* BOT holds at 1.00%, as expected
* Thai stocks extend gains, baht weakens slightly
* Peso, rupiah trade near record lows
*
(Updates with afternoon trade)
By Nichiket Sunil
April 29 (Reuters) - Thai stocks extended gains on Wednesday after the
central bank kept the key interest rate unchanged as expected, while the
Indonesian rupiah and the Philippine peso traded at record lows as dwindling
hopes of a Middle East peace deal raised uncertainty over the net oil importing
nations' outlook.
The Philippine peso slid 0.9% to an all-time low of 61.06 per U.S.
dollar. The currency, which has fallen for eight straight sessions, is only
ahead of the Indian rupee - Asia's worst performing currency so far this
year.
The Indonesian rupiah traded at 17,320 per U.S. dollar, not far from
an all-time low of 17,335 per dollar hit earlier in the session.
Higher energy prices due to the Iran conflict have cloudedthe growth outlook
for net oil importing nations. For Indonesia, elevated fuel costs add to the
growing list of concerns among foreign investors, including worries about the
country's fiscal and governance health.
"The longer the standoff between the U.S. and Iran, the tighter the oil
market, and oil prices will have to be re-priced higher," said Christopher Wong,
a currency strategist with OCBC.
"Ultimately, this can weigh on Asia excluding-Japan momentum, especially for
oil-sensitive currencies, including the peso, rupiah, and baht."
Stocks in Thailand added minor gains after briefly pulling back as
the central bank held rates, as expected, at 1.00%, the lowest level in more
than three years. It had cut the rate at its previous meeting in February.
"It seems like the Bank of Thailand will likely be in wait-and-see mode as
staying on hold could mean the BOT has more flexibility to adjust its monetary
policy amidst the highly uncertain nature of the Middle East situation," said
Poon Panichpibool, markets strategist at Krungthai Bank.
Panichpibool expects the Middle East crisis to ease within the second
quarter, prompting the gradual recovery of transportation through the Strait of
Hormuz. The BOT could stay on hold through 2026 and 2027, he added.
The Thai baht, meanwhile, weakened to 32.62 per dollar, and has
lost 3.6% so far this year .
Stocks in the region traded mixed. Taiwan equities were last down
0.6%, cutting losses from earlier in the session, while South Korean stocks
continued their ascent, gaining 0.7% to trade near all-time high.
Singapore stocks fell 0.5% and were set for the sixth straight
session of losses, while equities in Manila climbed 0.7%, breaking a
five-session losing streak.
HIGHLIGHTS:
** South Korea exports seen rising sharply again in April on chip boom:
Reuters poll
** Big Chinese tech firms scramble to secure Huawei AI chips after
DeepSeek V4 launch, sources say
** Sinopec refinery utilisation drops, but chemical exports rise due to Iran
war
Asia stock indexes and currencies
at 0743 GMT
Japan -0.03 -1.88 15.60
-
China India -0.22 -5.15 1.36 -6.92
Indonesia -0.46 -3.59 0.14 -18.10
Malaysia +0.00 +2.71 -0.46 2.48
Philippines -0.94 -4.60 0.70 -2.40
S.Korea Singapore -0.02 +0.68 -0.45 4.72
Taiwan -0.13 -0.39 -0.55 35.70
Thailand -0.43 -3.60 0.75 18.39
(Reporting by Nichiket Sunil in Bengaluru; Editing by Sherry Jacob-Phillips and
Sonia Cheema)
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