Asia’s Worst Performing Stock Market May Need a Rate Hike: Chart
Asia’s worst equity index this year may get a break if the Philippine central bank carry out its first rate hike since 2014
(Bloomberg) -- Asia’s worst performing equity index this year may get a break should the Philippine central bank carry out its first rate hike since 2014 on Thursday. “While the impact of a rate increase on inflation will take time, this will put a floor on the peso’s weakness against the dollar, helping pacify investors who are worried the selloff in equities will continue if the currency depreciation isn’t arrested," said Jonathan Ravelas, chief market strategist at BDO Unibank Inc. Since its Jan. 29 peak, the Philippine Stock Exchange Index has plunged more than 16 percent as overseas investors dumped shares and the peso slid.
To contact the reporter on this story: Ian Sayson in Manila at isayson@bloomberg.net.
To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Naoto Hosoda
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