Asian currencies and stocks fall, investors brace for hawkish Fed

19/1/2022 7:42:00 AM

Emerging Markets: Asian currencies and stocks fall, investors brace for hawkish Fed - Reuters

Emerging Markets: Asian currencies and stocks fall, investors brace for hawkish Fed - Reuters

BENGALURU (Jan 19): Asia's emerging stock and currency markets largely fell on Wednesday as US Treasury yields perched at two-year highs amid prospects of higher US interest rates. Currencies in the region were flat to lower with Indonesia's rupiah, an attractive carry-trade for investors, down a fifth of a percent, while the Thai baht fell 0.3%. The US dollar also firmed overnight as two-year Treasury yields stayed above 1% and benchmark 10-year yields stood at a two-year high of 1.8860%.Investors are

BENGALURU (Jan 19): Asia's emerging stock and currency markets largely fell on Wednesday as US Treasury yields perched at two-year highs amid prospects of higher US interest rates.Currencies in the region were flat to lower with Indonesia's rupiah, an attractive carry-trade for investors, down a fifth of a percent, while the Thai baht fell 0.3%.

The US dollar also firmed overnight as two-year Treasury yields stayed above 1% and benchmark 10-year yields stood at a two-year high of 1.8860%.Investors are now awaiting the Federal Reserve's Jan 25-26 meeting for hawkish signals as markets now position for at least four hikes this year, likely starting in March.

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A BENGALURU (Jan 19): Asia's emerging stock and currency markets largely fell on Wednesday as US Treasury yields perched at two-year highs amid prospects of higher US interest rates.A BENGALURU (Jan 18): Gold prices eased on Tuesday, pressured by higher US Treasury yields, as investors looked for clues about the Federal Reserve's interest rate hike timeline from its policy meeting next week.Telegram channel for the latest updates.A BENGALURU (Jan 17): Emerging Asian shares were mixed on Monday as investors digested a slew of Chinese data and further monetary easing in the world's second-largest economy, while South Korea's stocks fell as investors prepared for a highly-anticipated mega-IPO.

Currencies in the region were flat to lower with Indonesia's rupiah, an attractive carry-trade for investors, down a fifth of a percent, while the Thai baht fell 0.3%.1% to US$1,817. The US dollar also firmed overnight as two-year Treasury yields stayed above 1% and benchmark 10-year yields stood at a two-year high of 1. The 22-year-old Warmbier, who was detained in North Korea for allegedly removing a propaganda poster from his hotel, died days after being sent back to the United States in a coma in 2017.8860%. US gold futures were little changed at US$1,816. Investors are now awaiting the Federal Reserve's Jan 25-26 meeting for hawkish signals as markets now position for at least four hikes this year, likely starting in March.1% each, while the won dropped 0.

Higher US interest rates could prompt outflows from Asia's riskier assets and the central banks to also tighten. Global investor attention remains fixed on the Fed's Jan 25-26 meeting after central bank officials signalled they would start raising interest rates in March to tame inflation, which rose 7% last month from a year earlier — the fastest pace in nearly 40 years. Last week, Judge Lawrence Kahn of the Northern District Court of New York approved the seizure of the funds from North Korea’s Korea Kwangson Banking Corporation after they failed to respond to a forfeiture order. Malaysia led Asia's emerging stock markets lower with a 0.9% drop, coming off a holiday on Tuesday. Benchmark 10-year US Treasury yields climbed to a two-year high, reducing the appeal of the non-yielding metal. In China, stocks fell 0. Otto Warmbier, an Ohio native who studied at the University of Virginia, travelled to North Korea on a tour in 2016.4%, while the yuan was flat. "Every day we are trying to figure out how significant the hawkish Fed is going to be relative to other geopolitical risks engulfing the market, like the situation in Ukraine, which continues to keep a bid under gold right now," Innes said. In South Korea, battery maker LG Energy Solutions has attracted record demand for its US$10.

The central bank on Tuesday flagged more policy easing on the cards to help prop up the slowing economy, leading to government bond yields falling across the curve. Three-year and benchmark 10-year yields fell to June 2020 lows. The Bank of Japan raised its inflation forecast for the fiscal year beginning in April and said risks to the price outlook were evenly balanced. Warmbier had gone blind and deaf, his once straight teeth were misaligned and his eyes bulged out, the ruling said. "The general hardiness of the Chinese currency is itself becoming a major attraction given its ample liquidity and still-decent carry," Alvin Tan, RBC Capital Market's head of Asia FX strategy said, referring to a currency roughly flat so far this year. Prices of oil, another big inflation driver, climbed to a seven-year high.6% at US$22. On Thursday, the central banks of Malaysia and Indonesia conclude their policy meetings and although no changes are expected, markets will be keen on what commentary is forthcoming as global monetary policy looks set to tighten. — AFP You May Also Like. Investors were also keeping an eye on other central bank meetings in Asia this week.

A Reuters poll showed economists think Bank Indonesia will wait till the second half of the year to hike rates.5% to US$966. The surge in real rates spreads with US real rates suggests Asian emerging market central banks have time to maintain their accommodative stances, though"the Fed's hiking course will erode reals spread very quickly", Mizuho said in a note. Highlights: Indonesian 10-year benchmark yields are up 1.2% to US$1,879.5 basis points at 6.411% CIMB Group Holdings Bhd and Top Glove Corp Bhd are among the top losers in Malaysia Battery maker LG Energy Solution's public subscription for retail investors ends on Wednesday, with investors placing bids worth more than 32 trillion won solely on Tuesday Subscribe to Mid-day email alert We deliver news to your inbox daily . Subscribe to Mid-day email alert We deliver news to your inbox daily. While the prospect of tighter US monetary policy could dent appetite for Asia's riskier emerging assets, regional assets have so far remained relatively resilient, analysts say.