Malaysia’s ringgit rose, leading gains in Asia, as U.S. jobs data that trailed estimates pushed back the expected timetable for borrowing-cost increases.
Central bankers in London and Jakarta will probably conclude this week that inflation poses little threat as they choose to keep borrowing costs unchanged.
Glenn Maguire , chief Asia economist at Societe Generale SA in Hong Kong, comments on odds of a one- off revaluation in the yuan. He was speaking in a Bloomberg Television interview.
Chinese officials are likely to “tolerate” banks breaching the nation’s 7.5 trillion yuan ($1.1 trillion) loan target for 2010 to sustain growth as the economy cools, Societe Generale SA says.
China’s pledge to make the yuan more flexible may boost shares denominated in the currency when markets open tomorrow, China International Capital Corp. and Societe Generale SA said.
Malaysia’s ringgit fell after a gauge of manufacturing in China, its biggest export market, trailed estimates and minutes of a Federal Reserve meeting suggested stimulus cuts would continue.
Chinese manufacturing data due in four days could jolt global markets by showing the first contraction in 17 months, according to analysts at Societe Generale SA and Westpac Banking Corp.
The Philippines will probably end three quarters of slowing growth, with central bank Governor Amando Tetangco seeing less room to hold interest rates after inflation accelerated to a two-year high.
India’s central bank unexpectedly raised its key interest rate, signaling it’s ready to implement the most sweeping changes in its 78-year history to fight the fastest consumer-price gains in Asia.
India’s 10-year bonds rose after the central bank, which unexpectedly raised borrowing costs today, said further tightening may not be necessary should inflation cool as per projections.
"Our confidence that inflation and the current-account deficit will remain well-behaved is waning, hence our revised forecast for an extension to the BI tightening cycle."
- Glenn Maguire on Apr 05, 2014