China inflation relief sends stocks, dollar higher


China inflation relief sends stocks, dollar higher.

The Indonesia stock market has finished lower in two straight sessions, slipping more than 40 points or 0.8 percent along the way.

The safe haven yen pushed higher after data showed that China´s exports denominated in yuan fell 5.6 percent in September from a year earlier.

China's exports fell sharply in dollar terms in September from a year earlier, tumbling 10.0%, following a decline of 2.8% in August.

The dollar index posted its largest daily percentage loss in a month.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.4 per cent after dropping 1.1 per cent on Thursday, when weak Chinese export numbers hit global equities, stopped a rise in United States yields and halted the dollar's advance. Investors have priced in a roughly 70 per cent chance the Fed would nudge rates higher at its December policy meeting, a prospect reinforced by Wednesday's release of the last Fed monetary policy meeting minutes.

The dollar index rose 0.3 percent to 97.774.DXY.

It had advanced to a 2-1/2-month peak of 104.635 on Thursday before sliding to 103.340 after the Chinese trade data. The common currency was en route for a 1.4 percent weekly loss.

Meanwhile, the euro was at $1.1024, weakening under the dollar's strength and approaching a low in late July.

However, equities were still set for their largest weekly drop in over a month after a week which has seen expectations of a Federal Reserve rate hike build and substantial volatility in commodity prices.

Investors will have their latest chance to gauge whether the world's biggest economy is ready for tighter monetary policy through USA indicators due later including September retail sales and the University of MI consumer sentiment report.

The dollar has gained more than two per cent so far this month against a basket of currencies, boosted by U.S. rate hike expectations.

Minutes of the Fed's September meeting showed that the Federal Open Market Committee was deeply divided over the timing of the next interest rate hike, as several members agreed the Fed should raise rates in the near term if United States data continued to strengthen.

The Singapore dollar firmed as the central bank held policy steady, as expected, despite a surprise contraction in preliminary third-quarter GDP.

Thailand's stocks rose 4 percent and the baht gained about 1 percent versus the dollar after the government urged the country to remain calm after the death of King Bhumibol Adulyadej.

But the subsequent support came when the Energy Information Administration reported that USA crude oil inventories had jumped by 4.9 million barrels in the week to October 7.

Brent crude was up 0.3 percent at $52.19 a barrel, having risen to a one-year peak of $53.73 on Monday on expectations for an OPEC output cut.


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