Asian Currencies Gain as Europe Deal Revitalizes Equities Demand

Thailand’s baht and Indonesia’s rupiah led gains among Asian currencies as Europe’s progress on solving its debt crisis revitalized demand for regional stocks.

Overseas investors bought more equities than they sold in Indonesia, the Philippines, Taiwan and Thailand on June 29 after European officials relaxed conditions on bailout loans for Spain and said banks can be recapitalized directly. The MSCI Asia-Pacific Index of shares added to last week’s biggest rally since January. China’s manufacturing expanded in June, while analysts had forecast a contraction, according to data issued yesterday.