -7.17
TI>
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Graphic: World FX rates Asian stock markets ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Himanshi Akhand in Bengaluru; Editing by Rashmi Aich)
