Government bonds fell around the world after manufacturing grew more than forecast in the U.S., euro area and China. Gold sank and U.S. stocks retreated while the dollar strengthened against most major peers.
Thailand’s baht fell to a 12-week low and government bonds dropped as protesters seeking to oust Prime Minister Yingluck Shinawatra vowed more unrest after clashes left three dead in Bangkok at the weekend.
Asian currencies posted their first monthly loss since August, led by Indonesia’s rupiah and the Thai baht, as concern about current-account deficits and political unrest in the region fueled fund outflows.
The Thai baht headed for its biggest monthly decline since May and 10-year sovereign bonds dropped as overseas funds cut holdings of the nation’s assets amid concern political unrest will hurt economic growth.
The dollar rose to a six-month high against the yen as an unexpected drop in U.S. jobless claims and a rise in leading economic indicators added to speculation the Federal Reserve may start reducing stimulus next month.
Indonesia’s rupiah weakened to a 2009 low and the Thai currency fell after the countries missed fundraising targets amid protests in Bangkok and concern the Federal Reserve will bring forward a plan to trim stimulus.