June 29, 2020 / 4:38 AM / 8 days ago

EMERGING MARKETS-Indonesian rupiah, Philippine stocks weakest as virus fears mount

    * Graphic: World FX rates tmsnrt.rs/2egbfVh
    * Graphic: Foreign flows into Asian stocks tmsnrt.rs/3f2vwbA
    * Philippine stocks slip 2.4%, gains in peso muted
    * Malaysian stocks fall after S&P downgrades country's
outlook

    By Rashmi Ashok
    June 29 (Reuters) - Asian equities slipped on Monday as a
surge in global coronavirus cases dented investor optimism about
the economic recovery, supported safe-haven flows into the U.S.
dollar and subdued emerging market currencies.
    Stocks in the Philippines and South Korea
fell most as markets in Asia caught up with a drop in major U.S.
indexes on Friday after several states there halted plans to
reopen economies due to a jump in cases.
    The death toll from COVID-19 reached half a million people
and confirmed cases topped 10 million on Sunday, according to a
Reuters tally.
    Malaysian stocks slipped after ratings agency S&P
Global on Friday downgraded the country's outlook to negative
from stable, citing risks to its economy and the government's
fiscal metrics due to the pandemic and the pressure on oil
prices. 
    The ringgit, the region's biggest loser so far this
year after the Indian rupee, however, traded 0.2% firmer.
    Philippine stocks shed 2.4% to hit their lowest since June
2, as the government continued to relax lockdown measures
despite an acceleration in the spread of infections.
    The country's central bank said a cut in banks' reserve
requirement ratio (RRR) was still on the table and pledged to
use its full range of monetary tools to ensure additional
liquidity, but that did little to lift sentiment.
    Last week, the Philippine central bank unexpectedly cut its
benchmark interest rate for the fourth time this year by 50
basis points to a new low.
    The bigger-than-expected rate cut had investors worried the
economy may be in for a steeper decline than what markets have
priced in, said Nicholas Mapa, ING's senior economist for the
Philippines, but added room for monetary easing was limited.
    "Investors also know that BSP is nearing the end of its
easing cycle despite declarations that BSP continues to have
ample policy space," he said.
    Elsewhere, China's yuan ticked marginally lower
while its benchmark stock index lost nearly 1% on
reopening after the Dragon Boat Festival holiday. 
    The Indonesian rupiah eased 0.2%, while the stock
index fell about 0.5%. 
    
    HIGHLIGHTS:
    ** In the Philippines, top index losers are Bloomberry
Resorts Corp down 8.18% and Alliance Global Group Inc
 down 6.1% 
    ** Top losers on FTSE Bursa Malaysia Kl Index
include CIMB Group Holdings Bhd down 1.96% and Hap
Seng Consolidated Bhd down 1.73% 
    ** Malaysia's 3-year benchmark bond yield is down 0.3 basis
points at 2.274% while its 10-year yield is down 0.2 basis
points at 3.032%​​ 
    ** Indonesian 10-year yields are up 1.40 basis points
at 7.207%​​ and 3-year yields are down 9.1 basis points
at 6.167%​​ 
    
  Asia stock indexes and                                 
 currencies at   0409 GMT                         
 COUNTRY  FX RIC        FX   FX YTD  INDE  STOCK   STOCKS
                     DAILY        %     X      S    YTD %
                         %                 DAILY  
                                               %  
 China    <CNY=CFX   -0.01    -1.63  <.SS  -0.71    -3.01
          S>                         EC>          
 India                0.00    -5.64  <.NS  -0.94   -15.48
                                     EI>          
 Indones             -0.21    -2.12  <.JK  -0.74   -22.73
 ia                                  SE>          
 Malaysi             +0.16    -4.51  <.KL  -0.69    -6.98
 a                                   SE>          
 Philipp             +0.07    +1.51  <.PS  -1.97   -22.34
 ines                                I>           
 S.Korea  <KRW=KFT   -0.02    -3.71  <.KS  -1.53    -4.36
          C>                         11>          
 Singapo             -0.06    -3.54  <.ST  -0.98   -19.97
 re                                  I>           
 Taiwan              +0.39    +1.97  <.TW  -1.28    -4.05
                                     II>          
 Thailan             +0.00    -3.24  <.SE  -0.79   -16.46
 d                                   TI>          
 


 (Reporting by Rashmi Ashok in Bengaluru; Editing by Jacqueline
Wong)
  
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