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Rashmi Ashok

EMERGING MARKETS-Yuan anchors Asian FX as caution spikes ahead of U.S. election

30 Oct 2020

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I * Yuan rises nearly 0.5% on China's new 5-year plan * South Korean won top gainer for October, up 3% * Philippine stocks end with near 8% monthly gain * Malaysia cenbank meet, 2021 budget in focus next week * Indian and Indonesian forex markets shut due to local holidays By Rashmi Ashok Oct 30 Strong gains in the Chinese yuan supported most Asian currencies on Friday, shielding them from a broader gloomy mood weighing on regional equities ahead of the U.S. presidential election. Worries about the outcome of Tuesday's election have remained at the fore, given the stark difference between Democratic candidate Joe Biden and President Donald Trump's views on foreign policy and trade, particularly towards Asia. The yuan jumped 0.5% against the dollar after China's leaders endorsed a new five-year plan to drive sustained economic growth, which markets believe will require a stronger currency. That helped boost the closely tied Singapore dollar by 0.2%, while the Thai baht rose by a similar margin. While cases are surging elsewhere, the COVID-19 situation in Asia remains largely under control, with China's swift economic recovery driving the resilience of the yuan and other Asian currencies, said Sim Moh Siong, FX strategist at Bank of Singapore. "The second factor is the U.S. elections. If Biden wins, and polls are indicating he's in the lead, it could lead to a less aggressive trade policy, further anchoring the yuan," he added. "For Asia, overall, the risk environment is going to be cautious, but there's no panic." The region's equities were subdued after Wall Street's sell-off as cases continued to surge in the United States, while fears of more lockdowns across Europe, following France and Germany's moves this week, also dented the mood. For October, most Asian currencies were set to end higher, with the South Korean won logging its best monthly performance since June 2019, with a 3% gain. Most stock markets, however, were set to end the month with losses. The Thai index was on track for a 3.4% drop sparked by political ructions and protests. Philippines' equities, in contrast, breezed past peers with an 8% gain, as a the gradual reopening of the economy and upbeat COVID-19 case trends spurred investor confidence. In the week ahead, the focus will turn to Malaysia's central bank policy meeting on Tuesday, followed by the government's 2021 budget presentation on Friday. The latter is seen as a key test to gauge support the prime minister wields amid recent political tensions, with fears prevalent that the budget bill might not get through parliament given the slim coalition majority his government holds. The Indian currency market was shut on Friday for a local holiday, while in Indonesia, both equities and forex markets were closed. HIGHLIGHTS ** In the Philippines, top index gainers were Aboitiz Equity Ventures Inc, up 5.82%, and JG Summit Holdings Inc , up 3.71%. ** Top losers on the Singapore index include UOL Group Ltd, down 3.72%, and Ascendas Real Estate Investment Trust, down 3.33%. ** Singapore's 10-year benchmark yield is down 0.2 basis point at 0.831%​​ and the 5-year benchmark yield is up 0.2 basis point at 0.498%​​ Asia stock indexes and currencies at 0650 GMT COUNTRY FX RIC FX FX INDEX STOCK STOCK DAILY YTD % S S YTD % DAILY % % Japan +0.29 +4.12 -1.52 -2.87 China <CNY=CFX +0.33 +4.02 -1.61 5.57 S> Malaysi -0.10 -1.66 -1.23 -7.05 a Philipp -0.04 +4.66 1.19 -19.0 ines 8 S.Korea <KRW=KFT -0.33 +1.88 -2.56 3.16 C> Singapo +0.10 -1.55 -1.00 -24.7 re 2 Taiwan +1.05 +5.21 -0.92 4.58 Thailan +0.16 -4.10 -0.57 -24.3 d 7 (Reporting by Rashmi Ashok in Bengaluru; editing by Uttaresh.V)

