* US debt ceiling talks weigh on sentiment * Weak data on new house prices in China point to slow recovery * Singapore’s domestic exports excluding oil fall 9.8% By Mehr Bedi, May 17 (Reuters) Softer China economic data and US debt ceiling talks dampened investor sentiment and fueled concerns about a global slowdown in growth. China’s new home prices rose for a fourth straight month in April, but at a slower pace, official data revealed, adding to concerns about the pace of recovery in a sector critical to China’s economic health. It followed dismal data on Tuesday that showed real estate investment and sales fell sharply. “Disappointing Chinese activity data in April confirm our repeated warnings of over-optimism about reopening and the ensuing blind spots to China’s structural and geopolitical challenges,” said Vishnu Varathan, head of economics and strategy at Mizuho Bank. The Shanghai SE Composite Index and Hong Kong Benchmark Index fell 0.5% and 1% respectively, while the yuan lost 0.3%. The currencies of China’s major trading partners also took a hit. The Malaysian ringgit fell 0.6% to a more than two-month low, and the Indonesian rupiah fell 0.4%. In the US, President Joe Biden and Republican top congressman Kevin McCarthy moved closer to a deal to avoid a looming default. However, regional stock markets were mostly mixed. “Overall, sentiment doesn’t seem to have a strong direction at the moment, which could be (due to) concerns about next week’s US debt ceiling talks and PCE data,” said Robert Carnell, regional head of research Asia. Pacific at ING. Stocks in Taiwan, South Korea, Malaysia and the Philippines gained between 0.3% and 1.6%, while India and Singapore fell 0.3% and 1.1% respectively. Singapore’s drop to a nearly two-month low was driven by data showing the country’s domestic exports, excluding oil, fell 9.8% year-on-year in April, weighed down by declines in both electronic and non-electronic products . The lackluster external demand implies that the momentum of domestic exports, excluding oil, could be mired in a year-on-year contraction until the third quarter, said Selena Ling, chief economist of OCBC. Meanwhile, uncertainty persists over who will become Thailand’s next prime minister, despite the fact that the two main opposition parties have agreed to form a ruling coalition, due to possible opposition from a military-appointed senate, the the party’s position on a royal insult bill and a complaint against its leader. The Thai baht, which lost 1.3% since last week, lost 0.6% while stocks in the country fell 1.1%. HIGHLIGHTS: ** U.S. consumer spending appears solid at the start of Q2 ** Japan emerges from recession after post-COVID consumer recovery ** Federal Reserve Bank of Cleveland President Mester says he is not yet at the point where it will interest rate may ‘hold’ **Vietnam c .bank bought $6bn this year to consolidate currency reserves COUNTRY FX RIC FX FX INDE STOCKS STOCKS DAILY % YTD % X DAILY YTD % % Japan -0.31 -4.15 <.N2 0,80 14,37 25> China EC> India -0.19 +0.43 <. NS -0,30 0,70 EI> Indonesia -0.42 +4.62 <.JK 0,01 -2,53 a SE> Malaysia -0.64 -2.63 <.KL 0,27 -4,56 SE> Philippi -0.21 -0.94 <.PS 0,73 1,07 nes I> S.Korea 11 > Singapore -0.11 -0.14 <.ST -1,16 -2,29 e I> Taiwan -0.02 -0.34 <.TW 1,60 12,64 II> Thailand -0.57 +1.02 <.SE -1,13 -8,77 TI> (reporting by Mehr Bedi in Bengaluru; Editing by Jamie Freed and Savio D’Souza)
EMERGING MARKETS – Asian Currencies Stumble On US Debt Ceiling Talks, China Data
