BLBG:Asian Currencies Advance After U.S. Factory Data Tops Estimates
Asian currencies rose, led by South Korea’s won, after U.S. factory orders topped estimates, tempering concern global economic growth is slowing.
The Philippine peso touched a four-year peak and the won advanced to the highest level in two months after data showed orders rose for the first time in three months. Asian stocks rose for a sixth day ahead of a European Central Bank meeting tomorrow at which 51 of 62 economists surveyed by Bloomberg forecast a benchmark interest-rate cut. China may lower banks’ reserve-requirement ratios three more times in 2012, Shanghai Securities News reported on its website, citing a report released by the China Banking Association today.
“U.S. factory orders were better than expected,” said Vishnu Varathan, an economist at Mizuho Corporate Bank Ltd. in Singapore. “Markets are also celebrating the expectation of more policy stimulus.”
The won strengthened 0.3 percent to 1,134.55 per dollar as of 11:46 a.m. in Seoul, according to data compiled by Bloomberg. The Taiwan dollar rose 0.2 percent to NT$29.832 and Thailand’s baht climbed 0.2 percent to 31.43. The Bloomberg-JPMorgan Asia Dollar Index was little changed after reaching the highest level in seven weeks yesterday.
Factory orders in the world’s largest economy rose 0.7 percent, following a revised 0.7 percent drop in April, the Commerce Department said in Washington. Economists had predicted a 0.1 percent gain, based on the median forecast in a Bloomberg News survey. Further monetary-policy easing may be needed by the Federal Reserve if the U.S. economy deteriorates, International Monetary Fund Managing Director Christine Lagarde said yesterday.
Thai Stock Purchases
The baht reached a two-week high as global funds boosted holdings of the nation’s stocks by $109 million in the first two days of this week, exchange data show. The finance ministry raised its 2012 economic growth forecast to 5.7 percent on June 28 from its March prediction of about 5.5 percent.
Speculation on policy easing in the U.S. and Europe “supported market sentiment,” said Tohru Nishihama, an economist at Dai-ichi Life Research Institute Inc. in Tokyo. “That makes it easier for investors to take risks, helping to boost emerging-market currencies.”
Malaysia’s ringgit rose for a fourth day, the best winning streak since April, before a government report at noon local time that may show exports rose 4.5 percent in May from a year earlier, according to the median forecast in a Bloomberg survey. Overseas sales fell 0.1 percent in April.
China’s yuan gained 0.07 percent to 6.3481 per dollar in Shanghai, according to the China Foreign Exchange Trade System. The People’s Bank of China raised the reference rate by 0.09 percent to 6.3121 per dollar.
“Investors are expecting better data from the U.S. and China, with global central banks on track with more easing measures,” said Tommy Ong, senior vice-president of treasury and markets at DBS Bank (Hong Kong) Ltd.
Elsewhere, Indonesia’s rupiah weakened 0.4 percent to 9,404 per dollar and Vietnam’s dong was steady at 20,895.
To contact the reporters on this story: David Yong in Singapore at dyong@bloomberg.net; Jiyeun Lee in Seoul at jlee1029@bloomberg.net.
To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net.
