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Shashwat Awasthi

EMERGING MARKETS-Stocks rally with eyes on Fed, peso slips

28 Jul 2020

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA * S. Korean stocks enjoy best day since June 16 * Indonesia stocks lag peers * Thailand markets shut for holiday By Shashwat Awasthi July 28 Stock markets gained across Asia on Tuesday as hopes for a dovish message from the U.S. Federal Reserve this week outweighed growing concerns about how the Philippines and other regional economies are dealing with renewed coronavirus outbreaks. In a morning session which saw some recovery for the U.S. dollar after days of concern over events in the United States and a diplomatic spat with China, currencies across the region's emerging markets were mixed and even the bigger moves limited to 0.1-0.2% shifts. Stock markets in India, Malaysia and South Korea all saw strong gains, however, and the Philippines recovered from an initial crash following President Rodrigo Duterte's State of the Nation speech to rise almost 1%. Jeffrey Halley, market analyst at trading platform OANDA, said Asian stocks would remain supported ahead of the Fed's meeting on Wednesday. "Equity markets should continue to perform well with only headline risk, and not data risk, to cause a sudden change in the narrative," he said. In the address on Monday night, Duterte defended his approach to fighting the pandemic even as new cases continue to climb, while threatening to close or have the government take over telecom firms that he accused of "lousy" services. The peso, which has overlooked rising local infections and fresh U.S.-China tensions and strengthened for the last six weeks, eased as much as 0.3% before steadying. "Amidst the uncertainties brought about by the rising (virus) cases, the government has yet to provide sufficient details on the fiscal stimulus and recovery roadmap," said Jennifer Mae V. Lomboy, a fund manager at First Metro Asset Management, predicting more losses as corporate earnings flow in. Second-quarter gross domestic product data due next week is also expected to show a steep fall. Indonesian stocks underperformed, however, edging 0.2% lower as the country's total number of coronavirus cases topped 100,000. Asia stock indexes and currencies at 0706 GMT COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD % Japan -0.12 +2.95 -0.26 -4.22 China -0.02 -0.52 0.54 5.65 India +0.12 -4.50 0.92 -7.68 Indonesia +0.07 -4.14 -0.24 -18.97 Malaysia +0.06 -3.73 0.71 0.88 Philippines -0.12 +2.99 1.13 -24.16 S.Korea -0.07 -3.38 1.76 2.70 Singapore -0.01 -2.49 0.36 -19.79 Taiwan +0.81 +2.86 -0.01 4.91 Thailand 0.00 -5.59 0.00 -15.12 (Reporting by Shashwat Awasthi and A K Pranav in Bengaluru; Editing by Subhranshu Sahu)

