Home Markets EMERGING MARKETS-Asian stocks upbeat but investors cautious of looming rate hikes

EMERGING MARKETS-Asian stocks upbeat but investors cautious of looming rate hikes

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* Bank of Thailand meets today * Reserve Bank of India raises key repo rate by 50 basis points * Oil rally continues By Tejaswi Marthi June 8 (Reuters) – Asian stocks rose on Wednesday, tracking a rally on the Wall Street, but gains were capped by investors’ fears that aggressive central bank rate hikes could lead to stagflation. Equities in Taiwan led gains among Asian markets to advance 1%, followed by a 0.5% rise in Thailand stocks. Malaysia’s also traded 0.2% higher. Thailand’s central bank will meet later in the day and analysts largely expect it will hold the 1-day repo rate at 0.50% to support economic recovery. Thailand’s May headline inflation hit its highest level in nearly 14 years and prices are expected to continue rising, eclipsing the central bank’s 1%-3% target While the Bank of Thailand (BOT) will be hard pressed to ignore this reading, it may still look to fiscal policy efforts to rein in inflation, as it faces considerable pressure…

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