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BI, BSP rate decisions due on Feb. 19
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Thai stocks hit highest since Nov. 2024
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China, South Korea, Taiwan, Singapore, Malaysia closed
By Rajasik Mukherjee
Feb 18 (Reuters) - Emerging Asian currencies weakened on
Wednesday and equities moved narrowly in thin holiday-curbed
trade, with the rupiah under ?pressure a day ahead of Bank
Indonesia's policy meeting.
Volumes were ?thin across the region with markets in China,
South Korea, Taiwan, Malaysia, and Singapore all closed for
holidays.
"Asian FX softness today ?is largely a function of thin,
holiday-hit liquidity, which has made regional currencies more
vulnerable to ?even modest order flows," said Ruben Carlo
Asuncion, chief economist at ?Union Bank of the ?Philippines.
"The rupiah remains under pressure amid lingering fiscal
concerns and sensitivity to dollar moves."
The Indonesian rupiah, one of the ?region's few
actively traded currencies on the day, depreciated ?0.3%, after
it resumed trading following a long holiday-weekend.
A Reuters Poll showed that Bank Indonesia (BI) would most
likely stand pat on rates for a fifth ?straight meeting, as the
rupiah comes under renewed ?pressure.
The currency has ?lost just over 1% in 2026, making it the
region's worst performing currency so far this year.
Indonesian stocks rose 1% on the back of stronger moves
across ?the industrials and utilities sectors, which gained over
2% each.
The Philippine central bank's rate ?decision is also due
February 19. The market sees the central bank lowering rates by
25 basis points, where they are expected to stay for the rest of
the year.
"What will matter for markets is the forward guidance...A
steady, predictable tone would keep USD/PHP trading within its
recent range, ?with ?the larger FX impulse coming only if guidance
turns unexpectedly dovish," added ?Ruben Carlo.
The Philippine peso had fallen around 0.2% in early
trade but pared losses to trade ?flat, while equities were 0.2%
higher.
The Singapore dollar, the Thai baht, and the
Indian rupee all also traded flat.
Stocks in Thailand rose 0.4% to touch their highest level
since November 19, 2024. The benchmark index has been on a hot
run after election results earlier this month, which stoked
investor optimism on hopes of political stability.
Elsewhere in the region, stocks in India were down
0.2%, while those in Japan ?traded over 1% higher.
HIGHLIGHTS:
** Iran foreign minister says progress made in nuclear talks
with US in Geneva
** Cambodian PM says Thailand is occupying territory after
Trump-brokered ceasefire
** New Zealand keeps rates steady, ?sees loose policy for
some time
Asia stock ?indexes and currencies at 0453 GMT
COUNTRY FX RIC FX FX INDEX STOCKS STOCKS
DAILY YTD % DAILY YTD %
% %
Japan -0.19 +2.01 China C>
India I>
Indonesia -0.30 -1.21 Malaysia - +4.05 Philippines 0.10 +1.67 S.Korea 1>
Singapore -0.08 +1.76 Taiwan I>
Thailand I>
(Reporting by Rajasik Mukherjee ?in Bengaluru; Editing by
Ronojoy Mazumdar)
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