EMERGING MARKETS-Stocks rally with eyes on Fed, peso slips

28 Jul 2020

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA * S. Korean stocks enjoy best day since June 16 * Indonesia stocks lag peers * Thailand markets shut for holiday By Shashwat Awasthi July 28 Stock markets gained across Asia on Tuesday as hopes for a dovish message from the U.S. Federal Reserve this week outweighed growing concerns about how the Philippines and other regional economies are dealing with renewed coronavirus outbreaks. In a morning session which saw some recovery for the U.S. dollar after days of concern over events in the United States and a diplomatic spat with China, currencies across the region's emerging markets were mixed and even the bigger moves limited to 0.1-0.2% shifts. Stock markets in India, Malaysia and South Korea all saw strong gains, however, and the Philippines recovered from an initial crash following President Rodrigo Duterte's State of the Nation speech to rise almost 1%. Jeffrey Halley, market analyst at trading platform OANDA, said Asian stocks would remain supported ahead of the Fed's meeting on Wednesday. "Equity markets should continue to perform well with only headline risk, and not data risk, to cause a sudden change in the narrative," he said. In the address on Monday night, Duterte defended his approach to fighting the pandemic even as new cases continue to climb, while threatening to close or have the government take over telecom firms that he accused of "lousy" services. The peso, which has overlooked rising local infections and fresh U.S.-China tensions and strengthened for the last six weeks, eased as much as 0.3% before steadying. "Amidst the uncertainties brought about by the rising (virus) cases, the government has yet to provide sufficient details on the fiscal stimulus and recovery roadmap," said Jennifer Mae V. Lomboy, a fund manager at First Metro Asset Management, predicting more losses as corporate earnings flow in. Second-quarter gross domestic product data due next week is also expected to show a steep fall. Indonesian stocks underperformed, however, edging 0.2% lower as the country's total number of coronavirus cases topped 100,000. Asia stock indexes and currencies at 0706 GMT COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD % Japan -0.12 +2.95 -0.26 -4.22 China -0.02 -0.52 0.54 5.65 India +0.12 -4.50 0.92 -7.68 Indonesia +0.07 -4.14 -0.24 -18.97 Malaysia +0.06 -3.73 0.71 0.88 Philippines -0.12 +2.99 1.13 -24.16 S.Korea -0.07 -3.38 1.76 2.70 Singapore -0.01 -2.49 0.36 -19.79 Taiwan +0.81 +2.86 -0.01 4.91 Thailand 0.00 -5.59 0.00 -15.12 (Reporting by Shashwat Awasthi and A K Pranav in Bengaluru; Editing by Subhranshu Sahu)

EMERGING MARKETS-Philippine peso weakens after Duterte address, telecoms threat

28 Jul 2020

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA * Philippine stocks hit lowest since June 1 * Thailand markets shut for holiday By Shashwat Awasthi July 28 The Philippine peso slipped and Manila stocks touched a near-two-month low on Tuesday after an address by President Rodrigo Duterte fell short of market hopes for coronavirus recovery plans while aiming threats at the country's telecom firms. In his state of the nation address on Monday, Duterte defended his approach to fighting the pandemic even as new cases continue to climb, and rapped telecom service providers for what he called "lousy" services. The peso has appreciated for the last six weeks, shrugging off a surge in infections and fresh U.S.-China tensions, but it gave up 0.2% on Tuesday. Shares of Manila-listed Globe Telecom and PLDT were the biggest drags on the benchmark index, which dropped as much as 1% before recouping some of its losses. A 5% fall in July has brought the index's losses this year to more than 25%, among Asia's worst, compared with a drop of only 1% for MSCI's broadest index of Asian shares ex-Japan. . Bourses elsewhere among the region's emerging markets posted gains on Tuesday. Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, said the Duterte address "was expected to say more about the economic recovery plan and the healthcare aspect of the COVID-19 spread and its subsequent control." "I expected a very forward-looking and hopeful speech that would help propel the economy and tackle head-on the challenges of the once-in-a-lifetime health and economic crisis," he said. Most other Southeast Asian currencies firmed modestly, benefiting from global weakness that has plagued the U.S. dollar since last week, driving the greenback to a near two-year low. Stock markets globally were buoyed by hopes that the U.S. Federal Reserve would reiterate its accommodative stance on Wednesday and signal it was ready to unleash even more stimulus spending to prop up the world's largest economy. "We think that Fed Chair Powell is unlikely to change his dovish tone and is likely to shed light on how much more accommodative monetary (policy) can be," DBS Group Research strategists wrote, adding that the bank's stance had been priced into markets. Still, Indonesian stocks missed out on the gains, edging 0.2% lower as the country's total number of coronavirus cases topped 100,000. Asia stock indexes and currencies at 0401 GMT COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD % Japan -0.15 +2.92 0.07 -3.91 China -0.05 -0.55 0.60 5.72 India +0.00 -4.61 0.39 -8.16 Indonesia +0.07 -4.14 -0.10 -18.85 Malaysia +0.12 -3.67 0.79 0.96 Philippines -0.20 +2.91 0.03 -24.99 S.Korea -0.28 -3.59 1.21 2.14 Singapore -0.03 -2.50 0.30 -19.84 Taiwan +0.30 +2.33 -0.10 4.82 Thailand +0.00 -5.59 0.00 -15.12 (Reporting by Shashwat Awasthi in Bengaluru; Editing by Patrick Graham and Kenneth Maxwell)