EMERGING MARKETS-Yuan anchors Asian FX as caution spikes ahead of U.S. election

30 Oct 2020

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I * Yuan rises nearly 0.5% on China's new 5-year plan * South Korean won top gainer for October, up 3% * Philippine stocks end with near 8% monthly gain * Malaysia cenbank meet, 2021 budget in focus next week * Indian and Indonesian forex markets shut due to local holidays By Rashmi Ashok Oct 30 Strong gains in the Chinese yuan supported most Asian currencies on Friday, shielding them from a broader gloomy mood weighing on regional equities ahead of the U.S. presidential election. Worries about the outcome of Tuesday's election have remained at the fore, given the stark difference between Democratic candidate Joe Biden and President Donald Trump's views on foreign policy and trade, particularly towards Asia. The yuan jumped 0.5% against the dollar after China's leaders endorsed a new five-year plan to drive sustained economic growth, which markets believe will require a stronger currency. That helped boost the closely tied Singapore dollar by 0.2%, while the Thai baht rose by a similar margin. While cases are surging elsewhere, the COVID-19 situation in Asia remains largely under control, with China's swift economic recovery driving the resilience of the yuan and other Asian currencies, said Sim Moh Siong, FX strategist at Bank of Singapore. "The second factor is the U.S. elections. If Biden wins, and polls are indicating he's in the lead, it could lead to a less aggressive trade policy, further anchoring the yuan," he added. "For Asia, overall, the risk environment is going to be cautious, but there's no panic." The region's equities were subdued after Wall Street's sell-off as cases continued to surge in the United States, while fears of more lockdowns across Europe, following France and Germany's moves this week, also dented the mood. For October, most Asian currencies were set to end higher, with the South Korean won logging its best monthly performance since June 2019, with a 3% gain. Most stock markets, however, were set to end the month with losses. The Thai index was on track for a 3.4% drop sparked by political ructions and protests. Philippines' equities, in contrast, breezed past peers with an 8% gain, as a the gradual reopening of the economy and upbeat COVID-19 case trends spurred investor confidence. In the week ahead, the focus will turn to Malaysia's central bank policy meeting on Tuesday, followed by the government's 2021 budget presentation on Friday. The latter is seen as a key test to gauge support the prime minister wields amid recent political tensions, with fears prevalent that the budget bill might not get through parliament given the slim coalition majority his government holds. The Indian currency market was shut on Friday for a local holiday, while in Indonesia, both equities and forex markets were closed. HIGHLIGHTS ** In the Philippines, top index gainers were Aboitiz Equity Ventures Inc, up 5.82%, and JG Summit Holdings Inc , up 3.71%. ** Top losers on the Singapore index include UOL Group Ltd, down 3.72%, and Ascendas Real Estate Investment Trust, down 3.33%. ** Singapore's 10-year benchmark yield is down 0.2 basis point at 0.831%​​ and the 5-year benchmark yield is up 0.2 basis point at 0.498%​​ Asia stock indexes and currencies at 0650 GMT COUNTRY FX RIC FX FX INDEX STOCK STOCK DAILY YTD % S S YTD % DAILY % % Japan +0.29 +4.12 -1.52 -2.87 China <CNY=CFX +0.33 +4.02 -1.61 5.57 S> Malaysi -0.10 -1.66 -1.23 -7.05 a Philipp -0.04 +4.66 1.19 -19.0 ines 8 S.Korea <KRW=KFT -0.33 +1.88 -2.56 3.16 C> Singapo +0.10 -1.55 -1.00 -24.7 re 2 Taiwan +1.05 +5.21 -0.92 4.58 Thailan +0.16 -4.10 -0.57 -24.3 d 7 (Reporting by Rashmi Ashok in Bengaluru; editing by Uttaresh.V)

EMERGING MARKETS-Cautious Asian FX anchored by strong yuan ahead of U.S. election

