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Patturaja Murugaboopathy

Asian equities receive biggest foreign inflows in a year in January

06 Feb 2019

Foreigners were net buyers of Asian shares in January, data from seven exchanges showed, on hopes the U.S. Federal Reserve would go slow with its monetary tightening measures this year and the trade talks would unwind some tariffs, bolstering world trade.

Asian equities receive biggest foreign inflows in a year in Jan

06 Feb 2019

Feb 6 Foreigners were net buyers of Asian shares in January, data from seven exchanges showed, on hopes the U.S. Federal Reserve would go slow with its monetary tightening measures this year and the trade talks would unwind some tariffs, bolstering world trade.

Foreigners pull most cash from Asian equities in at least 7 years in 2018

04 Jan 2019

Foreign outflows from Asian equities were the biggest in at least 7 years in 2018 as the Sino-U.S. trade war and slowing profits battered regional stocks last year.

Foreigners bought Asian bonds in November as trade tensions fade

12 Dec 2018

Foreigners were net buyers of Asian bonds in November as concerns over Sino-U.S. trade war and higher U.S. yields abated, bolstering capital inflows into the region.

Foreigners bought Asian bonds in November as trade tensions fade

12 Dec 2018

Dec 12 Foreigners were net buyers of Asian bonds in November as concerns over Sino-U.S. trade war and higher U.S. yields abated, bolstering capital inflows into the region.

Foreigners turned net buyers of Asian shares in November

10 Dec 2018

Foreigners were net buyers of Asian equities in November, data from seven regional stock exchanges showed, as investors were optimistic that Sino-U.S. trade tensions would ease and the U.S. Federal Reserve would hike interest rates fewer times next year.

Foreigners turned net buyers of Asian shares in November

10 Dec 2018

Dec 10 Foreigners were net buyers of Asian equities in November, data from seven regional stock exchanges showed, as investors were optimistic that Sino-U.S. trade tensions would ease and the U.S. Federal Reserve would hike interest rates fewer times next year.

EM ASIA FX-Most Asian currencies rise as dollar weakens ahead of jobs data

07 Dec 2018

(Adds text, updates prices) By Patturaja Murugaboopathy Dec 7 Asian currencies clawed back some of their losses against the dollar on Friday after three straight days of decline, as lower bond yields and speculation that the pace of U.S. monetary tightening will slow next year softened the greenback. The Indian rupee and the Indonesian rupiah led the regional gains, adding about half a percent against the dollar on Friday. Both currencies were also supported by a decline in crude prices as India and Indonesia are major oil importing countries. The Federal Reserve is this month expected to raise interest rates for the fourth time in 2018, but investors have rapidly pared back their expectations for additional rate hikes next year. Investors now await November U.S. employment data due later on Friday for clues to how the world's top economy is faring. However, despite the dollar's softness, analysts are still cautious on Asian currencies in the short-term. "In this midst of a more dovish Fed, AXJ currencies should have more room for respite against the dollar," said Leong Sook Mei, ASEAN head of global markets research at MUFG Bank. "But these gains are likely superficial at best in the short term given greater U.S. equity market volatility, U.S. Treasury yield curve inversion concerns, and higher oil prices." The dollar index, which measures the greenback against a basket of six major peers, was little changed at 96.802. The index shed 0.3 percent during the previous session, closing at a one-week low and was down 0.9 percent from a 17-month peak hit on Nov. 12. The South Korean won rose 0.3 percent after falling over 1 percent over the past two days, while the Thai baht also gained 0.2 percent on the day. China's yuan firmed as market sentiment recovered from fears that the arrest of senior Huawei executive could spark a re-escalation in the U.S.-China trade war. A recent Reuters poll showed China's yuan will breach the 7 per dollar level within the next six months, and also predicted authorities would continue to exert control over the currency in 2019. INDONESIAN RUPIAH The Indonesian rupiah rose 0.4 percent against the dollar on Friday, helped by a surge in local stock markets. The rupiah has lost over 1 percent this week and was set for its biggest weekly decline in over two months. Foreigners have sold about $76 million worth of Indonesian equities over the last two days, exchange data showed. On Thursday, Indonesia's central bank intervened in the domestic non-deliverable forward (NDF) market to support the rupiah. "(Intervention in NDF markets) will help delay, but not eliminate the demand for dollars,” said Frances Cheung, head of macro strategy at Westpac The following table shows rates for Asian currencies against the dollar at 0555 GMT. CURRENCIES VS U.S. DOLLAR Change as of 0555 GMT Currency Latest Previous Pct bid day Move Japan yen 112.900 112.66 -0.21 Sing dlr 1.369 1.3692 +0.01 Taiwan dlr 30.829 30.857 +0.09 Korean won 1117.90 1120.3 +0.21 0 Baht 32.810 32.83 +0.06 Peso 52.679 52.76 +0.15 Rupiah 14465.0 14515 +0.35 00 Rupee 70.588 70.90 +0.44 Ringgit 4.160 4.162 +0.05 Yuan 6.877 6.8820 +0.08 Change so far in 2018 Currency Latest End 2017 Pct bid Move Japan yen 112.900 112.67 -0.20 Sing dlr 1.369 1.3373 -2.32 Taiwan dlr 30.829 29.848 -3.18 Korean won 1117.90 1070.50 -4.24 0 Baht 32.810 32.58 -0.70 Peso 52.679 49.93 -5.22 Rupiah 14465.0 13565 -6.22 00 Rupee 70.588 63.87 -9.52 Ringgit 4.160 4.0440 -2.79 Yuan 6.877 6.5069 -5.37 (Reporting by Patturaja Murugaboopathy in Bengaluru; Additional Reporting by Vatsal Srivastava in Singapore; Editing by Sam Holmes)

