*
Philippine peso hits nearly two-week low
*
Equities in Singapore lead losses
*
US CPI data in spotlight
By Navya Mittal May 9 (Reuters) - Asian currencies inched down on Tuesday, while shares were range-bound after a loan survey showed credit conditions in the U.S. were less gloomy than expected, while investors also awaited U.S. inflation data for clarity on interest rate hikes.
The Philippine peso and Indonesian rupiah led the losses in the region, weakening 0.7% and 0.4% each, while the Malaysian ringgit and Singapore dollar slipped marginally.
The closely-watched U.S. Federal Reserve's quarterly Senior
Loan Officer Opinion Survey on Monday hinted that Fed's
aggressive rate hikes led to tighter U.S. credit condition
rather than severe banking sector stress.
Investors are now focussed on the U.S. inflation data due on
Wednesday after Fed chair Jerome Powell said last week that
interest rate policy decisions will be "driven by incoming
data", while signalling a likely pause in its rate hiking cycle.
The Philippine peso fell to its lowest in nearly two weeks
after its trade deficit widened in March compared to last month.
Malaysian shares fell 0.3%, even as the country's
industrial production in March rose more than expected. The
region is due to post its first-quarter GDP forecast on Friday.
"We continue to expect weaker growth momentum in Q2 and H2
2023 as external demand worsens and domestic demand strength
moderates. This will give BNM room to remain on hold for the
rest of the year," OCBC analysts wrote in a note.
Bucking the trend, the Thai baht appreciated 0.3%,
boosted by a rebound in gold prices as sales of the metal in
U.S. dollars and subsequent conversion into the local currency
pushed the baht higher.
Poon Panichpibool, market Strategist at Krung Thai Bank,
cited foreign inflows into the region due to the attractiveness
of Thai shares and "flows related to profits-taking on gold,"
driving the strength in the baht.
Households in Thailand invest a lot in gold and typically
sell it whenever prices go up. The gold sold is then exported.
Shares in Malaysia and Singapore led losses among their Southeast Asian peers, while the Philippine benchmark was marginally higher.
In China, shares and the yuan fell as trade data showed an unexpected decline in imports and slower exports growth, underlining the struggles facing the world's second-biggest economy despite the lifting of COVID curbs in December.
Highlights
** Singapore firms scramble to soften blow of soaring rent
costs
** After opening borders, China presses Singapore for
visa-free travel deal
** Indonesia GDP growth seen remaining strong - Finmin Asia stock indexes and currencies at
0641 GMT
COUNTRY FX RIC FX DAILY FX YTD INDEX STOCKS STOCKS
% % DAILY % YTD %
Japan +0.26 -2.69 <.N22 1.01 13.71
5>
China -0.12 -0.34 <.SSE -1.00 8.80
C>
India -0.26 +0.87 <.NSE 0.37 1.25
I>
Indonesia -0.41 +5.49 <.JKS -0.05 -1.24
E>
Malaysia -0.07 -0.86 <.KLS -0.29 -4.41
E>
Philippin -0.68 +0.04 <.PSI 0.09 0.62
es >
S.Korea -0.19 -4.49 <.KS1 -0.13 12.24
1>
Singapore -0.02 +1.14 <.STI -0.35 -0.15
>
Taiwan -0.09 +0.03 <.TWI 0.18 11.25
I>
Thailand +0.30 +2.63 <.SET 0.27 -6.13
I>
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Graphic: World FX rates Asian stock markets Philippine trade deficit ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Navya Mittal in Bengaluru; Editing by Christian
Schmollinger and Rashmi Aich)
