*
Malaysia's ringgit hits lowest in over a month
*
South Korean won leads losses among Asian FX
*
Malaysia GDP growth ahead of estimates
By Mehr Bedi May 12 (Reuters) - Asian stock markets and currencies fell on Friday, tracking losses in Wall Street after soft economic data from the United States and China fanned fears of a global slowdown. Most Asian currencies were weighed down by a firm dollar, whose strength analysts attributed to safe-haven demand amid renewed worries over U.S. regional banks. Data released overnight showed U.S. jobless claims jumped to a 1-1/2-year high last week, while producer prices rose at smallest annual increase in more than two years, hinting at a potentially sharper slowdown in the world's largest economy.
Markets are pricing in a 98% chance of the Fed standing pat in its June meeting and have started to price in deep cuts in interest rates by the end of the year, the CME FedWatch Tool showed. Rate futures contracts point to trader expectations for the Fed to start cuts in September. China released data earlier this week showing new bank loans tumbled sharply in April, consumer prices rose at the slowest in more than two years and imports unexpectedly contracted. The Shanghai SE Composite Index and Hong Kong benchmark index dipped 0.4% and 0.1% respectively, while the yuan lost 0.1%. A general election in Thailand on Sunday has cast uncertainty over market there. Thai Stocks lost 0.9%, while the baht eased 0.2%. Many observers expect Sunday's vote to result in the Pheu Thai party, led by Paetongtarn Shinawatra - the daughter of ex-Prime Minister Thaksin Shinawatra - scrambling to form a coalition with other opposition parties to end the military's domination of politics. "Based on the baht's behaviour in past election cycles, we expect further range trading before a mild appreciation in the week of the election, followed by a post-election bounce," said Jennifer Kusuma, Senior Rates Strategist at ANZ Research. Southeast Asia's second-largest economy is also due to post its macroeconomic growth data next week. Amalysts polled by Reuters expect the data to show growth picked up in the first quarter aided by revival in tourism and a rebound in private consumption, a Reuters poll found. Elsewhere in the region's currency markets, the South Korean won weakened by 0.5%, while the Malaysian ringgit lost 0.3%. Malaysia's stock market gained 0.2%, however, as the country reported first-quarter gross domestic product grew 5.6%, beating analysts expectations. South Korean shares had declined by midday on Friday and were set for a fourth consecutive weekly decline.
HIGHLIGHTS:
** Japan core CPI likely re-accelerated in April despite
energy subsidies, according to a Reuters poll
** Biden, McCarthy debt ceiling meeting postponed, spending
cuts on table
** Indonesian 10-year benchmark yields are down 3.9 basis
points at 6.39%
COUNTRY FX RIC FX FX INDE STOCKS STOCKS
DAILY % YTD % X DAILY YTD %
%
Japan +0.00 -2.55 <.N2 0.89 12.61
25>
China <CNY=CFXS +0.06 -0.66 <.SS -0.40 6.70
> EC>
India -0.03 +0.73 <.NS -0.30 0.75
EI>
Indonesi -0.17 +5.56 <.JK -0.48 -1.85
a SE>
Malaysia -0.27 -1.61 <.KL 0.17 -4.54
SE>
Philippi +0.01 -0.15 <.PS -0.98 0.67
nes I>
S.Korea <KRW=KFTC -0.46 -5.10 <.KS -0.32 11.03
> 11>
Singapor +0.02 +0.63 <.ST -0.82 -1.49
e I>
Taiwan -0.06 -0.16 <.TW 0.11 9.86
II>
Thailand -0.22 +2.07 <.SE -0.97 -6.98
TI>
(Reporting by Mehr Bedi in Bengaluru; editing by Simon Cameron-Moore)
