*
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 lower against a firm dollar on Tuesday after a U.S. loans survey revealed that credit conditions there were less gloomy than expected, while investors are also focusing on U.S. inflation for further clarity on rate hikes.
The Philippine peso and Indonesian rupiah led the losses in the region, weakening 0.4% and 0.3% each, while the Malaysian ringgit and Singapore dollar slipped marginally.
The closely-watched Federal Reserve's quarterly Senior Loan Officer Opinion Survey on Monday showed that the tightening of credit conditions in U.S. was likely due to the impact of the Fed's aggressive rate hikes rather than severe banking sector stress.
This had led to some market relief but this "borrowed relief" is hollow consolation in a high rates environment, reining in unadulterated optimism, said Vishnu Varathan, and economist at Mizuho Bank. Investors are also focused on U.S. inflation data that will be released on Wednesday after Federal Reserve chair Jerome Powell said last week that interest rate policy decisions will be "driven by incoming data," while signalling a likely pause in the rate hiking cycle. Elsewhere in the region, the Philippine peso fell to its lowest in nearly two weeks after its trade deficit widened in March compared to last month.
"The substantial trade gap means that the PHP should continue to underperform in the near term," analysts from ING wrote in a note.
Meanwhile, shares in Malaysia fell 0.3% even as the country's industrial production in March rose by more than expected. Bucking the trend in regional currencies, the Thai baht appreciated 0.4%, 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 shares in Thailand and "flows related to profits-taking on gold," driving the strength in the baht.
The country's ongoing elections have placed growing household debt in focus as Thailand has among the highest household debt to gross domestic product ratios in Asia, according to a Bank for International Settlements ranking, and millions of people, are trapped in debt.
Equities in the region were mixed with shares in Malaysia and Singapore leading losses among its Southeast Asian peers, while benchmark indexes in Indonesia and Philippines were marginally higher.
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
0417 GMT
COUNTRY FX RIC FX DAILY FX YTD INDEX STOCKS STOCKS
% % DAILY % YTD %
Japan +0.10 -2.85 <.N22 0.91 13.60
5>
China -0.09 -0.32 <.SSE 0.39 10.32
C>
India -0.12 +1.01 <.NSE 0.16 1.04
I>
Indonesia -0.34 +5.56 <.JKS 0.07 -1.11
E>
Malaysia -0.09 -0.88 <.KLS -0.25 -4.37
E>
Philippin -0.43 +0.29 <.PSI 0.07 0.60
es >
S.Korea +0.00 -4.31 <.KS1 -0.20 12.15
1>
Singapore +0.02 +1.18 <.STI -0.29 -0.09
>
Taiwan -0.01 +0.11 <.TWI -0.01 11.04
I>
Thailand +0.37 +2.70 <.SET 0.24 -6.15
I>
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Graphic: World FX rates Asian stock markets ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Navya Mittal in Bengaluru; Editing by Christian
Schmollinger)