30 Oct 2020

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I * China's recovery shielding Asian FX from virus woes -analyst * Yuan's 0.5% gain keeps most Asian FX afloat * Focus on Malaysia cenbank meet, 2021 budget next week * Indonesia, India shut on local holidays By Rashmi Ashok Oct 30 Strong gains in the Chinese yuan supported most Asian currencies on Friday, helping them escape a broader risk-off mood that sent regional equities lower as uncertainty ramped up ahead of the U.S. presidential election. Worries over the outcome of Tuesday's election has remained to the fore, given the stark difference between Democratic candidate Joe Biden and President Donald Trump's views on foreign policy and trade, particularly towards Asia. The Chinese yuan jumped 0.5% against the dollar, which helped boost the closely tied Singapore dollar by 0.2% and the South Korean won 0.4%. While cases are surging elsewhere, the COVID-19 situation in Asia remains largely under control, with China's swift economic recovery driving the resilience of the yuan and other Asian currencies, said Sim Moh Siong, FX strategist at Bank of Singapore. "The second factor is the U.S. elections. If Biden wins, and polls are indicating he's in the lead, it could lead to a less aggressive trade policy, further anchoring the yuan," he added. "For Asia, overall, the risk environment is going to be cautious, but there's no panic." Reuters earlier reported Biden would immediately consult with America's main allies before deciding on the future of U.S. tariffs on China, which markets received positively. Export-sensitive currencies in Asia, primarily the yuan, the won and the Taiwan dollar are set to clock firm gains in October, up nearly 1% to 3.6% so far for the month. Despite being shunned in recent weeks due to political ructions and massive protests, the Thai baht is also on track for a 1.6% monthly gain. Stock markets were subdued after Wall Street's sell-off, as cases continued to surge in the United States. Expectations of further lockdowns across Europe, following France and Germany's moves earlier this week, also dented the mood. Philippine stocks bucked the regional trend to add nearly 1%, after a sharp 2% decline the previous session. In the week ahead, Malaysia's central bank will meet on Tuesday to decide on monetary policy, followed by the government's 2021 budget presentation on Friday. The latter is seen as a key test to gauge the support the prime minister holds in wake of recent political tensions, with fears prevalent that the budget bill might not get through parliament given the slim coalition majority his government holds. Markets in Indonesia and India remained shut for local holidays. HIGHLIGHTS ** In the Philippines, top index gainers are Aboitiz Equity Ventures Inc up 5.7% and JG Summit Holdings Inc up 3.07% ** Top losers on FTSE Bursa Malaysia Kl Index include Axiata Group Bhd down 2.96% and Hong Leong Financial Group Bhd down 2.31% ** Malaysia's 10-year benchmark yield was down 0.2 basis points at 2.63%​​ while the 3-year benchmark yield was up 0.5 basis points at 1.76%​​ Asia stock indexes and currencies at 0454 GMT COUNTRY FX RIC FX FX INDEX STOCK STOCK DAILY YTD % S S YTD % DAILY % % Japan +0.26 +4.09 -0.75 -2.11 China <CNY=CFX +0.48 +4.18 -0.10 7.19 S> Malaysi +0.00 -1.56 -0.82 -6.66 a Philipp -0.01 +4.68 1.08 -19.1 ines 7 S.Korea <KRW=KFT +0.34 +2.55 -1.21 4.59 C> Singapo +0.18 -1.47 -0.23 -24.1 re 4 Taiwan +0.04 +4.17 -0.33 5.20 Thailan +0.13 -4.13 -0.19 -24.0 d 8 (Reporting by Rashmi Ashok in Bengaluru; Editing by Lincoln Feast.)

EMERGING MARKETS-Asian shares prune losses after China stocks rebound, yuan lifts FX

29 Oct 2020

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I * Yuan jumps 0.4%, Chinese shares shed losses to stand 0.5% higher * Singapore dollar adds 0.2%, South Korean won sheds losses * Philippine shares see exaggerated drop after last week's rally * Indonesian and Malaysian markets shut due to local holidays By Rashmi Ashok Oct 29 Asian equities were shielded from deeper losses on Thursday after Chinese stocks and the yuan rebounded by midday, acting as a buffer to an overnight sell-off on Wall Street due to a surge in COVID-19 cases in Europe and the United States. France and Germany went into lockdowns, prompting worries that more European nations may be forced to follow suit which could threaten the nascent economic recovery. A surge in U.S. infections also sapped risk sentiment. Philippine stocks fell the most, posting a 2% drop in their worst session since Aug. 3, as investors liberally sold off shares after last week's 10% rally. Other markets, however, recovered from deeper losses after China's benchmark stock index reversed course to add 0.5% by midday as leading companies posted robust third-quarter earnings. Reuters' report that Joe Biden will "consult allies" on future China tariffs if elected also seems to be supporting Asian markets and has put a floor under the negative sentiment for now, Jeffrey Halley, senior market analyst at OANDA wrote. In tandem with the Chinese yuan's 0.4% jump, the closely-tied Singapore dollar added 0.2% and the South Korean won rebounded from losses of as much as 0.5% to hold steady by midday. Analysts say Asian assets have largely been shielded from the sell-off elsewhere as the region's economic engine, China, has shown strong signs of a recovery through recent data while coronavirus cases have remained under control. The Taiwan dollar jumped 1% and the Philippine peso traded slightly higher. The Thai baht also pulled back from losses to stand flat. Worries about the outcome of the U.S. election next week remained a big pressure point, given the stark difference between Democratic presidential candidate Joe Biden's trade policies towards Asia from those of President Donald Trump. "A Biden win would likely bode well for Asia, given a less aggressive trade stance/potential for stronger fiscal stimulus. Trade orientated FX such as the yuan, won, Singapore dollar and Taiwan dollar will likely be the main beneficiaries," analysts at TD Securities wrote earlier this week. They also noted that a weaker U.S. dollar would also be likely if Biden won, while a Trump win could spur a stronger dollar and further hinder appreciation in Asian currencies. Markets in Indonesia and Malaysia were shut on account of local holidays. HIGHLIGHTS ** Top losers on the Singapore STI include Mapletree Commercial Trust, down 3.24%, and Capitaland Mall Trust, down 2.2%. ** Top losers on Thailand's SETI include TWZ Corporation PCL, down 16.67%, and Bangkok Post PCL , down 15.44%. ** Singapore's 10-year benchmark yield was down 0.9 basis point at 0.822%,​​ while the 5-year benchmark yield was up 2.6 basis points at 0.49%​​ Asia stock indexes and currencies at 0706 GMT COUNTRY FX RIC FX FX INDEX STOCK STOCK DAILY YTD % S S YTD % DAILY % % Japan -0.05 +4.09 -0.37 -1.37 China <CNY=CFX +0.31 +3.81 0.36 7.57 S> India -0.23 -3.60 0.02 -3.59 Philipp +0.16 +4.72 -2.01 -20.0 ines 4 S.Korea <KRW=KFT -0.07 +2.21 -0.79 5.87 C> Singapo +0.14 -1.37 -0.76 -23.5 re 3 Taiwan +1.03 +5.23 -1.02 5.55 Thailan -0.06 -4.17 -0.26 -23.7 d 4 (Reporting by Rashmi Ashok in Bengaluru; editing by Uttaresh.V)

