* Indonesian 10-yr yield at 3-month high * Most equities advance; Chinese shares tick lower * Bank Indonesia seen hiking key rate by 50 bps – Reuters poll By Jaskiran Singh Oct 18 (Reuters) – Asian currencies appreciated against a weaker dollar and equities advanced on Tuesday as risk appetite globally improved after an upbeat start to the earnings season in the United States and a reversal in Britain’s financial policy. The South Korean won hovered around an over one week-high level, while Thailand’s baht appreciated about 0.3%. Currencies in Singapore, Malaysia and India strengthened up to 0.2%. The risk-on sentiment spilled over into Asian equities as well, with shares in the Philippines on track for their sixth straight session of gains, jumping 1.8%, while South Korea’s KOSPI index advanced 1.4%. India’s Nifty 50 and Thailand shares gained 1.1% and 0.9%, respectively, while shares in Singapore remained supported above the 3,000-mark. In Indonesia, the rupiah appreciated 0.1% to trade at 15,468 a dollar, while the country’s 10-year benchmark yield touched a near three-month high owing to a sell-off by foreign investors. Analysts at Maybank said the recent depreciation in the rupiah – down more than 6% since June – has eroded the attraction for Indonesian government bonds, which are one of the highest yielding in the region. Separately, a Reuters poll showed Bank Indonesia, until recently one of the world’s last dovish central banks, will deliver a second successive half-point interest rate hike on Thursday as it looks to catch up with its peers and tackle inflationary pressures. Maybank analysts also see an over quarter-point hike on Thursday, and expect bigger hikes if the rupiah falls below 15,500-level per dollar. Meanwhile, global sentiment improved after Britain’s new finance minister Jeremy Hunt reversed course on controversial fiscal measures and strong start to U.S. corporate earnings, which lifted the Wall Street overnight. The U.S. dollar index, although up against Japan’s yen, witnessed a pull-back against sterling and other major peers, further boosting emerging currencies. Meanwhile, China’s yuan ticked higher while domestic equities fell 0.3% amid the nation’s once-in-five-year Communist Party Congress. Beijing delayed the release of economic indicators scheduled for publication this week, including its third-quarter gross domestic product data due on Tuesday. The data was expected to show that China’s GDP expanded 3.4% in the period from July to September, according to a Reuters poll, as recent supportive government policies have started to impact the economy. Separately, Japanese Finance Minister Shunichi Suzuki warned of appropriate and decisive action against excessive currency moves driven by speculators, suggesting market interventions were possible after the yen fell to a 32-year low. HIGHLIGHTS: ** Thailand’s economic recovery to continue despite slowing growth elsewhere – Fitch Ratings ** Taiwan Sept export growth seen cooling further – Reuters poll ** Philippines’ Marcos ready to defend peso, fight inflation Asia stock indexes and currencies at 0645 GMT COUNTRY FX RIC FX FX INDE STOCKS STOCKS DAILY % YTD % X DAILY YTD % % Japan +0.10 -22.7 <.N2 1.4 5.68 0 25> China 1 EC> India +0.15 -9.60 <.NS 1.05 0.80 EI> Indonesi +0.10 -7.89 <.JK 0.23 4.03 a SE> Malaysia +0.08 -11.6 <.KL 0.44 -9.45 1 SE> Philippi +0.08 -13.4 <.PS 1.76 -14.70 nes 0 I> S.Korea 5 11> Singapor +0.20 -4.87 <.ST 0.20 -3.26 e I> Taiwan +0.02 -13.4 <.TW 1.22 -27.96 9 II> Thailand +0.26 -12.0 <.SE 0.90 -4.34 6 TI> (Reporting by Jaskiran Singh in Bengaluru; Editing by Saumyadeb Chakrabarty)
