* South Korean won drops more than 1%
* Indonesian inflation rises in November
* Thai baht rises as outlier in region
By Archishma Iyer
Dec 1 (Reuters) - Most Asian currencies were softer on Friday, with the
South Korean won suffering the biggest hit, after the dollar steadied overnight
on commentary from Fed officials which pushed back market expectations on a
quick pivot to rate cuts.
The South Korean won depreciated nearly 1.2%, poised for its
worst day since early April to trade at 1,306.2 per dollar.
Data overnight showed that U.S. personal consumption expenditures price
index moderated in October, while inflation in Europe also cooled, leading to
expectations that their respective central banks are likely to stop hiking rates
further.
However, some Fed officials cautioned that it is "too early to know" if the
Fed is finished with rate increases, which pushed the dollar higher.
The dollar index which measures the strength of the greenback against
six major rivals, was at 103.33 as at 0410 GMT after having risen more than 0.5%
overnight.
"However, we expect this rebound as a whole to be short-lived and that the
greenback should move back down again in December amid a seasonally weak
period," analysts at Maybank said.
Other Asian units like the Malaysian ringgit, Philippines peso
and the Taiwan dollar also lost ground, trading flat to down 0.5%.
The Indonesian rupiah lost around 0.2%. Inflation picked up in
Southeast Asia's largest economy but stayed within the central bank's target
range, even as the central bank governor warned that inflation could pick up
again next year.
"The anticipated pickup in price pressures next year will likely prevent
Bank Indonesia from cutting rates early with the policy rate likely untouched
until the second half of the year," analysts from ING wrote.
Separately, Taiwan, Thailand and Philippines and South Korea are set to
release inflation data next week, which could provide further clues on how their
respective central banks could react in terms of policy rates.
Central banks in South Korea and Thailand had stood pat on their rates
earlier this week. Moreover the Reserve Bank of India is expected to hold off
hiking its interest rates as well.
The Thai baht was the only outlier in the region rising as much as
0.5%, after the currency lost as much as 1.1% in the previous session.
Among Asian equities, shares in Bangkok, Seoul and
Jakarta fell between 0.1% and 1%, while stocks in Manila and
Singapore rose 0.1% and 0.4%.
HIGHLIGHTS:
** Indonesia's benchmark 10-year bond yield steady at 6.627%
** Contrasting China November factory surveys highlight need for stronger
stimulus
** GLOBAL ECONOMY-Asia factory activity weakens, uncertainty on China clouds
outlook
Asia stock indexes and currencies at 0410 GMT
COUNTRY FX RIC FX FX YTD INDEX STOCKS STOCKS
DAILY % % DAILY YTD %
%
Japan +0.06 -11.47 -0.02 28.30
China -0.03 -3.33 -0.32 -2.25
India +0.12 -0.69 0.43 11.68
Indonesia -0.19 +0.19 -0.42 2.93
Malaysia -0.43 -5.92 0.01 -2.84
Philippines +0.00 +0.38 0.20 -5.02
S.Korea -1.24 -3.19 -1.08 12.14
Singapore -0.02 +0.16 0.41 -5.10
Taiwan -0.46 -2.22 -0.05 23.25
Thailand +0.10 -2.06 0.03 -17.27
(Reporting by Archishma Iyer in Bengaluru; Editing by Kim Coghill)