EMERGING MARKETS-Asian shares prune losses after China stocks rebound, yuan lifts FX

29 Oct 2020

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I * Yuan jumps 0.4%, Chinese shares shed losses to stand 0.5% higher * Singapore dollar adds 0.2%, South Korean won sheds losses * Philippine shares see exaggerated drop after last week's rally * Indonesian and Malaysian markets shut due to local holidays By Rashmi Ashok Oct 29 Asian equities were shielded from deeper losses on Thursday after Chinese stocks and the yuan rebounded by midday, acting as a buffer to an overnight sell-off on Wall Street due to a surge in COVID-19 cases in Europe and the United States. France and Germany went into lockdowns, prompting worries that more European nations may be forced to follow suit which could threaten the nascent economic recovery. A surge in U.S. infections also sapped risk sentiment. Philippine stocks fell the most, posting a 2% drop in their worst session since Aug. 3, as investors liberally sold off shares after last week's 10% rally. Other markets, however, recovered from deeper losses after China's benchmark stock index reversed course to add 0.5% by midday as leading companies posted robust third-quarter earnings. Reuters' report that Joe Biden will "consult allies" on future China tariffs if elected also seems to be supporting Asian markets and has put a floor under the negative sentiment for now, Jeffrey Halley, senior market analyst at OANDA wrote. In tandem with the Chinese yuan's 0.4% jump, the closely-tied Singapore dollar added 0.2% and the South Korean won rebounded from losses of as much as 0.5% to hold steady by midday. Analysts say Asian assets have largely been shielded from the sell-off elsewhere as the region's economic engine, China, has shown strong signs of a recovery through recent data while coronavirus cases have remained under control. The Taiwan dollar jumped 1% and the Philippine peso traded slightly higher. The Thai baht also pulled back from losses to stand flat. Worries about the outcome of the U.S. election next week remained a big pressure point, given the stark difference between Democratic presidential candidate Joe Biden's trade policies towards Asia from those of President Donald Trump. "A Biden win would likely bode well for Asia, given a less aggressive trade stance/potential for stronger fiscal stimulus. Trade orientated FX such as the yuan, won, Singapore dollar and Taiwan dollar will likely be the main beneficiaries," analysts at TD Securities wrote earlier this week. They also noted that a weaker U.S. dollar would also be likely if Biden won, while a Trump win could spur a stronger dollar and further hinder appreciation in Asian currencies. Markets in Indonesia and Malaysia were shut on account of local holidays. HIGHLIGHTS ** Top losers on the Singapore STI include Mapletree Commercial Trust, down 3.24%, and Capitaland Mall Trust, down 2.2%. ** Top losers on Thailand's SETI include TWZ Corporation PCL, down 16.67%, and Bangkok Post PCL , down 15.44%. ** Singapore's 10-year benchmark yield was down 0.9 basis point at 0.822%,​​ while the 5-year benchmark yield was up 2.6 basis points at 0.49%​​ Asia stock indexes and currencies at 0706 GMT COUNTRY FX RIC FX FX INDEX STOCK STOCK DAILY YTD % S S YTD % DAILY % % Japan -0.05 +4.09 -0.37 -1.37 China <CNY=CFX +0.31 +3.81 0.36 7.57 S> India -0.23 -3.60 0.02 -3.59 Philipp +0.16 +4.72 -2.01 -20.0 ines 4 S.Korea <KRW=KFT -0.07 +2.21 -0.79 5.87 C> Singapo +0.14 -1.37 -0.76 -23.5 re 3 Taiwan +1.03 +5.23 -1.02 5.55 Thailan -0.06 -4.17 -0.26 -23.7 d 4 (Reporting by Rashmi Ashok in Bengaluru; editing by Uttaresh.V)