EM ASIA FX-Most Asian currencies drop on lower U.S. yields, growth worries

06 Dec 2018

(Adds text, updates prices) By Patturaja Murugaboopathy Dec 6 Most Asian currencies were hit on Thursday as the U.S. bond market signalled trouble ahead for the world's biggest economy, while the arrest of a top executive of a Chinese tech firm in Canada for extradition to the United States shook risk markets. An inversion of the U.S. yield curve, with the two-year yields moving above the five-year rates, has prompted recession worries and rattled global riskier assets. There has also been a flattening of the curve further out, as spreads between two- and 10-year U.S. Treasury yields tightened towards their narrowest in more than a decade on Thursday. While few expect the U.S. economy to slow sharply anytime soon, an inverted yield curve has stoked fears of a recession down the road. Historically, the economy has taken anywhere between 12 months and 24 months to fall into a recession when the yield curve inverts. Leong Sook Mei, ASEAN head of global markets research at MUFG Bank, said the moves in U.S. bond yields will affect global equities and impact Asian currencies as well. She noted that Asia is vulnerable to any U.S. slowdown as many of the economies rely heavily on the United States for trade. "Asian currencies will definitely be affected, if the U.S. yield curve is inverted. It will come on top of the trade war concerns," said Mei. Moreover, the arrest of a top executive of Chinese tech giant Huawei Technologies fanned fears of a fresh flare-up in tensions between China and the United States. The arrest comes at a particularly tricky time after U.S. President Donald Trump and his Chinese counterpart Xi Jinping reached a temporary truce in their trade war in a weekend meeting in Argentina. "Trump's threat that he is a "tariff man" should China refuse to comply with US trade demands, alongside the arrest of a high level Huawei executive, raises fear that the positivity from the Trump-Xi summit may unwind," said Wei Liang Chang, an FX strategist at Mizuho Bank. The Indonesian rupiah led the regional declines, shedding more than 1 percent, while the Indian rupee fell 0.7 percent. India's central bank kept interest rates unchanged on Wednesday, as expected, on easing inflation worries and in efforts to persuade banks to lend more to support an economy that has lost some momentum. The South Korean won, Thai baht, Malaysian ringgit and China's yuan, all shed more than a quarter percent each on Thursday. INDONESIAN RUPIAH The Indonesian rupiah dropped more than 1 percent against the dollar, hurt by a slump in its bond and equity markets. Indonesia's central bank intervened in the domestic non-deliverable forward (NDF) market on the day, to support the rupiah, Bank Indonesia's (BI) head of monetary management Nanang Hendarsah said. Last week, its central bank said it viewed the rupiah as still undervalued. The rupiah has fallen 6.7 percent this year, and is the second worst performer in the region after the Indian rupee. The following table shows rates for Asian currencies against the dollar at 0610 GMT. CURRENCIES VS U.S. DOLLAR Change as of 0610 GMT Currency Latest Previous Pct bid day Move Japan yen 112.790 113.19 +0.35 Sing dlr 1.370 1.3668 -0.26 Taiwan dlr 30.848 30.806 -0.14 Korean won 1118.60 1114.1 -0.40 0 Baht 32.820 32.7 -0.37 Peso 52.690 52.74 +0.09 Rupiah 14548.0 14390 -1.09 00 Rupee 71.010 70.46 -0.77 Ringgit 4.165 4.1525 -0.30 Yuan 6.877 6.8580 -0.27 Change so far in 2018 Currency Latest End 2017 Pct bid Move Japan yen 112.790 112.67 -0.11 Sing dlr 1.370 1.3373 -2.42 Taiwan dlr 30.848 29.848 -3.24 Korean won 1118.60 1070.50 -4.30 0 Baht 32.820 32.58 -0.73 Peso 52.690 49.93 -5.24 Rupiah 14548.0 13565 -6.76 00 Rupee 71.010 63.87 -10.0 5 Ringgit 4.165 4.0440 -2.91 Yuan 6.877 6.5069 -5.38 (Reporting by Patturaja Murugaboopathy in Bengaluru Editing by Shri Navaratnam)