EMERGING MARKETS-Philippine peso weakens after Duterte address, telecoms threat

28 Jul 2020

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA * Philippine stocks hit lowest since June 1 * Thailand markets shut for holiday By Shashwat Awasthi July 28 The Philippine peso slipped and Manila stocks touched a near-two-month low on Tuesday after an address by President Rodrigo Duterte fell short of market hopes for coronavirus recovery plans while aiming threats at the country's telecom firms. In his state of the nation address on Monday, Duterte defended his approach to fighting the pandemic even as new cases continue to climb, and rapped telecom service providers for what he called "lousy" services. The peso has appreciated for the last six weeks, shrugging off a surge in infections and fresh U.S.-China tensions, but it gave up 0.2% on Tuesday. Shares of Manila-listed Globe Telecom and PLDT were the biggest drags on the benchmark index, which dropped as much as 1% before recouping some of its losses. A 5% fall in July has brought the index's losses this year to more than 25%, among Asia's worst, compared with a drop of only 1% for MSCI's broadest index of Asian shares ex-Japan. . Bourses elsewhere among the region's emerging markets posted gains on Tuesday. Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, said the Duterte address "was expected to say more about the economic recovery plan and the healthcare aspect of the COVID-19 spread and its subsequent control." "I expected a very forward-looking and hopeful speech that would help propel the economy and tackle head-on the challenges of the once-in-a-lifetime health and economic crisis," he said. Most other Southeast Asian currencies firmed modestly, benefiting from global weakness that has plagued the U.S. dollar since last week, driving the greenback to a near two-year low. Stock markets globally were buoyed by hopes that the U.S. Federal Reserve would reiterate its accommodative stance on Wednesday and signal it was ready to unleash even more stimulus spending to prop up the world's largest economy. "We think that Fed Chair Powell is unlikely to change his dovish tone and is likely to shed light on how much more accommodative monetary (policy) can be," DBS Group Research strategists wrote, adding that the bank's stance had been priced into markets. Still, Indonesian stocks missed out on the gains, edging 0.2% lower as the country's total number of coronavirus cases topped 100,000. Asia stock indexes and currencies at 0401 GMT COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD % Japan -0.15 +2.92 0.07 -3.91 China -0.05 -0.55 0.60 5.72 India +0.00 -4.61 0.39 -8.16 Indonesia +0.07 -4.14 -0.10 -18.85 Malaysia +0.12 -3.67 0.79 0.96 Philippines -0.20 +2.91 0.03 -24.99 S.Korea -0.28 -3.59 1.21 2.14 Singapore -0.03 -2.50 0.30 -19.84 Taiwan +0.30 +2.33 -0.10 4.82 Thailand +0.00 -5.59 0.00 -15.12 (Reporting by Shashwat Awasthi in Bengaluru; Editing by Patrick Graham and Kenneth Maxwell)