EMERGING MARKETS-Asian stocks slide on coronavirus surge, yuan rise supports FX

29 Oct 2020

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I * Philippine stocks slide nearly 2%, lead losses * Yuan's 0.3% bounce keeps Asian FX afloat * Indonesian and Malaysian markets shut on local holidays By Rashmi Ashok Oct 29 Asian equities slid on Thursday after surging coronavirus cases in the United States and Europe sparked a sell-off on Wall Street overnight, while a rebound in the Chinese yuan helped shield regional currencies from the risk-off mood. France and Germany went into lockdowns, which prompted worries that more European nations may be forced to follow suit in a move that could threaten a nascent economic recovery. Philippine's benchmark stock index slid most in the region, down 2% and was on track for its biggest drop since Aug. 19, after last week's rise of nearly 10%. The Chinese yuan rose 0.3 %, recovering losses made in the previous session. It fell on Wednesday after some banks tweaked a methodology for fixing the yuan's daily midpoint, which was seen by some as a sign that Beijing is willing to allow some weakness in its currency. The yuan's strength helped put a floor under most Asian currencies despite an appreciating U.S. dollar. The Singapore dollar, closely tied to the Chinese currency's moves due to close trade ties, rose 0.2% higher. "This has helped cap losses in other Asia-ex Japan FX as well," analysts at Maybank wrote in a note, referring to the yuan's strength. The Taiwan dollar jumped 1% while the Philippine peso also traded a touch firmer. The South Korean won also pulled back from deeper losses to stand only marginally weaker. Worries about the outcome of the U.S. election next week also overshadowed trade, given the stark difference between Democratic presidential candidate Joe Biden's trade policies towards Asia from those of President Donald Trump. "A Biden win would likely bode well for Asia, given a less aggressive trade stance/potential for stronger fiscal stimulus. Trade orientated FX such as the yuan, won, Singapore dollar and Taiwan dollar will likely be the main beneficiaries," analysts at TD Securities wrote earlier this week. They also noted that a weaker U.S. dollar would also be likely if Biden won, while a Trump win could spur a stronger dollar and further hinder appreciation in Asian currencies. Markets in Indonesia and Malaysia were shut on account of local holidays. HIGHLIGHTS ** In the Philippines, top index losers are LT Group Inc down 4.64% and Ayala Land Inc down 4.43% ** Top losers on the Singapore STI include Mapletree Commercial Trust down 3.24% and Capitaland Mall Trust down 2.2% ** Singapore's 10-year benchmark yield was up 0.1 basis points at 0.833%​​ and the 5-year benchmark yield was up 3.2 basis points at 0.496%​​ Asia stock indexes and currencies at 0449 GMT COUNTRY FX RIC FX FX INDEX STOCK STOCK DAILY YTD % S S YTD % DAILY % % Japan -0.12 +4.01 -0.36 -1.36 China <CNY=CFX +0.28 +3.77 0.08 7.26 S> India -0.20 -3.57 -0.30 -3.90 Philipp +0.08 +4.65 -1.73 -19.8 ines 0 S.Korea <KRW=KFT -0.17 +2.11 -1.35 5.27 C> Singapo +0.17 -1.34 -0.80 -23.5 re 6 Taiwan +1.06 +5.25 -1.02 5.55 Thailan -0.13 -4.23 -0.43 -23.8 d 7 (Reporting by Rashmi Ashok in Bengaluru; Editing by Ana Nicolaci da Costa)

