*
S.Korean won, Malaysian ringgit lead regional losses
*
BI and BSP rate decisions due later in the day
*
South Korean shares climb to a record high
By Rajasik Mukherjee
Feb 19 (Reuters) - Asian currencies slipped on Thursday,
led by the South Korean won and Malaysian ringgit, as a mildly
hawkish interpretation of the U.S. Federal ?Reserve minutes and
upcoming rate decisions in Indonesia and the Philippines ?kept
investors cautious.
Trading volumes improved as most Asian markets reopened
after the holidays, although China and Taiwan remained closed.
Overnight, investors assessed minutes from the Federal ?Open
Market Committee (FOMC), which indicated policymakers were in no
rush to cut interest rates, with several members open ?to further
hikes if inflation remains persistent.
"(FOMC minutes) raised the prospect that rates ?may not be
cut as much ?as previously thought ... If this becomes a trend,
that's a big reason to be bullish on the US dollar and bearish
on Asia ?FX," said Kyle Rodda, senior financial analyst at
Capital.com.
MSCI's emerging ?market currency index shed
0.2%, touching its lowest level since February 11.
The South Korean won weakened 0.5% to a one-week
low, while the Malaysian ringgit fell 0.4%, also touching
its weakest ?level in a week.
"The Korean won and Indonesian ?rupiah are leading ?losses as
carry trades unwind and persistent capital outflows amplify
downside pressure," said Glenn Yin, director of research at AC
Capital Market.
In line with the broader weakness across Asian currencies,
the Indonesian rupiah declined ?0.3%, hitting its lowest
point since January 21.
Investors will be looking at Bank Indonesia's interest rate
decision, ?due later in the day, where the central bank is
broadly expected to hold rates steady for a fifth consecutive
meeting.
"For BI, the tone of the statement will be important given
the continued mixed views among participants emerging from the
FOMC minutes and recent Indonesia-related macroeconomic
headlines," said Lavanya Venkateswaran, senior ASEAN economist
at OCBC Bank.
The Philippine central ?bank is ?also due to deliver its
policy decision later in the day, with markets expecting ?a
25-basis-point rate reduction. The Philippine peso was
flat ahead of the meeting.
Most regional stock markets were trading in ?the green, with
the MSCI gauge of emerging Asian equities rising
0.6%, hitting its highest level in nearly a week.
South Korean stocks led regional gains, rising 2.7%
to a record high, supported by strong advances in index
heavyweights.
Thai stocks climbed more than 1% to hit their
highest point since early November 2024, while stocks in
Singapore gained as much as 1.2% to touch a one-week
high.
"Equities are benefiting from renewed risk appetite as
investors focus on resilient earnings and structural growth
themes like AI, even ?as currencies soften," AC Capital's Glenn
said.
Malaysian stocks rose 0.5% while stocks in Jakarta
gained 0.4%.
HIGHLIGHTS:
** Indonesia, US firms sign over $7 billion in trade,
investment deals
** Two-thirds of Japan firms concerned about PM Takaichi's
fiscal discipline
** ECB President Lagarde ?plans to quit before Macron's term
ends, FT ?reports
Asia stock indexes and currencies at 0354 GMT
COUNTRY FX RIC FX FX YTD INDEX STOCKS STOCKS
DAILY % % DAILY YTD %
%
Japan -0.10 +1.08 0.71 14.34
China India Indonesia -0.27 -1.48 0.53 -3.39
Malaysia -0.38 +3.65 0.53 4.19
Philippines -0.08 +1.51 0.31 5.98
S.Korea Singapore -0.04 +1.44 1.00 7.35
Taiwan Thailand (Reporting by Rajasik ?Mukherjee in Bengaluru; Editing by Sherry
Jacob-Phillips)
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