Asia Archives - DigitalMedia

Asia FX Edges Higher, Korean Won Surges Even As BOK Holds

23Feb

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Asia

Asia FX Edges Higher, Korean Won Surges Even As BOK Holds

Most Asian currencies rose on Thursday, recovering a measure of recent losses as the dollar saw some profit taking, with the won appreciating sharply even as the Bank of Korea held interest rates after 18 months of hikes. The South Korean won rose 0.6% and was the best-performing Asian currency for the day, even as the BOK held interest rates at 3.50%, pausing a rate-hike cycle that began in late-2021. But BOK Governor Rhee Chang-yong signaled that the bank could raise rates higher to curb runaway inflation, which is trending close to levels seen during the 1998 Asian financial crisis. The BOK's pause comes amid weakening economic trends in South Korea, as a slowdown in Chinese demand and rising inflation weighed on local economic growth. Broader Asian currencies advanced, with the dollar ...

Asian Stocks Hit By Tech Rout, More Fed Cues Awaited

22Feb

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Asia

Asian Stocks Hit By Tech Rout, More Fed Cues Awaited

Most Asian stock markets sank on Wednesday tracking overnight losses on Wall Street, with technology-heavy indexes losing the most as caution kicked in ahead of the minutes of the Federal Reserve’s February meeting. Japan’s Nikkei 225, the Taiwan Weighted index, and South Korea’s KOSPI were the worst performers for the day, losing between 0.8% and 1.4%. Tech-heavy indexes bore the worst of the selling as U.S. Treasury yields surged overnight in anticipation of the Fed minutes, due later on Wednesday. Wall Street indexes also retreated overnight, with the Nasdaq Composite leading losses among its peers. The Fed minutes are widely expected to reiterate the central bank’s hawkish rhetoric, which is now expected to carry more weight in the light of stronger-than-expected inflation readings for...

Asian Stocks Muted Amid Fed Fears, China Buoyed By Stimulus Hopes

20Feb

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Asia

Asian Stocks Muted Amid Fed Fears, China Buoyed By Stimulus Hopes

Most Asian stocks kept to a tight range on Monday as markets awaited more cues on monetary policy from a slew of Federal Reserve events this week, while Chinese stocks rose sharply on the prospect of more stimulus spending by the government. China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose around 1% each after the People’s Bank held its key mortgage rates at historic lows. While the move disappointed some traders hoping for a cut, it still indicated that Beijing intends to keep monetary policy as accommodative as possible to boost economic growth. Gains in China spilled over to Hong Kong and Taiwan, with the Hang Seng and Taiwan Weighted indexes rising 0.7% and 0.4%, respectively. China’s move also comes shortly after the government reiterated its plans to increase sti...

Asia FX Rallies, Dollar Tumbles As Markets Bet on Fed Pivot

2Feb

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Asia

Asia FX Rallies, Dollar Tumbles As Markets Bet on Fed Pivot

Most Asian currencies rose sharply on Thursday, while the dollar sank to a nine-month low even after the Federal Reserve hiked interest rates, with markets betting that a U.S. economic slowdown will force the bank into reversing its hawkish stance this year. The Chinese yuan rose 0.4% and came close to a seven-month high against the dollar, while risk-heavy Southeast Asian currencies marked the biggest gains. The Philippine peso added nearly 1%, while the Malaysian ringgit and the Indonesian rupiah jumped 0.7% each. The Japanese yen rose 0.3% and traded near a nine-month high to the dollar, even as recent data pointed to more pressure on the Japanese economy. The Fed hiked interest rates as expected, and said that it plans to keep raising interest rates to curb elevated inflation. Fed Chai...

Asia FX Treads Water As Fed Meeting Looms, Dollar Inches Higher

1Feb

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Asia

Asia FX Treads Water As Fed Meeting Looms, Dollar Inches Higher

Most Asian currencies moved little on Wednesday in anticipation of a Federal Reserve meeting, while the dollar crept higher as markets positioned for an interest rate hike and a potentially hawkish message from the central bank. The dollar firmed slightly against a basket of currencies, with the dollar index and dollar index futures advancing about 0.1% each. The Federal Reserve is broadly expected to hike interest rates by 25 basis points, after U.S. inflation retreated over the past few months. But comments from Fed Chair Jerome Powell on the path of monetary policy will be closely watched, given that recent data signaled some resilience in the U.S. economy. Investors are also expecting Powell to address the recent rally in financial markets. A hawkish outlook from the Fed is likely to w...