EMERGING MARKETS-Asian stocks slide on coronavirus surge, yuan rise supports FX

29 Oct 2020

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I * Philippine stocks slide nearly 2%, lead losses * Yuan's 0.3% bounce keeps Asian FX afloat * Indonesian and Malaysian markets shut on local holidays By Rashmi Ashok Oct 29 Asian equities slid on Thursday after surging coronavirus cases in the United States and Europe sparked a sell-off on Wall Street overnight, while a rebound in the Chinese yuan helped shield regional currencies from the risk-off mood. France and Germany went into lockdowns, which prompted worries that more European nations may be forced to follow suit in a move that could threaten a nascent economic recovery. Philippine's benchmark stock index slid most in the region, down 2% and was on track for its biggest drop since Aug. 19, after last week's rise of nearly 10%. The Chinese yuan rose 0.3 %, recovering losses made in the previous session. It fell on Wednesday after some banks tweaked a methodology for fixing the yuan's daily midpoint, which was seen by some as a sign that Beijing is willing to allow some weakness in its currency. The yuan's strength helped put a floor under most Asian currencies despite an appreciating U.S. dollar. The Singapore dollar, closely tied to the Chinese currency's moves due to close trade ties, rose 0.2% higher. "This has helped cap losses in other Asia-ex Japan FX as well," analysts at Maybank wrote in a note, referring to the yuan's strength. The Taiwan dollar jumped 1% while the Philippine peso also traded a touch firmer. The South Korean won also pulled back from deeper losses to stand only marginally weaker. Worries about the outcome of the U.S. election next week also overshadowed trade, given the stark difference between Democratic presidential candidate Joe Biden's trade policies towards Asia from those of President Donald Trump. "A Biden win would likely bode well for Asia, given a less aggressive trade stance/potential for stronger fiscal stimulus. Trade orientated FX such as the yuan, won, Singapore dollar and Taiwan dollar will likely be the main beneficiaries," analysts at TD Securities wrote earlier this week. They also noted that a weaker U.S. dollar would also be likely if Biden won, while a Trump win could spur a stronger dollar and further hinder appreciation in Asian currencies. Markets in Indonesia and Malaysia were shut on account of local holidays. HIGHLIGHTS ** In the Philippines, top index losers are LT Group Inc down 4.64% and Ayala Land Inc down 4.43% ** Top losers on the Singapore STI include Mapletree Commercial Trust down 3.24% and Capitaland Mall Trust down 2.2% ** Singapore's 10-year benchmark yield was up 0.1 basis points at 0.833%​​ and the 5-year benchmark yield was up 3.2 basis points at 0.496%​​ Asia stock indexes and currencies at 0449 GMT COUNTRY FX RIC FX FX INDEX STOCK STOCK DAILY YTD % S S YTD % DAILY % % Japan -0.12 +4.01 -0.36 -1.36 China <CNY=CFX +0.28 +3.77 0.08 7.26 S> India -0.20 -3.57 -0.30 -3.90 Philipp +0.08 +4.65 -1.73 -19.8 ines 0 S.Korea <KRW=KFT -0.17 +2.11 -1.35 5.27 C> Singapo +0.17 -1.34 -0.80 -23.5 re 6 Taiwan +1.06 +5.25 -1.02 5.55 Thailan -0.13 -4.23 -0.43 -23.8 d 7 (Reporting by Rashmi Ashok in Bengaluru)

EMERGING MARKETS-Malaysian shares slip on political woes as trade data supports ringgit

28 Oct 2020

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I * Ringgit climbs as Sept exports jump, trade surplus increases * 2021 Budget passage to be key test for Malaysia govt - ING * Thai baht hits over 2-week high on data boost By Rashmi Ashok Oct 28 Malaysian shares eased on Wednesday as political tensions cast doubt over whether the government could pass the 2021 budget next week, while a surge in September exports and ballooning trade surplus helped prop up the ringgit. Broader Asian equities were subdued as COVID-19 cases spiked in the United States, Russia, France and other countries, prompting curbs from many European nations, with the looming U.S. presidential election adding to worries. The Malaysian stock index fell 0.4%, continuing recent declines, as uncertainty after Prime Minister Muhyiddin Yassin's failed bid to declare a state of emergency sparked calls for his resignation. "All eyes are on the 2021 Federal Budget next week, which comes as a key test of confidence in Prime Minister Muhyiddin Yassin's coalition government," analysts at ING wrote. "We see politics continuing to exert weakening pressure on the ringgit. We are reviewing our end-year 4.18 USD/MYR forecast for a possible upward revision." While a key ally affirmed support for the premier, his position still remains precarious, with a wafer-thin majority in parliament and no guarantee that all ruling coalition lawmakers will vote in favour of the budget. The ringgit, however, reversed early losses to stand 0.2% higher after data showed Malaysia's exports jumped 13.6% in September, rising at their fastest pace in nearly two years amid a surge in demand for manufactured and agricultural goods. ING analysts say the wider trade surplus, fuelled by subdued imports, is likely to remain the key life support for the currency amidst the ongoing political uncertainty. Thailand's baht rose 0.3% to its highest in more than two weeks and the stock index added 0.5% after data showed the country's factory output dropped a smaller-than-expected 2.75% in September. Thailand is set to release trade data for September on Oct. 30. Investors will closely watch for signs of a recovery in its exports from the 8.2% drop recorded in August. The Chinese yuan eased against the dollar after some banks tweaked a methodology for fixing the yuan's daily midpoint, in what some believe is a sign that Beijing may be attempting to slow the pace of the rally in the currency. Despite the yuan's weakness casting a shadow, most Asian currencies clocked slim gains as the dollar slipped in the face of rising uncertainty around the Nov. 3 election. HIGHLIGHTS ** Top gainers on the Thailand's SETI included Thai Energy Storage Technology , up 29.36%, and Erawan Hotel Growth Property Fund, up 12.44%. ** Top losers on FTSE Bursa Malaysia Kl Index included Top Glove Corporation Bhd, down 1.68%, and Hartalega Holdings Bhd, down 1.42%. ** Singapore's 10-year benchmark yield was down 0.6 basis point at 0.843%,​​ while the 5-year benchmark yield fell 1.2 basis points to 0.464%​​. Asia stock indexes and currencies at 0649 GMT COUNTRY FX RIC FX FX INDEX STOCK STOCK DAILY YTD % S S YTD % DAILY % % Japan +0.16 +4.20 -0.29 -1.01 China <CNY=CFX -0.10 +3.75 0.52 7.25 S> India -0.09 -3.24 -0.33 -2.62 Malaysi +0.19 -1.54 -0.33 -5.88 a Philipp +0.02 +4.71 -0.58 -18.3 ines 9 S.Korea <KRW=KFT -0.45 +2.28 0.62 6.72 C> Singapo +0.12 -1.07 -0.37 -22.3 re 2 Taiwan +0.99 +5.30 -0.63 6.64 Thailan +0.26 -3.92 0.66 -22.9 d 7 (Reporting by Rashmi Ashok in Bengaluru; editing by Uttaresh.V)

