SF: Asian Currencies Gain as China Manufacturing Boosts Outlook
Dec. 1 (Bloomberg) -- Asian currencies gained, led by South Korea's won and the Philippine peso, as data showing China's manufacturing expanded at the fastest pace in seven months boosted the region's export outlook.
The Bloomberg-JPMorgan Asia Dollar Index strengthened 0.2 percent to 114.54 as of 4:49 p.m. in Hong Kong. South Korea's won climbed 0.7 percent to 1,151.25 per dollar, according to data compiled by Bloomberg. The Philippine peso added 0.5 percent to 43.81, while the Thai baht and the Singapore dollar climbed 0.6 percent to 30.03 and S$1.3142, respectively.
China's Purchasing Managers' Index rose to 55.2 in November from 54.7 the previous month, the nation's logistics federation said today. The U.S. Institute for Supply Management-Chicago Inc. said yesterday its business barometer climbed to 62.5 last month, the highest level since April. Asian currencies yesterday completed a monthly decline and the euro traded near an 11-week low as global funds slowed investments in emerging-market assets on concern Europe's debt crisis will spread.
"Both the U.S. and China data helped to buoy sentiment in Asia today," said Philip Wee, a Singapore-based senior currency economist at DBS Group Holdings Ltd. "But the euro is struggling. Ever since the euro has been on the decline, sentiment in Asia has been weakening."
China is the No. 1 destination for exports from South Korea, Taiwan and Thailand. Overseas sales account for about half of South Korea's gross domestic product and more than two- thirds of Thailand's and Taiwan's.
The Chinese yuan was at 6.6649, compared with 6.6670 yesterday, as the manufacturing data raised concern policy makers may seek to cool China's economy.
The won climbed from near a two-month low after official data showed rising exports and slowing inflation, bolstering optimism about the economy.
Export Growth
The government said today exports expanded for a 13th consecutive month in November from a year earlier, while the country's consumer price growth slowed to within the central bank's target range.
Overseas sales rose 24.6 percent, while the consumer price index advanced 3.3 percent last month from a year earlier. The index rose 4.1 percent in October, surpassing the Bank of Korea target of 2 percent to 4 percent inflation through 2012.
Thailand's baht gained by the most since Oct. 6 after the Bank of Thailand unexpectedly raised its benchmark interest rate.
Policy makers increased the benchmark one-day bond repurchase rate by a quarter of a percentage point to 2 percent after leaving it unchanged at the previous meeting. Twelve of 17 economists surveyed by Bloomberg expected no change.
Thai Growth
The baht on Nov. 29 reached a two-month low of 30.46 as overseas investors sold $208 million more Thai equities than they bought last month on concern Europe's sovereign-debt crisis will broaden.
"This means, from the authorities point of view, that Thai growth is strong enough to withstand rate increases," said Nalin Chutchotitham, a Bangkok-based analyst at Kasikornbank Pcl. "Investors are looking for more good reasons to come back because the Asian growth is still there. Investors remain cautious at this moment and are waiting to see how well the global economy is looking."
Elsewhere, Malaysia's ringgit strengthened 0.5 percent to 3.1555, Indonesia's rupiah rose 0.4 percent to 9,018 and the Taiwan dollar was little changed at NT$30.852.
--With assistance from Frances Yoon in Seoul. Editors: Andrew Janes, Ven Ram
