Asian currencies, stocks fall on China data, ringgit top loser

Major Asian currencies and share markets dropped on Monday as underwhelming economic growth data suggested China's post-pandemic bounce was over, while the prospect of more US interest rate hikes also dampened the outlook for global demand. 

The Malaysian ringgit and Chinese yuan led the losses ,down 0.6 per cent and 0.4 per cent with other local currencies like the
rupiah in Indonesia and peso in Philippines also falling.

Dollar index 

The US Dollar index, measuring its value against a basket of major trading partner's currencies, was steady at 99.936. Last week, Federal Reserve Governor Christopher Waller said he expected two more quarter percentage point rate hikes this year to bring inflation down, and favoured making the first hike later this month. 

The ringgit has declined over 3.3 per cent since the start of the year, under-performing against all its emerging Asian peers, as
investors remained on guard against potential political instability, falling external demand, and the impact of   
slowing growth in China. 

Chinese economy

China's economy grew 0.8 per cent in April-June from the previous quarter, just beating market expectations, and raising
expectations that Beijing will deliver more economic stimulus.
    
Industrial output also unexpectedly accelerated in June from the month earlier though retail sales just grew 3.1 per cent in June
after rising 12.7 per cent in May. 

"Perhaps the bar for China’s recovery had been set too high, although it would also be fair to say that China’s economic data
to date has been tepid at best," said analysts at Maybank in a note.
    
On Monday, the People's Bank of China kept the interest rate unchanged on 103 billion yuan ($14.43 billion) worth of one-year
medium-term lending facility (MLF) loans .

The Singapore Dollar fell 0.1 per cent after data showed that the country's non-oil domestic exports fell 15.5 per cent for the month. Thailand's baht and stock market trod water while investors waited to see who would emerge as the next leader of the government. 

Thailand's Move Forward party filed a motion in parliament on Friday seeking to curb the power of the military-appointed Senate, a day after the body thwarted its party leader's bid to become prime minister. The baht fell 0.2 per cent  while shares in Bangkok were flat.  Mainland China shares led the falls in Asia, with Shanghai's benchmark index falling 1.2 per cent . Bracing for a typhoon,  Hong Kong cancelled its morning trading session, and could cancel the afternoon session too.
    
Stock markets in Taiwan and Indonesia gained 0.1 per cent and 0.4 per cent respectively whereas shares in Kuala Lumpur and Singapore fell 0.6 per cent  and 0.2 per cent.