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Asia stocks rebound on Wall Street cue, FX broadly weaker

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Most Asian equity markets gained on

Wednesday after four days of loss as a higher close on Wall

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Street overnight helped provide a floor, while most currencies

weakened as they struggled for cues in holiday-thinned trading.

Philippine stocks rose 0.8%, while Taiwanese stocks

rose 0.6%.

Markets await consumer confidence data from the United

States due late in the Asia day for further cues on the effect

of the Federal Reserve’s aggressive tightening cycle.

“The greater focus may be on the U.S. Core Personal

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Consumption Expenditures price index tomorrow… The data will

be looked upon to reflect the pace at which pricing pressures

moderate,” said Yeap Jun Rong, a market analyst at IG.

Most Asian currencies were weaker, with Thailand’s baht

weakening the most, at 0.3%, while the Singapore dollar

fell 0.2%.

The dollar index was last seen about 0.1% higher at

104.074.

“In light of ‘festive trading’, near term FX direction could

take greater cues from JPY mover, technical and risk sentiments

while thinner market liquidity may exacerbate some of these

moves,” analysts at OCBC said.

Indonesia plans to ban the export of a commodity to develop

the local processing industry, the president said, without

specifying which commodity. In the past, Indonesia has banned

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exports of nickel ore and crude palm oil.

Indonesia’s rupiah was broadly flat, trading at about

15,605 to the dollar, ahead of a key central bank move expected

on Thursday.

Bank Indonesia (BI) is expected to size down its rate hike

to 25 basis points (bps), according to a Reuters poll, after

three consecutive 50 bps moves. The bank has raised rates by a

cumulative 175 basis points over four meetings since August.

The central bank also said it expects 2023 headline

inflation to moderate to around 3%.

Late on Tuesday, Malaysia’s prime minister said the

country’s GDP growth this year will likely exceed earlier

forecasts of 6.5% to 7%, buoyed by its post-COVID-19 economic

reopening.

The ringgit still weakened about 0.1%, and stocks

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fell 0.3%.

Japan’s yen eased about 0.3%, after rising as much as

4.6% on Tuesday after its central bank widened the band around

its 10-year bond yield, a move seen as a sign that more policy

normalization may be on the way.

Yields in Asia rose for the second consecutive day, with

Indonesia’s benchmark yield 4.5 bps higher at

6.951%, and Singapore’s 2.2 bps higher at 2.917%.

HIGHLIGHTS:

** India imposes anti-dumping duty on stainless steel

seamless tubes and pipe imports from China

** China reports no new COVID-19 deaths for Tuesday vs five

deaths a day earlier

Asia stock indexes and currencies at

0405 GMT

COUNTRY FX RIC FX FX YTD INDEX STOCKS STOCKS

DAILY % DAILY YTD %

% %

Japan -0.30 -12.88 -0.74 -8.40

China -0.13 -8.83 -0.10 -15.64

India +0.07 -10.12 0.40 6.37

Indonesia -0.03 -8.68 0.33 3.17

Malaysia -0.14 -6.13 -0.29 -6.67

Philippines +0.11 -7.59 0.73 -8.67

S.Korea +0.12 -7.71 -0.08 -21.70

Singapore -0.17 -0.24 -0.19 3.97

Taiwan +0.06 -9.81 0.60 -21.76

Thailand -0.29 -3.97 0.30 -2.91

(Reporting by Harshita Swaminathan; Editing by Christopher

Cushing)

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