* All Asian FX clock gains * Taiwan stocks at 4-month high * U.S. dollar at lowest in more than two months By Roushni Nair Nov 21 (Reuters) - Emerging Asian currencies and most equities in the region rose on Tuesday, with the U.S. dollar touching new lows, as investors turned bullish on riskier Asian assets on renewed expectations of a potential end to U.S. interest rate hikes. The Taiwanese dollar led the charge to appreciate as much as 0.7% to its highest level since July 31. Stocks in the country, Asia's second-best performer so far this year, advanced over 1% and are trading at a near four-month high. News of Kuomintang and the Taiwan People's Party's progress on a joint presidential bid last week pushed the Taiwan dollar to its strongest weekly rally in a year on expectations of an easing of Taiwan-China tensions if they won, although subsequent news of disagreements between the two parties has cast doubts over the coalition. The Malaysian ringgit, South Korean won, and the Chinese yuan added over 0.4% each. Equities in Shanghai, Mumbai and Bangkok advanced by nearly 0.5% each, with stocks in Thailand at their highest level in more than two weeks. Signs of progress in the battle against inflation in the U.S. have driven a recovery in EM assets as investors hope for an end to the cycle of rate hikes that have been policymakers' main tool for fighting price increases. The greenback has been nursing losses on the back of increasing bets U.S. interest rates have peaked with mounting expectations of monetary policy easing by the Fed into next year. The U.S. dollar index fell 1.9% last week alongside a big rally in U.S. Treasures and lost a further 0.5% overnight to 103.44. Investors now shift their focus to minutes of the Federal Reserve's last meeting to gauge the Fed's next moves. Poon Panchibool, a markets strategist with Krung Thai Bank highlighted the possibility of increasing demand from foreign investors supporting emerging markets assets if weakness in U.S. dollar continues. "EM assets should emerge from the bottom and make a rebound in the current quarter and my bets are that we could continue to recover lost ground going forward into 2024," Panchibool said flagging a possible recession in the U.S. during the first half of 2024 as a risk to the forecast. Meanwhile, MSCI's broadest index of Asia-Pacific shares outside Japan is up 7% for November and on course for its biggest monthly gain since January. Among other currencies, the Indonesian rupiah and the Philippines peso largely traded flat while the Singapore dollar and Thailand's baht surged 0.2% each. In Argentina, offshore dollar bonds rallied following Javier Milei's victory as president on Sunday as investors welcomed pledges to cut spending. Caution remains, however, over whether his unorthodox policy proposals can fix the Argentine economy's numerous problems. HIGHLIGHTS: ** Indonesian 10-year benchmark yields fall 0.1 basis points to 6.642% ** Indonesia posts smaller current account deficit in Q3 ** Bank Indonesia to maintain key rate at 6.00% until at least mid-2024 - Poll Asia stock indexes and currencies at 0503 GMT COUNTRY FX RIC FX FX INDEX STOCKS STOCKS DAILY % YTD % DAILY YTD % % Japan +0.58 -11.1 0.04 29.88 2 ChinaIndia +0.01 -0.74 0.39 9.19 Indonesi +0.06 +0.87 -0.59 1.50 a Malaysia +0.43 -5.27 0.23 -2.36 Philippi +0.04 +0.58 0.18 -5.66 nes S.Korea Singapor +0.16 +0.31 -0.28 -4.57 e Taiwan +0.68 -2.34 1.15 23.13 Thailand +0.23 -1.35 0.47 -14.54 (Reporting by Roushni Nair in Bengaluru)
Delayed 05:00:00 2024-04-26 pm EDT | 5-day change | 1st Jan Change | ||
1.069 USD | -0.32% | +0.37% | -3.11% |
Apr. 27 | Business Lookahead: Fed straight ahead | RE |
Apr. 26 | Wall Street: the worst week of 2024 is followed by the best | CF |
Stocks mentioned in the article
Price
|
Change
|
5d. change
|
Capi.
| ||
---|---|---|---|---|---|
2,686 PTS | +0.86% | +2.29% | - | ||
935.1 ARS | -0.22% | +0.76% | - | ||
874.5 ARS | +0.11% | +0.40% | - | ||
690.6 USD | +1.81% | +3.39% | - | ||
21.27 TWD | 0.00% | +1.96% | - | ||
16.5 THB | +0.61% | +3.12% | 6.23B | ||
7.267 CNH | 0.00% | +0.26% | - | ||
7.246 CNY | +0.10% | +0.08% | - | ||
1.701 SGD | +0.09% | +1.06% | - | ||
1.457 SGD | +0.02% | +0.46% | - | ||
1.362 SGD | 0.00% | +0.08% | - | ||
1.249 USD | -0.12% | +0.99% | - | ||
1.069 USD | -0.32% | +0.37% | - | ||
0.731 USD | 0.00% | +0.56% | - | ||
0.6532 USD | 0.00% | +1.81% | - | ||
0.5938 USD | 0.00% | +0.88% | - | ||
0.0163 SGD | 0.00% | 0.00% | - | ||
0.012 USD | 0.00% | 0.00% | - | ||
- PTS | -.--% | +1.02% | - | ||
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