South Korea’s won and Malaysia’s ringgit strengthened as speculation a U.S. economic stimulus plan will be approved helped damp risk aversion.
Currencies and shares in most Asian markets open for trading advanced after U.S. President Barack Obama lobbied lawmakers yesterday to win support for $816 billion of spending and tax cuts to help end a recession in the region’s biggest export market. The Philippine peso gained on optimism sliding borrowing costs will support economic growth.
“Markets are eyeing the U.S.’s next move, with some news of policy stimulus,” said Joanna Tan, a regional economist at Forecast Pte. in Singapore. “So there’s upward bias in regional currencies today.”
The won rose 1.1 percent to 1,376.10 per dollar at the 3 p.m. local close, after earlier sliding as low as 1,399.10, according to Seoul Money Brokerage Services Ltd. The ringgit climbed 1 percent to 3.5890 in Kuala Lumpur and the peso rose 0.2 percent to 46.935 in Manila.
Financial markets in Malaysia, Singapore and South Korea opened for the first time this week following Lunar New Year holidays, while China, Hong Kong and Taiwan remained closed.
Korea’s Kospi stock index surged 5.9 percent, leading regional share gains, as global funds bought more of the nation’s shares than they sold for the first time in five days. Those purchases and repatriation of exporters’ income before month-end bookkeeping helped lift the won.
“There are expectations for exporters’ settlements as it nears month-end,” said Jay Won, a currency dealer with Korea Exchange Bank in Seoul. “The strong gains in local stocks are also being priced into the currency market.”
From Bloomberg News.
Currencies and shares in most Asian markets open for trading advanced after U.S. President Barack Obama lobbied lawmakers yesterday to win support for $816 billion of spending and tax cuts to help end a recession in the region’s biggest export market. The Philippine peso gained on optimism sliding borrowing costs will support economic growth.
“Markets are eyeing the U.S.’s next move, with some news of policy stimulus,” said Joanna Tan, a regional economist at Forecast Pte. in Singapore. “So there’s upward bias in regional currencies today.”
The won rose 1.1 percent to 1,376.10 per dollar at the 3 p.m. local close, after earlier sliding as low as 1,399.10, according to Seoul Money Brokerage Services Ltd. The ringgit climbed 1 percent to 3.5890 in Kuala Lumpur and the peso rose 0.2 percent to 46.935 in Manila.
Financial markets in Malaysia, Singapore and South Korea opened for the first time this week following Lunar New Year holidays, while China, Hong Kong and Taiwan remained closed.
Korea’s Kospi stock index surged 5.9 percent, leading regional share gains, as global funds bought more of the nation’s shares than they sold for the first time in five days. Those purchases and repatriation of exporters’ income before month-end bookkeeping helped lift the won.
“There are expectations for exporters’ settlements as it nears month-end,” said Jay Won, a currency dealer with Korea Exchange Bank in Seoul. “The strong gains in local stocks are also being priced into the currency market.”
From Bloomberg News.