Edition:
United Kingdom

Patturaja Murugaboopathy

Flows into Asian money market funds jump on trade, growth worries

21 Jun 2019

(This june 20 story corrects company name in fifth paragraph to BNP Paribas Asset Management, from BNP Paribas)

Overseas investors switch to Asian bonds from equities in May

13 Jun 2019

While overseas investors sold Asian equities in May, they bought the region's bonds, which were made more attractive by falling yields and offered some safety amid worries over the Sino-U.S. trade war, Brexit and a global economic slowdown.

Overseas investors switch to Asian bonds from equities in May

13 Jun 2019

June 13 While overseas investors sold Asian equities in May, they bought the region's bonds, which were made more attractive by falling yields and offered some safety amid worries over the Sino-U.S. trade war, Brexit and a global economic slowdown. Foreigners bought a net $4.61 billion of regional bonds after selling $3.64 billion in April, data from regional banks and bond market associations in Malaysia, Thailand, Indonesia, South Korea and India showed.

Trade war escalation triggers heavy cross-border outflows of Asian equities in May

10 Jun 2019

Asian equity markets saw heavy outflows in May as a sudden escalation in the U.S.-China trade war threatened to put more pressure on export-reliant regional economies and companies which are highly reliant on Chinese sales.

Most Asian currencies ease marginally, trade tensions nag

06 Jun 2019

Most Asian currencies were marginally easier on Thursday, as U.S. trade tensions with both China and Mexico kept investors wary of emerging markets.

EM ASIA FX-Most Asian currencies firm as lower U.S. yields, Fed rate bets check dollar

04 Jun 2019

(Adds text, updates prices) By Patturaja Murugaboopathy June 4 Most Asian currencies strengthened on Tuesday as the dollar struggled in the face of falling Treasury yields and growing expectations of a near-term interest rate cut by the Federal Reserve. The dollar slipped to a five-month low against the yen earlier, setting the tone for much of the regional currencies. The benchmark 10-year Treasury yield fell to its lowest level since September 2017 overnight, coming within reach of the 2% threshold after St. Louis Federal Reserve President James Bullard said a rate cut "may be warranted soon" given the rising risk to economic growth posed by global trade tensions as well as weak U.S. inflation. The strong "likelihood of Fed rate cuts has weighed on the dollar, while boosting EM Asian currencies," said Qi Gao, Asia FX Strategist at Scotiabank. Trade worries have taken a bit of a backseat for regional currencies this week as investors focused on falling U.S. yields and searched for better returns outside. "We expect USD-Asia to have an easing bias for now, with the weaker dollar likely to prevail," said Emmanuel Ng, an FX strategist with OCBC Bank in a note. "However, with the fundamental picture of trade tensions and economic slowdown still unchanged, we may not want to chase USD-Asia lower on a multi-session horizon." The Thai baht, which resumed trading after a market holiday on Monday, rose 1% and led regional gainers on the day. The Indian rupee tacked on 0.1 percent, helped by strong inflows into the stock and bond markets thanks to expectations of an interest rate cut by the Reserve Bank of India (RBI) on Thursday. India's exchange data showed foreigners bought $142.4 million worth of equities and $275.1 million of bonds on Monday. "The RBI is expected to deliver a 25 bp rate cut on Thursday afternoon, with the aim of stimulating India’s economic growth," said Scotiabank's Gao. Gao said a rate cut will boost Indian equities and bonds, and expectations of more market oriented reforms by Indian Prime Minister Narendra Modi’s second term meant more upside for the rupee. The Malaysian ringgit and Taiwan dollar also edged higher on the day. On the other hand, the South Korean won dropped after data showed the economy grew a revised 1.7 percent during the first quarter, slower than a 1.8 percent rise estimated earlier. China's yuan edged lower on Tuesday, but the Chinese central bank's firm fixing helped curb the fall. The following table shows rates for Asian currencies against the dollar at 0535 GMT. CURRENCIES VS U.S. DOLLAR Change on the day at 0535 GMT Currency Latest Previous Pct Move bid day Japan yen 107.880 108.06 +0.17 Sing dlr 1.368 1.3664 -0.15 Taiwan dlr 31.439 31.503 +0.20 Korean won 1181.90 1182.1 +0.02 0 Baht 31.360 31.67 +0.99 Peso 51.780 51.72 -0.12 Rupee 69.210 69.26 +0.07 Ringgit 4.175 4.18 +0.12 Yuan 6.907 6.9030 -0.06 *Indonesian markets are closed for holiday Change so far in 2019 Currency Latest End 2018 Pct Move bid Japan yen 107.880 109.56 +1.56 Sing dlr 1.368 1.3627 -0.42 Taiwan dlr 31.439 30.733 -2.25 Korean won 1181.90 1115.70 -5.60 0 Baht 31.360 32.55 +3.79 Peso 51.780 52.47 +1.33 Rupiah 14270.0 14375 +0.74 00 Rupee 69.210 69.77 +0.81 Ringgit 4.175 4.1300 -1.08 Yuan 6.907 6.8730 -0.49 (Reporting By Patturaja Murugaboopathy Editing by Shri Navaratnam)

Chinese developers' debt strains ease, but profit slowdown risks grow

28 May 2019

BENGALURU/HONG KONG China's developers, the country's most leveraged sector, have finally got their rising debt piles under control and some even boast record amounts of cash, powered by strong earnings growth and restrained expansion, a Reuters analysis showed.

Asian bonds see foreign outflows in April, trade war to hurt more

17 May 2019

Overseas investments into Asian bonds turned negative for the first time in three months in April, and analysts predicted the regional assets to come under more pressure due to an escalation in the Sino-U.S. trade dispute.

Asian bonds see foreign outflows in April, trade war to hurt more

17 May 2019

May 17 Overseas investments into Asian bonds turned negative for the first time in three months in April, and analysts predicted the regional assets to come under more pressure due to an escalation in the Sino-U.S. trade dispute.

RPT-Foreign flows into Asian equities falter this week after strong April

13 May 2019

May 10 Foreigners were net buyers of Asian equities for the fourth straight month in April, but analysts doubt such inflows could be sustained amid an escalating tariff war between the world's top two economies.

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