Asia FX Muted, Dollar Steadies As Fed Meeting Looms

31Jan

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Asia

Asia FX Muted, Dollar Steadies As Fed Meeting Looms

Most Asian currencies moved little on Tuesday, while the dollar retained recent gains as caution kicked in ahead of a Federal Reserve meeting this week, with any signals on U.S. monetary policy squarely in focus. But most Asian units were set for strong gains in January amid expectations that the Fed will slow its pace of interest rate hikes in the coming months. Risk-heavy Southeast Asian currencies were the best performers through January, with the Thai baht leading gains among its peers with an over 5% jump. The Chinese yuan took little support from data that showed Chinese business activity rebounded in January after the country relaxed most anti-COVID measures. The yuan fell 0.1%, but remained close to a near seven-month high against the dollar, and was set to gain over 2% in January....

Asian Stocks Sink As Fed Week Begins, China Reopens Strong

30Jan

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Asia

Asian Stocks Sink As Fed Week Begins, China Reopens Strong

Most Asian stock markets sank on Monday as caution kicked in ahead of a Federal Reserve meeting and key economic data this week, while Chinese shares rose sharply as they resumed trade after a week-long holiday. China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 1.2% and 0.7%, respectively, with markets betting that the country’s economy was further supported by its first Lunar New Year holiday without COVID restrictions in three years. State media reported that domestic travel and consumption had bounced back sharply in the past week. The Chinese government also reiterated over the weekend that it plans to shore up spending and drive local consumption. A recovery in the Chinese economy bodes well for broader Asian markets, given their reliance on the country as a tradin...

Asian Stocks Rise Tracking Positive U.S. GDP, Adani Extends Losses

27Jan

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Asia

Asian Stocks Rise Tracking Positive U.S. GDP, Adani Extends Losses

Most Asian stock markets rose on Friday as appetite for risk-driven assets was supported by better-than-expected U.S. economic growth data, while Indian stocks extended their descent as heavyweight Adani remained under pressure from a short seller report. Overnight data showed that the world’s largest economy grew more than expected during the fourth quarter, dispelling some concerns that a recession was imminent. This triggered sharp gains on Wall Street, which in turn spilled over into Asia. South Korea’s KOSPI index was the best performer for the day, rising nearly 1%, while Indonesian stocks led gains across Southeast Asia with a 0.7% jump. Australia’s ASX 200 index also rose 0.5% as data showed some slowing in local producer price index inflation through the fourth quarter, which coul...

Asia FX Rises in Holiday Trade as China Recovery Bets Grow

23Jan

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Asia

Asia FX Rises in Holiday Trade as China Recovery Bets Grow

Most Asian currencies strengthened in thin trade on Monday, while the dollar weakened further amid growing bets that the Chinese economy will bounce back this year, with focus also turning to key U.S. data due this week. Regional trading volumes were limited with most markets closed for the Lunar New Year. But markets are betting on a major boost to the Chinese economy from the week-long holiday, after the country relaxed most anti-COVID measures and reopened its borders. The Chinese yuan was unchanged in holiday trade, while the offshore yuan rose 0.2% to a more favorable rate against the dollar than its onshore counterpart. The Japanese yen was among the best performers for the day, rising 0.3% and sticking close to an eight-month high against the dollar on expectations of more hawkish m...

Asia FX Drifts Lower On Hawkish Fedspeak, Weekly Losses On Tap

20Jan

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Asia

Asia FX Drifts Lower On Hawkish Fedspeak, Weekly Losses On Tap

Most Asian currencies fell on Friday, and were set to close the week lower following hawkish comments from several Federal Reserve officials, as well as growing concerns over a potential recession this year. China-exposed currencies were the worst performers this week, even as data released earlier showed that the country’s economy was beginning to pick up after the lifting of most anti-COVID restrictions. Traders are also positioning for a strong boost to the economy from the week-long Lunar New Year holiday, which begins from January 23. The Chinese yuan fell 0.1% on Friday and was set to lose 1.3% this week, while the Taiwan dollar shed 0.4% and was also down for the week. The People’s Bank of China kept its benchmark loan prime rate at historic lows for a fifth straight month on Friday...