Peso rises as Asian economies report improved manufacturing data

MANILA, Philippines—The peso strengthened on Wednesday as favorable manufacturing data in some neighboring countries boosted expectations that Asian economies would post decent growth rates in 2012 even as the prolonged debt crisis in the eurozone has partly dampened their growth prospects.

The local currency closed at 42.75 against the US dollar, up by 8 centavos from the previous day’s finish of 42.83:$1.

Intraday high hit 42.67:$1, while intraday low settled at 42.775:$1. Volume of trade amounted to $856.8 million from $941.4 million previously.

Traders said the appreciation of the peso and other major Asia currencies on Wednesday came following reports that Japan and Korea registered higher factory output in January from that in the previous month. Output in Japan rose by 2 percent, while that in South Korea rose by 3.3 percent.

Market players said the favorable indicators supported views that Asia would continue to drive global economic growth this year and would not significantly be harmed by the lingering debt woes in the eurozone.