Asian markets steady ahead of US payrolls data
US non-farm payrolls due later on Friday
Thailand stocks near eight-month high
Indonesia stocks touch record high
Updates at 0551 GMT
By Roushni Nair and Sneha Kumar
Sept 6 (Reuters) -Asian equities were poised to end a turbulent week on a steady note, with Thailand's stocks leading the charge on Friday, while currencies edged higher ahead of crucial U.S. monthly payrolls data that could set the stage for outsized rate cuts.
The MSCI Emerging Markets index .MSCIEF increased 0.4% on Friday, but was on track for a weekly decline of more than 2%.
Thailand's benchmark stock index .SETI gained 1.8% to its highest since Jan. 5 and was on track for its strongest weekly rise since January 2021 with a near 5% jump as a stabilising political environment and measures taken to boost capital flows improved risk appetite.
Taiwan's shares .TWII rose 1.1%, but were poised for their biggest weekly drop since mid-April. Stocks in Jakarta .JKSE advanced 1% to a record high of 7,754.48.
Market focus was on the U.S. nonfarm payrolls data due later in the day and the report is expected to influence the size of the interest rate cut that the U.S. Federal Reserve will likely deliver on Sept. 18.
Traders view a quarter-point reduction as the more probable action, but they also assign about a 49% chance to a 50-basis-point cut, according to rate futures contracts.
"A much weaker report may further raise concerns about its cooling labour market," said Christopher Wong, a currency strategist at OCBC.
"Risk-off trades may pressure high-beta FX, including AUD, NZD, KRW, while JPY, CHF and to some extent, USD can benefit."
Asian currencies traded higher, with Thailand's baht THB=TH, the Taiwanese dollar TWD=TP, and South Korea's won KR=KFTC gaining 0.2%, 0.3%, and 0.4%, respectively.
Indonesia's rupiah IDR= and Malaysia's ringgit MYR= added 0.2% each.
Mixed U.S. data has heightened concerns about economic growth in the world's largest economy and tarnished the dollar's allure.
The dollar index =USD, a measure against six major peers, hovered near a one-week low after slipping about 0.2% overnight.
The MSCI's emerging market currencies index .MIEM00000CUS was last up 0.3%. It has been trading higher for the past six weeks.
This week, inflation data from Asia heightened expectations for rate cuts. Inflation in Thailand and the Philippines came in lower than expected for last month and fell to a 3-1/2-year low in South Korea, while price pressures in Indonesia were table.
"BSP (Bangko Sentral ng Pilipinas) is likely to follow through with additional rate cuts over the coming quarters, while Bank Indonesia and Bank of Korea may also start easing within this year," said Frances Cheung, a rates strategist at OCBC.
In Malaysia, the central bank maintained its overnight policy rate at 3.00% for the eighth consecutive meeting on Thursday.
HIGHLIGHTS:
** Indonesian 10-year benchmark yields fall 2.3 basis points to 6.889%
** Japan consumer spending barely grows in July
Asia stock indexes and currencies at 0612 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | +0.60 | -1.07 | .N225 | -0.51 | 9.55 |
China | CNY=CFXS | +0.07 | +0.20 | .SSEC | -0.46 | -6.71 |
India | INR=IN | +0.09 | -0.84 | .NSEI | -1.02 | 14.52 |
Indonesia | IDR= | +0.23 | +0.23 | .JKSE | 0.66 | 6.31 |
Malaysia | MYR= | +0.20 | +6.08 | .KLSE | -0.46 | 13.92 |
Philippines | PHP= | +0.16 | -0.90 | .PSI | 0.37 | 7.50 |
S.Korea | KRW=KFTC | +0.34 | -3.09 | .KS11 | -1.27 | -4.24 |
Singapore | SGD= | +0.15 | +1.62 | .STI | 0.14 | 6.88 |
Taiwan | TWD=TP | +0.46 | -3.72 | .TWII | 1.17 | 19.54 |
Thailand | THB=TH | +0.22 | +1.91 | .SETI | 1.60 | 0.77 |
Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
Asian stock markets https://tmsnrt.rs/2zpUAr4
Reporting by Roushni Nair and Sneha Kumar in Bengaluru; Editing by Jamie Freed and Subhranshu Sahu
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