Stocks in the Philippines, Thailand and Indonesia, the best performers worldwide during the past five years, are leading losses in emerging markets this month as foreign outflows approach a record on signs of slowing growth.
Indonesia’s rupiah forwards fell by the most in two months on concern the country’s current-account and trade gaps aren’t narrowing fast enough to restore investor confidence. Government bonds gained for a third day.
Prime Minister Najib Razak said he believes that Malaysia can avoid a cut to its credit rating while the government will try its “level best” to prevent a breach of its self-imposed sovereign debt ceiling.
Singapore’s central bank maintained its commitment to currency appreciation after the economy shrank less than estimated last quarter, forgoing stimulus as labor shortages and record home prices fuel inflation.
The Philippine peso climbed to the highest level in almost five years on speculation the central bank will start raising its benchmark interest rate in 2013 to ward off inflation. Five-year government bonds declined.
Indonesia’s rupiah was little changed after trading near a one-month high, as a government report showed inflation accelerated to the fastest pace in 20 months, spurring speculation the central bank will raise borrowing costs this year.