Manila stocks jump on rate cut hopes; currencies muted as US election looms

• Philippine CPI below estimates
• Thai stocks led by Delta Electronics
• Expect baht to regain in Dec – analyst

Philippine stocks rallied on Tuesday after the country’s quickening inflation signaled a sustained cycle of policy easing, while most emerging Asia currencies were muted ahead of the U.S. presidential election.

READ: Philippines annual inflation quickens to 2.3% in October

Shares in Manila <.PSI> gained up to 1.2%, set for their strongest session since mid-October while stocks in Thailand <.SETI> climbed 0.9%, led by gains in power supplies manufacturer Delta Electronics.

Data on Tuesday showed, Philippine’s consumer price index rose 2.3% in October from 1.9% reported the previous monthand was below the 2.4% forecast in a Reuters poll.

This gives the central bank more room to maintain its policy easing cycle after it cut the benchmark interest rate by 25 basis points last month, for the second time this year. The peso was trading flat against the greenback.

“Inflation is expected to remain below 3.0% for the rest of the year, and much of the first half of 2025, paving the way for another 25 bps rate cut by the Bangko Sentral ng Pilipinas,” said analysts at Citi.

Bangkok stocks hit their highest since late October, led by Delta Electronics <DELTA.BK>, which jumped 7.5% to a record high.

“So without a positive impact from Delta, I think the Thai market won’t see a significant rally which should be in line with other Asia markets as market players are in defensive, wait-and-see mode until the U.S. election results come in,” Poon Panichpibool, a markets strategist at Krung Thai Bank.

The Thai baht <THB=TH>, among the few Southeast Asian currencies which have gained since the start of the year, was trading 0.3% higher.

“Over medium to long-term, I still expect baht to regain some strength, especially in December and early Q1/2025 due to the high season of foreign tourists and potential return of foreign fund flows back into the Thai capital market,” Panichpibool said.

Currency markets in emerging Asia were mostly muted, with investors in a wait-and-see mode until it becomes clear who will win the U.S. presidential election.

The Malaysian ringgit <MYR=> added 0.3% while the Indonesian rupiah was flat.

Shares in Jakarta <.JKSE> and Mumbai <.NSEI> were trading 0.2% and 0.6% lower.

HIGHLIGHTS

** Indonesia’s Q3 GDP growth at 4.95% y/y

** China, HK stocks rise on signs of economic improvement

—Reporting by Rishav Chatterjee and Adwitiya Srivastava in Bengaluru; Editing by Clarence Fernandez and Eileen Soreng