Asia Morning Bites
ASEAN Morning Bytes
General market tone: Risk-on.
Markets are seen to remain upbeat as Trump signals flexibility on March trade deadline and Fed stays dovish.
EM Space: US-China trade negotiations continue with Fed Williams singing dovish tune
- General Asia: Fed Williams tuned a dovish leaf on Tuesday, indicating that the economy would need to take a turn before additional policy tightening was warranted. The dovish tilt from the erstwhile hawk is seen to boost risk sentiment, all the more with Trump indicating that the fast-approaching March deadline on tariffs was not cast in stone.
- Thailand: The Bank of Thailand releases policy meeting minutes. We will be gleaning the document for the policymakers thinking on resurgent Thai baht, while they have been signaling a stable policy this year and also measures to curb excessive currency movements. We continue to expect a spike in the political anxiety in the run-up to the 24 March election to exert weakening pressure on the THB.
- Philippines: The Philippines reported a balance of payments (BoP) surplus of $2.7 bn in January, up from $2.3 bn in the previous month after the nation issued $1.5 bn worth of Dollar-denominated debt early in the year. The current BoP also reflects the central bank’s foreign exchange operations and investment income from abroad, leading to the end-January gross international reserves of $82.5bn.
What to look out for: US-China trade talks and Fed minutes
- US durable goods (21 February)
- Indonesia policy meeting (21 February)
- Fed minutes (21 February)
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This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more