EM ASIA FX-Asian currencies drop on trade worries, falling U.S. yields

05 Dec 2018

(Adds text, updates prices) By Patturaja Murugaboopathy Dec 5 Asian currencies weakened on Wednesday, with optimism over a U.S.-China trade truce fading amid rising concerns an inversion of the U.S. Treasury yield curve points to potential recession. Regional currencies were bolstered earlier this week as leaders of world's two largest economies agreed to a 90-day truce to their trade war, however, a lack of specific details has raised questions over the durability of the deal. "Optimism surrounding the temporary trade ceasefire fades as doubts about durability of the truce grow when Trump's economic adviser backtracked from an earlier announcement that China had agreed to lower tariffs on U.S.-made cars," said Zhu Huani, economist at Mizuho Bank. "Whilst Trump suggested that he might extend the 90-day truce or impose tariffs if no deal is reached, this reinforces concern that both sides are just kicking the can down the road." Trump threatened on Tuesday to place "major tariffs" on Chinese goods imported into the United States if his administration is unable to reach an effective trade deal with Beijing. Also, investors remained nervous over an inversion of the yield curve between three-year and five-year U.S. Treasury notes and between two-year and five-year notes. The yield spread between the U.S. 2-year and 10-year tightened to its smallest since July 2007 this week. A flatter yield curve is seen as an indicator of a recession. Analysts said a slowing U.S. economy would affect Asian markets as a whole, as many countries in the region are reliant on their exports to the United States. The Indonesian rupiah declined about 1 percent, hit by higher crude oil prices, while the South Korean won also fell 0.9 percent. The Philippine peso shed nearly half a percent after annual inflation eased in November for the first time in almost a year, reducing pressure on the central bank to raise rates. China's yuan also slumped after gaining nearly 2 percent in the first two days of this week, while the Singapore dollar and the Taiwan dollar dropped about a quarter of a percent each. INDIAN RUPEE The Indian rupee fell 0.23 percent against the dollar, ahead of its central bank policy meeting later on Wednesday. Analysts expect the Reserve Bank of India to leave interest rates unchanged to support the economy that is losing momentum. Economic growth slowed sharply in the July-September quarter, when annual growth slipped to 7.1 percent from a more than two-year high of 8.2 percent in the previous quarter, data showed last week. "In the coming quarters, government consumption is expected to remain strong ahead of the general elections next year, but other components of growth may continue to drag down overall growth," MUFG Bank said in a note. The following table shows rates for Asian currencies against the dollar at 0529 GMT. CURRENCIES VS U.S. DOLLAR Change as of 0529 GMT Currency Latest Previous Pct bid day Move Japan yen 113.020 112.77 -0.22 Sing dlr 1.368 1.3650 -0.19 Taiwan dlr 30.797 30.705 -0.30 Korean won 1115.00 1105.3 -0.87 0 Peso 52.780 52.52 -0.49 Rupiah 14425.0 14285 -0.97 00 Rupee 70.590 70.49 -0.14 Ringgit 4.156 4.145 -0.26 Yuan 6.862 6.8375 -0.36 *Thai markets closed for holiday Change so far in 2018 Currency Latest End 2017 Pct bid Move Japan yen 113.020 112.67 -0.31 Sing dlr 1.368 1.3373 -2.22 Taiwan dlr 30.797 29.848 -3.08 Korean won 1115.00 1070.50 -3.99 0 Baht 32.700 32.58 -0.37 Peso 52.780 49.93 -5.40 Rupiah 14425.0 13565 -5.96 00 Rupee 70.590 63.87 -9.52 Ringgit 4.156 4.0440 -2.69 Yuan 6.862 6.5069 -5.18 (Reporting by Patturaja Murugaboopathy in Bengaluru Editing by Jacqueline Wong)

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