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Singapore’s dollar, stocks slip as growth forecast disappoints

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Singapore’s dollar and equities

weakened on Wednesday after the country projected economic

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growth would slow next year amid persistent inflationary

pressures, though most other emerging Asian stock markets rose.

The Singaporean dollar and stocks lost 0.2%

each after the city-state forecast growth would slow to between

0.5% and 2.5% in 2023 from about 3.5% this year.

“While we expect manufacturing activity to remain weak into

Q4 and 2023, the services sector recovery – driven by the

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revival in international travel – will likely provide a

significant offset,” analysts at Barclays wrote.

“The risk that stronger-than-expected GDP growth… or an

insufficient easing of tight labor market conditions could

prove significant enough to convince policymakers that another

round of tightening is warranted.”

Singapore had tightened monetary policy last month for the

fourth time this year to combat inflation, which is running near

at a 14-year peak.

Stocks in Malaysia traded roughly flat after two

straight sessions of losses as the wait for a new prime minister

dragged on for a fourth day, after the leading two contenders

failed to secure a majority and break a hung parliament.

The ringgit added 0.1%.

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Malaysia’s king is expected to meet with lawmakers from the

incumbent ruling coalition individually to help him determine

who will be prime minister.

Other currencies across the region were mixed while the U.S.

dollar steadied ahead of minutes of the Fed’s recent policy

meeting as investors looked for more clues on the bank’s stance

on future rates.

Philippines’ peso and the South Korean won

gained 0.2% and 0.3%, respectively, while Thailand’s baht

and Indonesia’s rupiah each eased 0.1%.

“Any deepening signs of concerns for the economy from Fed

members will be looked upon as a basis for moderating rate

hikes, which could further support risk sentiments for now,”

said Yeap Jun Rong, market strategist at IG.

Equities across the region firmed. Stocks in Manila

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rose over 1% to their highest level in two months. Thai

and Indonesian stocks gained 0.5% and 0.6%,

respectively.

HIGHLIGHTS

** Singapore’s Oct CPI data due around 0500 GMT

** In the Philippines, top index gainers are Ayala Land Inc

and Universal Robina Corp

** Singapore’s 10-year benchmark yield is up 0.4 basis

points at 3.091%

Asia stock indexes and currencies

at 0353 GMT

COUNTRY FX RIC FX FX INDE STOCKS STOCKS

DAILY % YTD % X DAILY YTD %

%

Japan -0.08 -18.5 <.n2>

China 7 EC>

India -0.11 -9.08 <.ns ei>

Indonesi -0.03 -9.24 <.jk a se>

Malaysia +0.07 -8.92 <.kl se>

Philippi +0.17 -10.9 <.ps nes i>

S.Korea 1 11>

Singapor -0.19 -2.26 <.st e i>

Taiwan -0.01 -11.3 <.tw ii>

Thailand -0.11 -7.56 <.se ti>

(Reporting by Himanshi Akhand in Bengaluru; Editing by Kim

Coghill)

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