EEM•10-year bond yields in Malaysia at 4.140%, highest since late October 2023
BOJ policymaker warns of price risks that may trigger rapid rate hikes
Yuan holds near 3-1/2-year high as investors await US inflation data
| Asia stock indexes and currencies at 0413 GMT | ||||||
| COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX |
| STOCKS DAILY % |
| STOCKS YTD % |
| Japan | JPY= | +0.14 | +2.17 | .N225 | -0.64 | 24.88 |
| China | CNY=CFXS | -0.01 | +4.18 | .SSEC | -0.35 | -0.78 |
| India | INR=IN | -0.18 | -5.68 | .NSEI | 0.03 | -10.30 |
| Indonesia | IDR= | -0.14 | -4.88 | .JKSE | -0.15 | -22.88 |
| Malaysia | MYR= | +0.22 | -0.07 | .KLSE | -0.60 | 1.43 |
| Philippines | PHP= | -0.07 | -5.87 | .PSI | -0.25 | 0.79 |
| S.Korea | KRW= | +0.22 | +7.68 | .KS11 | -0.76 | 66.06 |
| Singapore | SGD= | +0.01 | +1.72 | .STI | -0.65 | 22.52 |
| Taiwan | TWD=TP | -0.06 | -0.28 | .TWII | 2.09 | 61.55 |
| Thailand | THB=TH | +0.03 | -4.35 | .SETI | -0.09 | 28.32 |
Stocks in Asia declined more than 1% on Thursday as Brent crude futures surged above $100 a barrel after attacks on shipping in the Middle East, denting risk sentiment and fuelling inflation concerns.
The MSCI EM Asia equities index .MIMS00000PUS slipped as much as 1.3%, while another gauge tracking ASEAN stocks .MISU00000PUS fell to a one-week low.
Brent crude surpassed the psychologically crucial $100 mark on Wednesday for the first time since late July as traders grappled with the prospect of inflationary pressures and rising global interest rates. O/R
Elevated energy prices threaten to stoke inflation and widen trade deficits in oil-dependent emerging economies in Asia, pushing equities lower and bond yields higher.
James Ooi, a market strategist at Tiger Brokers, said U.S. President Donald Trump's prediction that the war with Iran will end "immediately after" the U.S. midterm elections in November "adds another layer of uncertainty to both bond and equity markets".
Stocks in Seoul .KS11 and Taipei .TWII fell as much as 2.2% and 0.8% on the day, reversing gains from the previous session, as the net energy importers bore the heat of the escalating tensions in the Middle East.
Stocks of other net energy importers in the region such as Thailand .SETI and the Philippines .PSI also declined marginally, while those in Jakarta .JKSE and Singapore .STI also inched lower.
Malaysia's benchmark gauge .KLSE fell 0.5% to a one-week low, while the ringgit MYR= appreciated nearly 0.3% to 4.058 per dollar after weakening steadily for nearly two weeks.
Malaysia, a net exporter of crude oil and petroleum products, remains moderately exposed to higher oil prices, with export and fiscal gains helping cushion growth and inflation pressures.
"Higher oil prices tend to modestly dampen economic growth by increasing production costs and weighing on domestic activity," Barnabas Gan, group chief economist and head of market research at RHB Bank, wrote.
"However, the negative effect is partly offset by stronger oil and gas (O&G) export earnings and related economic spillovers."
Currencies were rangebound, with the MSCI gauge of emerging market currencies .MIEM00000CUS hovering just below its record high despite a modest decline.
The Singapore dollar SGD=, the Thai baht THB=TH and the Philippine peso PHP= were largely unchanged, while the Indonesian rupiah IDR= weakened by 0.2% to 17,535 against the dollar.
The South Korean won KRW=, however, strengthened against the greenback to 1,343.20, not far from its October 2024 peak of around 1,349.
Investors are also closely watching the U.S. inflation print due on Friday for further clues on the Federal Reserve's next policy move as rising oil prices stoke concerns of inflation.