EMERGING MARKETS-Malaysian shares slip on political woes as trade data supports ringgit

28 Oct 2020

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I * Ringgit climbs as Sept exports jump, trade surplus increases * 2021 Budget passage to be key test for Malaysia govt - ING * Thai baht hits over 2-week high on data boost By Rashmi Ashok Oct 28 Malaysian shares eased on Wednesday as political tensions cast doubt over whether the government could pass the 2021 budget next week, while a surge in September exports and ballooning trade surplus helped prop up the ringgit. Broader Asian equities were subdued as COVID-19 cases spiked in the United States, Russia, France and other countries, prompting curbs from many European nations, with the looming U.S. presidential election adding to worries. The Malaysian stock index fell 0.4%, continuing recent declines, as uncertainty after Prime Minister Muhyiddin Yassin's failed bid to declare a state of emergency sparked calls for his resignation. "All eyes are on the 2021 Federal Budget next week, which comes as a key test of confidence in Prime Minister Muhyiddin Yassin's coalition government," analysts at ING wrote. "We see politics continuing to exert weakening pressure on the ringgit. We are reviewing our end-year 4.18 USD/MYR forecast for a possible upward revision." While a key ally affirmed support for the premier, his position still remains precarious, with a wafer-thin majority in parliament and no guarantee that all ruling coalition lawmakers will vote in favour of the budget. The ringgit, however, reversed early losses to stand 0.2% higher after data showed Malaysia's exports jumped 13.6% in September, rising at their fastest pace in nearly two years amid a surge in demand for manufactured and agricultural goods. ING analysts say the wider trade surplus, fuelled by subdued imports, is likely to remain the key life support for the currency amidst the ongoing political uncertainty. Thailand's baht rose 0.3% to its highest in more than two weeks and the stock index added 0.5% after data showed the country's factory output dropped a smaller-than-expected 2.75% in September. Thailand is set to release trade data for September on Oct. 30. Investors will closely watch for signs of a recovery in its exports from the 8.2% drop recorded in August. The Chinese yuan eased against the dollar after some banks tweaked a methodology for fixing the yuan's daily midpoint, in what some believe is a sign that Beijing may be attempting to slow the pace of the rally in the currency. Despite the yuan's weakness casting a shadow, most Asian currencies clocked slim gains as the dollar slipped in the face of rising uncertainty around the Nov. 3 election. HIGHLIGHTS ** Top gainers on the Thailand's SETI included Thai Energy Storage Technology , up 29.36%, and Erawan Hotel Growth Property Fund, up 12.44%. ** Top losers on FTSE Bursa Malaysia Kl Index included Top Glove Corporation Bhd, down 1.68%, and Hartalega Holdings Bhd, down 1.42%. ** Singapore's 10-year benchmark yield was down 0.6 basis point at 0.843%,​​ while the 5-year benchmark yield fell 1.2 basis points to 0.464%​​. Asia stock indexes and currencies at 0649 GMT COUNTRY FX RIC FX FX INDEX STOCK STOCK DAILY YTD % S S YTD % DAILY % % Japan +0.16 +4.20 -0.29 -1.01 China <CNY=CFX -0.10 +3.75 0.52 7.25 S> India -0.09 -3.24 -0.33 -2.62 Malaysi +0.19 -1.54 -0.33 -5.88 a Philipp +0.02 +4.71 -0.58 -18.3 ines 9 S.Korea <KRW=KFT -0.45 +2.28 0.62 6.72 C> Singapo +0.12 -1.07 -0.37 -22.3 re 2 Taiwan +0.99 +5.30 -0.63 6.64 Thailan +0.26 -3.92 0.66 -22.9 d 7 (Reporting by Rashmi Ashok in Bengaluru; editing by Uttaresh.V)

