Most emerging Asian currencies rose on Monday, even as China vowed to continue with its strict COVID-19 containment strategy, with Indonesia’s rupiah rebounding from the previous session’s losses and the South Korean won gaining more than 1%.

Traders in the region hoped that Friday’s US jobs report, which showed an uptick in the unemployment rate in October, could offer some leeway for the Federal Reserve to downsize its future rate hikes.

The South Korean won strengthened 1.3%, hitting its highest level in a month. The currency also led gains in the region.

The Indonesian rupiah firmed 0.3% and stocks in Jakarta recouped earlier losses to trade 0.2% higher, after country’s economy expanded at its fastest pace in more than a year, in the third quarter.

Asia FX, stocks falls on Fed rate hike woes

“We continue to expect BI (Bank Indonesia) to hike policy rates by another 50 basis points (bps) in November before slowing to a 25 bps/meeting pace starting in December, until the policy rate reaches a terminal rate of 6.25% in Q2 2023,” analysts at Goldman Sachs said.

The Thai baht added 0.2% to its highest since Oct. 6 as the country’s inflation rose 5.98% in October and marginally missed analysts’ estimates. A senior commerce official also forecast inflation to slow in the remainder of the year.

“Inflation eased further in October as energy costs continued to slow while food prices finally showed signs of peaking despite concerns on the impact of floods, Maybank analysts said.

“We expect the Bank of Thailand to maintain its gradual policy tightening, and hike by 25 basis points in the upcoming meeting on Nov. 30,” they added.

The Malaysian ringgit inched 0.1% higher, but still hovered over its 1998 lows. The Philippine peso and Singapore dollar underperformed their peers, sliding 0.3% each.

Meanwhile, the Chinese yuan softened 0.4% after gaining over a percent in the previous session, while its stocks edged 0.2% lower. Beijing denied it was considering easing its zero COVID policy, further pushing the US dollar up.

The world’s second-largest economy also reported its highest number of new COVID-19 infections in six months on Sunday and its October exports and imports missed expectations.

Stocks in Manila, led gains among Asian equities, jumping 1.1%, with South Korean shares in close second, rising 1%.

Highlights:

** China’s COVID resurgence spurs new curbs, Foxconn imposes restrictions

** Palm jumps 1% on strong demand, China pandemic curbs weigh

** Once again, Malaysia’s Anwar bids to become prime minister