Asian monies down on stocks, S'pore GDP<\/p>\n
Nirmala Menon, Dow Jones, Singapore<\/p>\n
Disappointing economic growth data from Singapore Thursday and
\nplummeting share prices spooked Asia's currency markets and sent
\nthe Singapore dollar back to levels unseen since mid-June.<\/p>\n
Regional stock markets were roiled after the Dow Jones
\nIndustrial Average plunged to five-year lows overnight.<\/p>\n
South Korean stocks were the biggest casualty of the day, as
\nthe key index plunged 5.8 percent to an 11-month low, and dragged
\nthe won to its weakest levels since mid-May.<\/p>\n
\"There's a bit of contagion from a combination of (falling)
\nregional stock markets and bad numbers from Singapore,\" a
\ncurrency trader at a Singapore-based European bank said.<\/p>\n
Singapore's third-quarter gross domestic growth data, the
\nfirst to be issued in Asia, raised fears of another recession and
\nadds to existing uncertainties about the U.S. and the broader
\nglobal economy, analysts said.<\/p>\n
The city state's GDP grew by 3.7 percent on year in the third
\nquarter - far short of the average 6.5 percent predicted in a Dow
\nJones Newswires poll - and shrank 10.3 percent on an annualized
\nbasis quarter-on-quarter, according to advance estimates issued
\nby the government.<\/p>\n
\"Singapore's data suggests softening growth in Asia and that's
\nworrying, as reflected in the currency market, said Chong Hui
\nChin, currency strategist at J.P. Morgan Chase Bank.<\/p>\n
Late in Asia, the dollar was quoted around S$1.7932, up from
\nS$1.7893 late Wednesday.<\/p>\n
The dollar is expected to extend its gains against the
\nSingapore dollar overnight as overseas market participants try to
\ncover their short positions, traders said.<\/p>\n
In South Korea, the dollar ended at 1,257.8 won, slightly
\nbelow its intraday peak of 1,259.1 won, but sharply up from
\n1,246.6 won at the previous close. This was the won's weakest
\nfinish since May 17.<\/p>\n
Domestic banks stepped up their dollar buying to cover
\nprevious short positions as the U.S. currency advanced, a trader
\nat South Korea's Woori Bank said.<\/p>\n
A regional currency trader at a European bank in Singapore
\nsaid a number of market players had bet that the Bank of Korea
\nwould hike its key interest rate Thursday, and had built up
\nshort-dollar positions.<\/p>\n
But these players had to scramble to cover their positions
\nwhen the central bank left rates unchanged, he said.<\/p>\n
Foreign investors who sold South Korean shares heavily this
\nweek also joined in the dollar buying spree, traders said.<\/p>\n
In Thailand, news that Fitch Ratings has revised the outlook
\non the country's sovereign ratings to positive from stable
\nsparked an initial dollar sell-off as market players viewed it as
\na sign the economy is strengthening, traders said.<\/p>\n
But the selling was short-lived and the dollar soon resumed
\nits uptrend amid generally negative sentiment toward Asian
\ncurrencies.<\/p>\n
Late in Asia, the dollar was quoted around 43.795 baht, up
\nfrom 43.745 baht at the Asian close Wednesday.<\/p>\n
The Philippine peso also weakened slightly in tandem with its
\nregional counterparts.<\/p>\n
The dollar ended at 52.725 peso on the Philippine Dealing
\nSystem, up from 52.700 peso Wednesday.<\/p>\n
The Indonesian rupiah fell as local companies bought dollars
\nto repay debt and fund imports.<\/p>\n
The dollar ended at Rp 9,005, up from Rp 8,998 Wednesday, and
\nalso above its opening level of Rp 9,000.<\/p>\n
Traders said the central bank wasn't active in selling dollars
\nThursday.<\/p>\n
Taiwan's financial markets were closed for a public holiday.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/asian-monies-down-on-stocks-spore-gdp-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }