Malaysia ringgit up more than 3 pct to near 2-month high

Energy and oil stocks were among the main drivers behind the S&P/ASX 200’s strength, with Santos jumping 8.55% to take its weekly gains to 43%, while Woodside Petroleum advanced 2.6% and extended its weekly rally to 10%.

“The dollar in the near-term will likely be pressured by slightly improving risk sentiment – due largely to a recovery in oil prices – that has underpinned resources currencies”, Kurihara added. Commodity currencies and emerging Asian currencies have enjoyed a banner week as many investors pushed back expectations for the timing of Fed lift-off into next year after last week’s lacklustre U.S. jobs data.

A short position is a bet that profits from a decline in the price of an asset.

“But, the problem is not over when the Federal Reserve’s interest rate has not gone up and China’s economy has not recovered”, he said as quoted by Bloomberg, Friday, October 9.

The benchmark share gauge in Kuala Lumpur has gained 5 per cent this week and the Jakarta Composite Index has surged 9.4 per cent. Foreign funds bought a net US$148 million of Indonesian stocks in the first four days of the week, set for the biggest inflow since April, exchange data show. Indonesian exports fell for 11 consecutive months through August, while investor confidence in Malaysia has been shaken by allegations of corruption against Prime Minister Najib Razak.

On Thursday, minutes from the Fed’s closely watched September policy board meeting showed a few members were concerned about China’s struggles, the strong dollar and persistently low inflation. It last traded at $0.7279, up 0.3 percent.

“Recent global and financial market developments might restrain economic activity somewhat as a result of the higher level of the dollar and possible effects of slower economic growth in China and in a number of emerging market and commodity producing economies”, the minutes said. Both the rupiah and ringgit had slumped to 17-year lows against the dollar in September, hampered by falls in commodity prices and concerns that the prospect of rising in USA interest rates could lead to more capital outflows.

“Investors are rushing in to buy emerging-market assets that saw the biggest losses”, said David Sumual, Jakarta-based chief economist at PT Bank Central Asia.