EMERGING MARKETS-Philippine stocks near two-month low, virus woes hit Vietnam

27 Jul 2020

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA * Vietnam stocks hit lowest since May 6 * Peso hits more than 3-1/2 year high * Thailand markets shut for holiday By Shashwat Awasthi and Pranav A K July 27 Philippines shares sank more than 2% on Monday, deepening a sell-off this month, as coronavirus cases mounted and the country's central bank gave a grim economic outlook for 2020 ahead of a state of the nation address from President Rodrigo Duterte. The Taiwanese dollar and the South Korean won led gains across Asia against a globally weak U.S. dollar, with Indonesia's rupiah firming for the fifth straight session. In a quarterly inflation report, however, the Bangko Sentral NG Pilipinas affirmed its earlier view that its economy would continue to contract for the next two quarters, highlighting the pain ahead as new virus cases continue to run at more than 2,000 daily. The risk of a second wave of infections also plagued Vietnam stocks, which plunged as much as 5.8% after the country reported new locally transmitted coronavirus cases in more than three months. Dominic Scriven, chairman of Ho Chi Minh-based asset manager Dragon Capital, said the discovery of the new virus cluster had been a "shock to the system" for investors. In Manila, the central bank again emphasised that keeping policy accommodative would mitigate risks to the economy, but stocks still slid for a fifth consecutive day to their lowest since June 1. The fall leaves them down around 25% for the year against a dip of just 2% for MSCI's broad index of Asia shares outside Japan. Jennifer Mae V. Lomboy, a fund manager at First Metro Asset Management said Philippine stocks faced "downward bias as the market awaits direction and concrete support from the government" in the state of the nation address. "The officials' balanced action between virus containment and economic activity resumption are crucial for investors at this point," she said. Riding the global wave against the dollar, however, the peso hit its highest since November 2016. Investors have been driven out of the traditional security of the dollar by worries about renewed lockdowns in the United States, bickering over a new fiscal support package and escalating tensions with China. HIGHLIGHTS: ** Singapore's 10-year benchmark yield is up 1 basis points at 0.822% ** In the Philippines, top index losers are Bloomberry Resorts down 8.09%, Bank of the Philippine Islands down 6.47% and Robinsons Land down 5.66% ** Top gainers on the Jakarta stock index include Bank Maybank Indonesia Tbk up 34.44%, Bank IBK Indonesia Tbk up 34.29% and Sarana Meditama Metropolitan Tbk up ​25.76% Asia stock indexes and currencies at 0706 GMT COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD % Japan +0.60 +2.96 -0.16 -3.98 China +0.27 -0.50 -0.04 4.77 India -0.02 -4.52 -0.37 -8.34 Indonesia +0.28 -4.28 0.46 -18.94 Malaysia +0.28 -3.74 0.08 0.13 Philippines +0.22 +2.95 -2.37 -25.01 S.Korea +0.45 -3.32 0.79 0.92 Singapore +0.16 -2.57 -0.20 -20.12 Taiwan +0.68 +2.56 2.31 4.93 Thailand 0.00 -5.59 0.00 -15.12 (Reporting by Shashwat Awasthi and A K Pranav in Bengaluru; editing by Patrick Graham and Vinay Dwivedi)