EMERGING MARKETS-Malaysian shares ease on political uncertainty; Thai baht gains

28 Oct 2020

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I * Malaysia 2021 budget on Nov. 6 key test for govt - analysts * Ringgit held steady on jump in Sept trade surplus * Thai baht, stocks gain on better-than-expected factory data * Indonesian markets closed for local holiday By Rashmi Ashok Oct 28 Malaysian shares eased on Wednesday as political tensions cast doubt over whether the government will be able muster enough votes to pass the 2021 budget next week, while broader Asian shares also fell as global coronavirus cases raged on. Sentiment remained subdued as infections spiked in the United States, Russia, France and other countries recently, forcing many European nations to issue new restrictions, while the looming U.S. presidential election added to uncertainty. Malaysia's benchmark stock index was among top losers in the region, continuing recent declines after Prime Minister Muhyiddin Yassin's failed bid to declare a state of emergency sparked calls for his resignation. "All eyes are on the 2021 Federal Budget next week, which comes as a key test of confidence in Prime Minister Muhyiddin Yassin's coalition government," analysts at ING wrote. "We see politics continuing to exert weakening pressure on the ringgit. We are reviewing our end-year 4.18 USD/MYR forecast for a possible upward revision." While a key ally affirmed its support for him, his position still remains precarious, with a wafer-thin majority in parliament and no guarantee that all ruling coalition lawmakers will vote in favour of the budget. Pressure on the ringgit was offset by data which showed Malaysia's trade surplus surged in September, fuelled by a recovery in exports and a fall in imports, which ING analysts say is likely to remain the key life support for the currency amidst the ongoing political uncertainty. Thailand's baht rose 0.3% and its benchmark stock index added 0.5% after data showed the country's factory output dropped a smaller-than-expected 2.75% in September. The Philippine peso traded a shade firmer after the central bank governor Benjamin Diokno on Tuesday said there was no need to ease monetary policy further given the slew of indicators that point towards economic recovery. "Diokno may be holding steady as he refrains from pushing real policy rates deeper into the red (currently at -0.5%) while also recognizing that monetary policy has done its job as he looks to fiscal stimulus to complement his recent measures," said ING's senior economist for Philippines, Nicholas Mapa. Mapa added that the peso would likely be supported for the remainder of the year given increased foreign buying amid a drop in coronavirus infections and lower corporate demand for the dollar due to healthy dollar inflows from remittances and portfolio flows. Indonesian markets were closed on account of a local holiday and trade will resume on Nov. 2. HIGHLIGHTS ** Top losers on FTSE Bursa Malaysia Kl Index include Hartalega Holdings Bhd down 1.75% and IHH Healthcare Bhd down 1.36% ** Top gainers on the Thailand's SETI include Thai Energy Storage Technology up 29.36% and Thai Film Industries up 20% ** Malaysia's 10-year benchmark yield was up 0.5 basis points at 2.655% and 3-year benchmark yield rose 0.5 basis points to 1.783%​​ Asia stock indexes and currencies at 0421 GMT COUNTRY FX RIC FX FX INDEX STOCK STOCK DAILY YTD % S S YTD % DAILY % % Japan +0.14 +4.18 -0.29 -1.01 China <CNY=CFX -0.07 +3.79 0.16 6.87 S> India +0.00 -3.15 0.15 -2.15 Malaysi +0.02 -1.71 -0.40 -5.94 a Philipp +0.06 +4.75 -0.12 -18.0 ines 2 S.Korea <KRW=KFT -0.33 +2.41 0.01 6.08 C> Singapo +0.09 -1.10 -0.48 -22.4 re 0 Taiwan +1.03 +5.35 -0.54 6.73 Thailan +0.29 -3.89 0.42 -23.1 d 5 (Reporting by Rashmi Ashok in Bengaluru; Editing by Kim Coghill)

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