Singapore is encouraging companies to expand in China to tap rising consumption in the world’s second-largest economy as President Xi Jinping sustains efforts to reduce his country’s reliance on investment and exports.
Malaysia’s ringgit rose for a fifth day, the longest stretch of gains since January, after Federal Reserve Chair Janet Yellen said the U.S. economy needs support and a gauge showed Chinese manufacturing increased.
Malaysia, aspiring to become a developed nation in six years, is finding that more than 50 years under one coalition and tight control over information is a mismatch for handling a rapidly growing crisis followed across the world.
Forest fires brought on by drought in Malaysia and Indonesia fouled air quality to unhealthy levels in parts of Southeast Asia, stoking concerns of a repeat of the haze that engulfed the region in June.
Indonesia’s rupiah led losses in Asian currencies after the Federal Reserve signaled a faster timetable for raising interest rates as it kept cutting stimulus that has fueled fund flows to emerging markets.
Central banks in Indonesia and India, with the worst-performing currencies among Asian emerging markets this year, will face more challenges in 2013 as they balance inflation risks with the need to boost growth.
Philippine peso forwards snapped a three-day drop after the Dow Jones Industrial Average climbed to a record and China pledged to maintain its economic growth target, stoking investor appetite for emerging-market assets.