EMERGING MARKETS-Philippine stocks near two-month low, virus woes hit Vietnam

27 Jul 2020

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA * Vietnam stocks hit lowest since May 6 * Peso hits more than 3-1/2 year high * Thailand markets shut for holiday By Shashwat Awasthi and Pranav A K July 27 Philippines shares sank more than 2% on Monday, deepening a sell-off this month, as coronavirus cases mounted and the country's central bank gave a grim economic outlook for 2020 ahead of a state of the nation address from President Rodrigo Duterte. The Taiwanese dollar and the South Korean won led gains across Asia against a globally weak U.S. dollar, with Indonesia's rupiah firming for the fifth straight session. In a quarterly inflation report, however, the Bangko Sentral NG Pilipinas affirmed its earlier view that its economy would continue to contract for the next two quarters, highlighting the pain ahead as new virus cases continue to run at more than 2,000 daily. The risk of a second wave of infections also plagued Vietnam stocks, which plunged as much as 5.8% after the country reported new locally transmitted coronavirus cases in more than three months. Dominic Scriven, chairman of Ho Chi Minh-based asset manager Dragon Capital, said the discovery of the new virus cluster had been a "shock to the system" for investors. In Manila, the central bank again emphasised that keeping policy accommodative would mitigate risks to the economy, but stocks still slid for a fifth consecutive day to their lowest since June 1. The fall leaves them down around 25% for the year against a dip of just 2% for MSCI's broad index of Asia shares outside Japan. Jennifer Mae V. Lomboy, a fund manager at First Metro Asset Management said Philippine stocks faced "downward bias as the market awaits direction and concrete support from the government" in the state of the nation address. "The officials' balanced action between virus containment and economic activity resumption are crucial for investors at this point," she said. Riding the global wave against the dollar, however, the peso hit its highest since November 2016. Investors have been driven out of the traditional security of the dollar by worries about renewed lockdowns in the United States, bickering over a new fiscal support package and escalating tensions with China. HIGHLIGHTS: ** Singapore's 10-year benchmark yield is up 1 basis points at 0.822% ** In the Philippines, top index losers are Bloomberry Resorts down 8.09%, Bank of the Philippine Islands down 6.47% and Robinsons Land down 5.66% ** Top gainers on the Jakarta stock index include Bank Maybank Indonesia Tbk up 34.44%, Bank IBK Indonesia Tbk up 34.29% and Sarana Meditama Metropolitan Tbk up ​25.76% Asia stock indexes and currencies at 0706 GMT COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD % Japan +0.60 +2.96 -0.16 -3.98 China +0.27 -0.50 -0.04 4.77 India -0.02 -4.52 -0.37 -8.34 Indonesia +0.28 -4.28 0.46 -18.94 Malaysia +0.28 -3.74 0.08 0.13 Philippines +0.22 +2.95 -2.37 -25.01 S.Korea +0.45 -3.32 0.79 0.92 Singapore +0.16 -2.57 -0.20 -20.12 Taiwan +0.68 +2.56 2.31 4.93 Thailand 0.00 -5.59 0.00 -15.12 (Reporting by Shashwat Awasthi and A K Pranav in Bengaluru; editing by Patrick Graham and Vinay Dwivedi)

EMERGING MARKETS-Currencies gain, Vietnam joins Philippines share slide

27 Jul 2020

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA * Rupiah gains for 5th day * Vietnam stocks hit lowest since May 7 * Thailand markets shut for holiday By Shashwat Awasthi and Pranav A K July 27 Emerging Asian currencies rose on Monday as geopolitical and economic concerns dented the U.S. dollar, while shares in the Philippines and Vietnam sank amid concerns over coronavirus outbreaks. In the Philippines, where a surge in cases has driven a 5% fall in the stock market this month, investors will watch a state of the nation address from Philippine President Rodrigo Duterte for signs of more restrictions on economic activity. Vietnamese shares plunged as much as 4.2% as the country's first locally transmitted coronavirus cases in more than three months sparked concerns of a second wave of infections. Investors have sought the safety of gold and other perceived safe-haven assets in recent sessions, and have been driven out of the normally sought-after dollar by uncertainty around renewed lockdowns in the United States, as well as bickering over the latest fiscal support package and escalating tensions with China. A U.S. Federal Reserve meeting this week comes on the back of polls showing analysts have slashed expectations for the world's largest economy, predicting zero growth for the second half of the year ahead of official second quarter numbers next month. "Asian FX, after a soft start, has shown some resilience," said Robert Carnell, ING's regional head of research, Asia-Pacific. "It looks as if the USD is going to remain offered today, and this may persist until after the Fed on Wednesday, and before the (U.S.) GDP result." The Taiwanese dollar and the South Korean won led gains, while Indonesia's rupiah firmed for the fifth straight session, and the Philippine peso headed for its best day in three weeks. Most regional share markets were higher after a broad selloff on Friday following China's tit-for-tat retaliation for its Houston consulate closure. China said it had taken over the premises of the U.S. consulate in the southwestern city of Chengdu on Monday. In a news conference to discuss the Philippines' quarterly inflation report, its central bank chief emphasised that keeping policy accommodative would mitigate risks to the economy, but Manila shares still slid for the fifth consecutive day. The 1.6% fall leaves them down around 25% for the year against a dip of just 2% for MSCI's broad index of Asia shares outside Japan. Jennifer Mae V. Lomboy, a fund manager at First Metro Asset Management said stocks faced "downward bias as the market awaits direction and concrete support from the government" in the state of the nation address. "The officials' balanced action between virus containment and economic activity resumption are crucial for investors at this point," she said. HIGHLIGHTS: ** Singapore's 10-year benchmark yield is up 1.5 basis points at 0.828% ** In the Philippines, top index losers are Bloomberry Resorts down 8.09%, Robinsons Land down 5.91% and Security Bank down 4.45% ** Top gainers on the Jakarta stock index include Bank Maybank Indonesia Tbk up 34.44%, Bank IBK Indonesia Tbk up 34.29% and Prima Cakrawala Abadi Tbk up 24.82% Asia stock indexes and currencies at 0411 GMT COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD % Japan +0.48 +2.84 -0.37 -4.18 China +0.24 -0.53 0.09 4.90 India +0.09 -4.43 -0.10 -8.10 Indonesia +0.14 -4.41 0.41 -18.98 Malaysia +0.26 -3.77 0.17 0.22 Philippines +0.31 +3.03 -1.79 -24.56 S.Korea +0.54 -3.24 1.15 1.28 Singapore +0.20 -2.53 0.07 -19.91 Taiwan +0.60 +2.47 2.56 5.19 Thailand 0.00 -5.59 0.00 -15.12 (Reporting by Shashwat Awasthi and A K Pranav in Bengaluru; editing by Patrick Graham and Kim Coghill)

