EMERGING MARKETS – Indonesian rupiah extends gains on palm oil news, Asia FX bullish

Band Harish Sridharan

June 3 (Reuters)The rupiah extended its gains on Friday as Indonesia’s decision to issue palm oil export permits after lifting a ban on shipments last week supported sentiment, while other regional currencies rose ahead of a crucial US jobs report.

Indonesian rupiah RDI=which jumped 0.7% on Thursday, rose another 0.4% to its highest since April 27, while the Korean gained KRW=KFTC was up 1% and poised to record its best week since mid-March.

Most currencies in Asia, which had struggled to post gains during the week, strengthened as market participants awaited key US jobs data later in the trading day. world for clues on the Federal Reserve’s tightening trajectory.

On Thursday, a senior Indonesian Commerce Ministry official said the government had issued 160 export permits to 18 companies to ship palm oil. The country previously imposed a three-week export ban to control soaring domestic prices of palm oil-based cooking oil.

“Apart from the general dollar easing, news that authorities are granting more export permits for palm oil likely also contributed to IDR sentiment,” Maybank analysts said in a note.

The yield on Indonesia’s 10-year benchmark note ID10YT=RR hit its lowest level since April 18.

Markets in China, Hong Kong, Taiwan and Thailand were closed, reducing trading volumes in Asia.

Meanwhile, South Korea released data showing its consumer price index rose 5.4% in May from a year ago due to a global spike in materials and materials costs. food, beating growth of 5.1% estimated in a Reuters poll and bolstering the case for further rate hikes.

“The central bank’s likely intense focus on inflation should favor urgency over patience and suggests the rises will continue to be back-to-back,” said Barclays economist Brian Tan.

He now expects the Bank of Korea to raise its key rate by 25 basis points in the remaining four meetings this year.

Stocks in the region were also expected to end the week on stronger footing as investors looked to the US jobs report later in the day to confirm a slowdown in the jobs market, which could convince the Fed to slow interest rate hikes. Later in the year. MKTS/GLOB

Stocks in Singapore .STISeoul .KS11 and Mumbai .NSEI traded above.

Jakarta Stocks .JKSE jumped nearly 1% to its highest level since late April, a day after data showed that while Indonesia’s inflation rate accelerated in May, it was still within the target range of the central bank.

STRONG POINTS

** The South Korean won is on course for the best week since mid-March

** The Indonesian rupiah hits its highest level since April 27

** Yield on Indonesia’s 10-year benchmark ID10YT=RR lowest since April 18

Asian Stock Indices and Currencies at 0428 GMT

COUNTRY

FXRIC

DAILY FX %

FX YTD%

INDEX

DAILY STOCKS %

INVENTORY YTD%

Japan

JPY=

-0.03

-11.39

.N225

1.14

-3.70

China

CNY=CFXS

-4.58

.SSEC

-12.21

India

RNI=IN

+0.12

-4.11

.NSEI

0.84

-3.38

Indonesia

RDI=

+0.35

-1.25

.JKSE

0.81

9.50

Malaysia

MYR=

+0.11

-5.02

.KLSE

-0.36

-1.48

Philippines

PHP=

+0.02

-3.37

.PSI

-0.02

-6.13

South Korea

KRW=KFTC

+1.00

-4.11

.KS11

0.42

-10.33

Singapore

CAD=

-0.06

-1.60

.STI

0.03

3.33

Taiwan

TWD=TP

-5.78

.TWII

-9:15 a.m.

Thailand

THB=TH

-2.77

.SETI

-0.60

Graphic: world exchange rates https://tmsnrt.rs/2RBWI5E

Asian scholarshipshttps://tmsnrt.rs/2zpUAr4

(Reporting by Harish Sridharan in Bengaluru; Editing by Sonali Desai)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Steve R. Hansen