Trade tremors begin to surface.....>

EMERGING MARKETS: Trade tremors begin to surface

-SGD edged lower throughout the Thursday session as tensions emanating from the

Sino-US trade spat began to bubble to the surface via August industrial

production data from Singapore. M/M production plummeted 7.5%, well below

expectations of a fall of just 0.5%, dragging the Y/Y figure lower also.

-The Philippine central bank cut rates by 25bps alongside forecast, but the move

had little effect on the currency, with PHP modestly outperforming its Asia-Pac

counterparts.

-USD/ZAR's mini uptrend continued Thursday, helping USD/ZAR print the highest

levels since early September. The currency found little support despite the

country's banking association blocking a proposed strike, with labour unrest

still expected in early October. ZAR bears eye a close above 15.00 for the pair,

which may trigger further weakness.

-The Banxico rate decision takes the focus Thursday, with most analysts seeing a

25bps rate cut to 7.75% - although there remain outside bets for both a larger

cut (50bps) and for no change at all.