logo
Asian currencies down against dollar

Asian currencies down against dollar

BENGALURU: Emerging Asian equity markets opened the week higher on Monday, led by Taiwan tracking Wall Street gains, while Indonesian shares rose on strength in banking stocks.
Most stock markets in the region were upbeat as an easing of trade tensions between the United States and China helped stir an appetite for risk among investors.
Shares in Malaysia, Thailand and India added 0.7%, 0.1% and 1.3% respectively.
'After a period of correction, ASEAN equities are showing upward momentum, having broken out of a technical downtrend that began from the 2017 high(the first technical breakout occurred in 2024),' said Mohit Mirpuri, an equity fund manager at Singapore-based SGMC Capital.
Attractive valuations, a weaker US dollar, steady growth prospects in Asia and relatively light investor positioning create the right conditions for investors to start moving back into risk assets, Mirpuri added.
Equities in Taipei surged 0.8%, reflecting a strong lead from gains in technology and artificial intelligence-related stocks in the US
The Indonesian benchmark index rose 0.7% to hit its highest since February, powered by major gains in large-cap lenders - Bank Central Asia, Bank Mandiri and Bank Rakyat Indonesia.
Bank Central Asia, Indonesia's largest lender, reported strong first-quarter earnings last week and set a positive tone for its rivals, who are scheduled to release their results later this week.
In Thailand, the local central bank is set to meet on Wednesday for its monetary policy decision, where Poon Panichpibool, markets strategist at Krung Thai Bank, expects a cut.
The Thai baht was trading 0.4% lower against a steady US dollar.
If the central bank can decide to hold for now, we could see some profits taking on the Thai bonds and that could be somewhat negative on the baht,' added Panichpibool.
Currencies across emerging Asia were trading tepidly against a steady US dollar as investors awaited more cues on the future trajectory of trade talks between the world's two largest economies.
Despite US President Donald Trump's claims of progress on trade negotiations with China and other countries, concrete evidence remains scarce.
On Sunday, Treasury Secretary Scott Bessent declined to support Trump's assertion that tariff talks with China had begun. The week is also packed with economic news including US employment, gross domestic product and core inflation.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Rupee back on the ropes after US yields spike post jobs data
Rupee back on the ropes after US yields spike post jobs data

Business Recorder

time9 hours ago

  • Business Recorder

Rupee back on the ropes after US yields spike post jobs data

MUMBAI: The Indian rupee is set to come under renewed stress on Monday after the U.S. economy added slightly more number of jobs than was expected, prompting a rise in U.S. Treasury yields and bringing relief to the dollar. The 1-month non-deliverable forward indicated a open in the 85.74-85.78 range, versus the close of 85.6250 in the previous session. The Indian currency had found respite on Friday after the Reserve Bank of India delivered a larger-than-expected rate cut while the signalling limited room for more reductions. The policy surprise lifted domestic equities and lent support to the rupee. 'The opening today is probably just a retracement of Friday's move,' a currency trader at a Mumbai-based bank said. 'With the U.S. jobs data broadly positive for the dollar, the rupee is simply coming back under pressure.' Indian rupee ends higher The trader is betting on a 85.60-86.00 range for the week with bias more-or-less neutral. US jobs surprise Employers added 139,000 jobs last month, above estimates for an increase of 130,000. Average hourly earnings increased 0.4% in May against a rise of 0.3%. The unemployment rate was unchanged at 4.2%. Federal Reserve rate cut expectations were scaled back post the data, Morgan Stanley said in its daily commentary. The market-implied rate for the December Fed meeting was re-priced 9 basis points higher, implying just 42 bps of rate cuts through 2025, it said, adding that the probability of a rate cut in July fell to 12% from 25%. The 10-year U.S. Treasury yield climbed nearly twelve bps on Friday and the dollar index rose 0.5%. The key U.S. jobs report followed a string of mostly weak data points that had raised concerns about the economic outlook. With that risk now tempered to an extent, attention turns to the pivotal U.S.-China trade talks scheduled to take place in London later in the day.

China's May crude imports at 4-mth low amid widespread refinery maintenance
China's May crude imports at 4-mth low amid widespread refinery maintenance

Business Recorder

time17 hours ago

  • Business Recorder

China's May crude imports at 4-mth low amid widespread refinery maintenance

China's crude oil imports fell in May to their lowest daily rate in four months, data showed on Monday, as planned maintenance work at both state-owned and independent refiners picked up. May imports in the world's largest crude buyer totalled 46.6 million metric tons, equivalent to 10.97 million barrels per day (bpd), according to data from the General Administration of Customs. The volume dropped by 3% compared with 48.06 million tons in April, and also fell 0.78% from May 2024. In the first five months of 2025, China imported 229.61 million metric tons, or 11.1 million bpd, up 0.3% from the same period a year earlier, the data showed. Maintenance affected a combined refining capacity of 129.9 million tons per year, or about 2.6 million bpd, up by 19.2 million tons from April, according to data by local consultancy Oilchem. 'May is typically the peak maintenance season in China, so refineries intentionally reduced their purchases of cargoes arriving in May,' Muyu Xu, Kpler's senior crude oil analyst, said. 'In addition, crude prices were relatively high earlier, so long-term contract volumes, especially from Saudi Arabia, were significantly cut back. On top of that, Iranian oil arrivals were very low in May, which made overall seaborne imports quite weak.' However, import are expected to rebound in June. China April crude oil imports up 'That's because the volume of long-term contract barrels from the Middle East arriving in June will increase notably, and arbitrage barrels from other regions, such as Brazilian crude, will also rise. However, Iranian crude imports may remain low, roughly on par with May levels,' Muyu Xu said. Monday's data also showed China's refined fuel exports fell 17.62% in May to 4.41 million tons from a year earlier. Natural gas imports - including piped gas and liquefied natural gas (LNG) - fell 10.8% on the year to 10.11 million tons, the data showed. Imports of spot LNG remained weak as Asian prices hovered above $11/mmBtu, a level deemed too expensive for Chinese buyers given ample domestic supplies and weaker-than-expected industrial consumption of the fuel, traders have said.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store