Asian currencies gained, led by Taiwan s dollar and South Korea s won, after reports showed faster growth in global manufacturing.
Taiwan s currency headed for the biggest advance in two months after data yesterday showed U.S. manufacturing expanded in April at the fastest pace in almost six years. Malaysia s ringgit climbed before a trade ministry report today that may show exports rose for a fourth month in March. Thailand s baht rallied from a five-week low as Prime Minister Abhisit Vejjajiva proposed a Nov. 14 election to end violent street protests.
We are seeing a strong uptick in the global industrial cycle that is going to benefit exporters in Taiwan, Korea Singapore and Malaysia, said Sim Moh Siong, a currency strategist at Bank of Singapore Ltd. There are some headwinds, such as the Greece debt crisis, but they are unlikely to derail this cycle.
Taiwan s dollar strengthened 0.4 percent to NT$31.393 versus the U.S. currency as of 10:35 a.m. local time, according to Taipei Forex Inc. The won advanced 0.4 percent to 1,114.55 and the Singapore dollar was 0.2 percent stronger at S$1.3710.
Thai Election
The U.S. data was surprisingly better, said Bernard Yeung, Hong Kong-based head of currency trading for Asia at National Australia Bank Ltd. The momentum for the Korean won to appreciate is still there.
Overseas investors were buyers of Korean stocks today, adding to $10 billion worth of net purchases this year, according to stock exchange data. The nation s currency kept gains after the Bank of Korea denied a MoneyToday report that it spent $6.3 billion on intervention in the foreign-exchange market.
The baht gained 0.3 percent to 32.31 per dollar after Vejjajiva proposed holding an election Nov. 14 to help end eight weeks of anti-government protests that have shut down Bangkok s commercial center.
It s a relief that the situation will not become as bad as people expected, said Parson Singha, chief markets strategist in Bangkok at Hongkong and Shanghai Banking Corp.
Exports Data
China s Purchasing Managers Index of manufacturing gained for a second month in April, data released on May 1 showed. A similar index tracked by HSBC Holdings Plc and Markit Economics showed factory production grew at a slower pace last month.
Indonesia s rupiah gained 0.1 percent to 9,020 per dollar. Bank Indonesia will likely hold its reference rate for bill sales at 6.5 percent when policy makers meet tomorrow, according to all 20 economists in a Bloomberg survey.
Consumer prices in Southeast Asia s biggest economy rose at an annual pace of 3.91 percent in April, versus 3.72 percent in March, the statistics agency said yesterday. The government is optimistic inflation in 2010 may be about 5.3 percent, said Rusman Heriawan, the head of the statistics agency.
In other Asian trading, the Vietnamese dong strengthened 0.2 percent to 18,970, while the Philippine peso fell 0.1 percent to 44.51.
Taiwan s currency headed for the biggest advance in two months after data yesterday showed U.S. manufacturing expanded in April at the fastest pace in almost six years. Malaysia s ringgit climbed before a trade ministry report today that may show exports rose for a fourth month in March. Thailand s baht rallied from a five-week low as Prime Minister Abhisit Vejjajiva proposed a Nov. 14 election to end violent street protests.
We are seeing a strong uptick in the global industrial cycle that is going to benefit exporters in Taiwan, Korea Singapore and Malaysia, said Sim Moh Siong, a currency strategist at Bank of Singapore Ltd. There are some headwinds, such as the Greece debt crisis, but they are unlikely to derail this cycle.
Taiwan s dollar strengthened 0.4 percent to NT$31.393 versus the U.S. currency as of 10:35 a.m. local time, according to Taipei Forex Inc. The won advanced 0.4 percent to 1,114.55 and the Singapore dollar was 0.2 percent stronger at S$1.3710.
Thai Election
The U.S. data was surprisingly better, said Bernard Yeung, Hong Kong-based head of currency trading for Asia at National Australia Bank Ltd. The momentum for the Korean won to appreciate is still there.
Overseas investors were buyers of Korean stocks today, adding to $10 billion worth of net purchases this year, according to stock exchange data. The nation s currency kept gains after the Bank of Korea denied a MoneyToday report that it spent $6.3 billion on intervention in the foreign-exchange market.
The baht gained 0.3 percent to 32.31 per dollar after Vejjajiva proposed holding an election Nov. 14 to help end eight weeks of anti-government protests that have shut down Bangkok s commercial center.
It s a relief that the situation will not become as bad as people expected, said Parson Singha, chief markets strategist in Bangkok at Hongkong and Shanghai Banking Corp.
Exports Data
China s Purchasing Managers Index of manufacturing gained for a second month in April, data released on May 1 showed. A similar index tracked by HSBC Holdings Plc and Markit Economics showed factory production grew at a slower pace last month.
Indonesia s rupiah gained 0.1 percent to 9,020 per dollar. Bank Indonesia will likely hold its reference rate for bill sales at 6.5 percent when policy makers meet tomorrow, according to all 20 economists in a Bloomberg survey.
Consumer prices in Southeast Asia s biggest economy rose at an annual pace of 3.91 percent in April, versus 3.72 percent in March, the statistics agency said yesterday. The government is optimistic inflation in 2010 may be about 5.3 percent, said Rusman Heriawan, the head of the statistics agency.
In other Asian trading, the Vietnamese dong strengthened 0.2 percent to 18,970, while the Philippine peso fell 0.1 percent to 44.51.
