*
BI holds rates, BSP cuts
*
Thai baht gains 0.5%
*
South Korean shares climb to a record high
(Updates for afternoon trade)
By Rajasik Mukherjee
Feb 19 (Reuters) - Asian currencies slipped on Thursday,
with the Indonesian rupiah and the Philippine peso unchanged
after central bank policy decisions, while the South Korean
shares surged to ?a fresh record high.
The policy decisions did little to ?stir markets, with both
the central banks playing a straight bat: Bank Indonesia held
rates steady and the Philippine central bank delivered a
25-basis-point ?cut, both in line with expectations.
The Indonesian rupiah was down 0.1% ahead of the
decision and ?held those losses after Bank Indonesia stood pat,
while the Philippine peso stuck ?to a 0.2% fall.
"Bank ?Indonesia's decision to hold rates signals a continued
focus on rupiah stability, but with IDR still near recent lows,
the currency is ?likely to remain sensitive to global risk
sentiment," said Glenn ?Yin, director of research at AC Capital
Market.
The BSP's cut reinforces its pro-growth stance, but the move
could keep the peso under mild pressure in the near term ?as
policy divergence and external volatility weigh on ?EM
currencies, Yin said.
Trading ?volumes improved on Thursday as most Asian markets
reopened after the Lunar New Year holidays, though China and
Taiwan markets stayed shut.
Overnight, investors assessed minutes from the Federal Open
Market Committee, ?which indicated policymakers were in no rush
to cut interest rates, with several members open ?to further
hikes if inflation remains persistent.
"(The 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.
The South Korean ?won pared ?some of its earlier
losses to trade 0.2% lower, while the Malaysian ?ringgit
fell 0.4%, touching its weakest level in a week.
The Thailand baht was the lone currency trading ?in
the green, appreciating 0.5%.
Most regional stock markets were trading higher, 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 3% 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 1.3% to a one-week high.
Malaysian stocks rose 0.6% while ?stocks in Jakarta
shed 0.6%.
HIGHLIGHTS:
** South Korean court hands life term to ex-President Yoon
in insurrection trial
** Indonesia, US firms sign $38.4 billion in trade,
investment deals
** IMF keeps China 2026 GDP forecast at 4.5% but ?warns of
risks to growth
Asia stock indexes and ?currencies at 0758 GMT
COUNTRY FX RIC FX FX YTD % INDEX STOCKS STOCKS
DAILY % DAILY YTD %
%
Japan -0.15 +1.03 China >
India - -0.88 Indonesia -0.08 -1.24 Malaysia -0.31 +3.73 Philippin -0.18 +1.41 0.19 5.85
es
S.Korea >
Singapore -0.02 +1.46 1.33 7.70
Taiwan - -0.25 Thailand +0.50 +1.08 (Reporting by Rajasik Mukherjee in Bengaluru; ?Editing by Sherry
Jacob-Phillips and Mrigank Dhaniwala)
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