Taiwan led most of Asia’s emerging market equities higher on Friday as investors cheered positive US economic data and plans for trillions of dollars in federal spending, while Malaysian shares fell as COVID-19 cases hit a daily record.
The region’s currencies held on to gains ahead of US inflation data, with the Taiwan dollar and the South Korean won leading gains against the greenback.
On Thursday, the New York Times reported that President Joe Biden will seek $6 trillion in US federal spending for the 2022 fiscal year, while data showed that the number of Americans filing jobless claims dropped more than expected last week.
“Asia appears to feel that some of that goody bag will fall their way, and Asian equity markets have risen today,” Jeffrey Halley, a senior market analyst at brokerage OANDA, said in a note.
Prior to market opening, the People’s Bank of China (PBOC) set the yuan midpoint rate at 6.3858 per dollar, firmer than the previous fix of 6.403.
“That has lifted the currencies of neighboring South Korea and Taiwan…PBOC made it easier for financial institutions to secure off-shore funding for their balance sheets,” Halley said.
US inflation data due at 1230 GMT on Friday will also be a big focus, as a high reading could fuel expectations of policy tightening by the Federal Reserve.
Taiwanese stocks jumped 1.6 percent, hitting their highest in over two weeks.
The island’s first batch of 150,000 COVID-19 vaccine doses, out of more than 5 million ordered from Moderna Inc, is set to arrive on Friday.
Philippine shares recouped losses accrued earlier in the session to rise 0.1 percent. The benchmark is set to gain nearly 8 percent for the week.
