Philippine peso retreat after signs of economic slowdown
The Philippine peso led declines in Asian currencies after reports signaled manufacturing shrank in China and Europe, damping demand for emerging-market assets.
The peso and South Korea’s won traded near one-week lows and China’s yuan snapped a two-day advance as Asian stocks retreated from a six-month high. HSBC Holdings Plc and Markit Economics released yesterday a preliminary reading of 49.7 for February of an index measuring output in the world’s second- largest economy. A number below 50 points to a contraction. A similar measure for Europe dropped to 49.7 from 50.4 in January, according to a separate report.
“The Asian recovery story is losing some traction especially with weakening exports and manufacturing data of late,” said Choong Yin Pheng, manager of economic and bond research at Hong Leong Bank Bhd. in Kuala Lumpur. “Demand for risk currencies is affected, given the debt event in Europe.” [full story…]