Asian stocks climb as strong China PMI boosts sentiment

Article content

Most stock markets in emerging Asia

rose on Wednesday after strong manufacturing activity data from

Article content

China lifted sentiment, while investors continued to assess the

likelihood of further interest rate hikes by the U.S. Federal


Equities in Manila climbed 1% to lead gains.

Singapore’s benchmark index and Jakarta shares

advanced 0.3% and 0.2%, respectively.

Currencies in the region were mostly muted, with Malaysia’s

ringgit and Indonesia’s rupiah trading flat. The

Advertisement 2

Article content

Singapore dollar was up 0.1%.

The Philippine peso rose 0.6%, while the Thai baht

appreciated 0.4%.

Annual inflation in the Philippines was likely within a

range of 8.5% to 9.3% in February, the country’s central bank

said on Tuesday, adding that it would continue to adjust its

monetary policy stance as necessary to prevent the further

broadening of price pressures.

Data showed China’s non-manufacturing activity grew at a

faster pace in February, while factory activity rose for the

first time in seven months as the country shook off its strict

COVID curbs.

“For now, the market is reminded that China’s recovery is

showing no signs of faltering,” said Eugenia Victorino, head of

Asia strategy at Skandinaviska Enskilda Banken.

Article content

Advertisement 3

Article content

The yuan firmed 0.3%. Equities in Shanghai

advanced 0.9%.

“The data will provide some relief to global risk sentiment,

but it will be difficult to counteract the intensification of

negative sentiment amid higher for longer Fed rate

expectations,” said Mitul Kotecha, head of EM Strategy at TD


A slew of upbeat U.S. economic data in recent weeks has

heightened expectations that the Fed would hike rates to a

higher level than market forecasts and keep them elevated for

longer than was initially expected.

Fed fund futures suggest rates peaking at around 5.4% by

September, with a chance of a 50 basis point hike in March.

“U.S. non-farm payrolls and CPI (consumer price index) reads

will be important to gauge the strength of U.S. demand, which

Advertisement 4

Article content

could lead to USD/Asia resuming its appreciation path,” said Wei

Liang Chang, macro strategist at DBS Bank.


** The Philippine government posted a budget deficit of 1.6

trillion pesos for 2022

** India’s economic growth slowed further in the December

quarter as pent up demand eased and weakness in the

manufacturing sector continued

** Taiwan’s defense ministry said it had spotted 19 Chinese

air force planes in its air defense zone in the past 24 hours,

part of what Taipei calls regular harassment by Beijing

The following table shows rates for Asian currencies against

the dollar at 0343 GMT.




Japan -0.10 -3.83 <.n2>

China EC>

India +0.36 +0.43 <.ns ei>

Indonesi -0.03 +2.07 <.jk a se>

Malaysia +0.04 -1.85 <.kl se>

Philippi +0.55 +1.18 <.ps nes i>

Singapor +0.11 -0.50 <.st e i>

Taiwan -0.44 +0.30 <.tw ii>

Thailand +0.43 -1.34 <.se ti>

(Reporting by Upasana Singh in Bengaluru; Editing by Christian



Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

Join the Conversation

Source link

#Asian #stocks #climb #strong #China #PMI #boosts #sentiment

Leave a Reply

Your email address will not be published. Required fields are marked *