EMERGING MARKETS-Asian currencies mixed in thin trading, Chinese yuan falls most

By Archishma Iyer

Oct 24 – Asian currencies were mixed against a choppy US dollar in thin trading on Monday, with the Chinese yuan remaining pressured after President Xi Jinping picked a governing body filled with loyalists as he secured a third leadership term.

Chinese shares and its currencies .SSEC, CNY=CFXS sank 0.9% and 0.4% respectively after the line-up for the new Politburo Standing Committee reinforced Xi’s ideology-driven policies, which could come at the cost of economic growth.

Beijing continues to face economic growth hurdles because of its zero-COVID policy and weakness in its property sector.

“The changing of the guard comes at a difficult time for the mainland economy and should be seen as a risky move,” analysts from Brown Brothers Harriman said in a research note.

TD Securities had expected the yuan to reach 7.3 against the US dollar by the end of the fourth quarter, but that seems likely to be hit much sooner and possibly within days, said Mitul Kotecha, its head of emerging markets strategy.

Japan’s suspected central bank intervention in the foreign exchange market also kept global investors on edge, though authorities did not confirm taking action.

At 0407 GMT, the dollar index =USDwhich measures the strength of the greenback against a basket of six currencies was at 112.25, showing demand for the safe-haven asset after a choppier start.

However, global sentiment was boosted when a number of US Federal Reserve officials said the central bank could adopt a less hawkish stance in the December meeting. .NOT

Market participants widely expect the Fed will announce a 75 basis point hike at its Nov. 1 to Nov. 2 meeting. FEDWATCH/

Shares in Philippines .PSITaiwan .TWII and indonesia .JKSE gained between 0.6% and 1%.

The South Korean won KRW=KFTC rose as much as 0.1% as one of Asia’s largest economies said on Sunday it would extend its corporate bond-buying program to support the financial system. South Korean shares rose 0.9%.

The Indonesian rupiah RDI= and the Philippines peso PHP= notched up gains of 0.2% and 0.1% respectively, whereas the Taiwan dollar TWD=TP traded 0.1% lower.

For the year to date, only Indonesia and Singapore have recorded single-digit currency declines against the greenback, with other Asian peers logging double-digit slides.

Singapore and Vietnam are expected to report inflation data later this week.

HIGHLIGHTS:

** Indonesia’s benchmark 10-year yield rises to 7.661%

** Indonesia Q3 foreign direct investment up 63.6% y/y – investment ministry

** Vietnamese EV maker VinFast receives $135 mln in green funding led by ADB

Asia stock indexes and currencies at 0407 GMT

COUNTRY

FXRIC

FX DAILY %

FX YTD %

INDEX

DAILY INVENTORY %

INVENTORY YTD %

Japan

JPY=

-0.82

-22.69

.N225

0.61

-6.60

China

CNY=CFXS

-0.41

-12.39

.SSEC

-0.89

-17.25

India

INR=IN

–

-10.09

.NSEI

–

-100.00

indonesia

RDI=

+0.24

-8.61

.JKSE

0.83

7.52

malaysia

MYR=

–

-12.08

.KLSE

–

-7.73

Philippines

PHP=

+0.05

-13.31

.PSI

0.96

-15.18

S.Korea

KRW=KFTC

-0.01

-17.44

.KS11

0.80

-25.08

Singapore

SGD=

-0.36

-4.98

.STI

–

-4.92

taiwan

TWD=TP

-0.15

-14.10

.TWII

0.50

-29.28

thailand

THB=TH

–

-12.99

.SETI

–

-4.00

Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

Asian stock marketshttps://tmsnrt.rs/2zpUAr4

(Reporting by Archishma Iyer; Editing by Jamie Freed)

((Archishma.Iyer@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.