EMERGING MARKETS-Currencies gain, Vietnam joins Philippines share slide

27 Jul 2020

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA * Rupiah gains for 5th day * Vietnam stocks hit lowest since May 7 * Thailand markets shut for holiday By Shashwat Awasthi and Pranav A K July 27 Emerging Asian currencies rose on Monday as geopolitical and economic concerns dented the U.S. dollar, while shares in the Philippines and Vietnam sank amid concerns over coronavirus outbreaks. In the Philippines, where a surge in cases has driven a 5% fall in the stock market this month, investors will watch a state of the nation address from Philippine President Rodrigo Duterte for signs of more restrictions on economic activity. Vietnamese shares plunged as much as 4.2% as the country's first locally transmitted coronavirus cases in more than three months sparked concerns of a second wave of infections. Investors have sought the safety of gold and other perceived safe-haven assets in recent sessions, and have been driven out of the normally sought-after dollar by uncertainty around renewed lockdowns in the United States, as well as bickering over the latest fiscal support package and escalating tensions with China. A U.S. Federal Reserve meeting this week comes on the back of polls showing analysts have slashed expectations for the world's largest economy, predicting zero growth for the second half of the year ahead of official second quarter numbers next month. "Asian FX, after a soft start, has shown some resilience," said Robert Carnell, ING's regional head of research, Asia-Pacific. "It looks as if the USD is going to remain offered today, and this may persist until after the Fed on Wednesday, and before the (U.S.) GDP result." The Taiwanese dollar and the South Korean won led gains, while Indonesia's rupiah firmed for the fifth straight session, and the Philippine peso headed for its best day in three weeks. Most regional share markets were higher after a broad selloff on Friday following China's tit-for-tat retaliation for its Houston consulate closure. China said it had taken over the premises of the U.S. consulate in the southwestern city of Chengdu on Monday. In a news conference to discuss the Philippines' quarterly inflation report, its central bank chief emphasised that keeping policy accommodative would mitigate risks to the economy, but Manila shares still slid for the fifth consecutive day. The 1.6% fall leaves them down around 25% for the year against a dip of just 2% for MSCI's broad index of Asia shares outside Japan. Jennifer Mae V. Lomboy, a fund manager at First Metro Asset Management said stocks faced "downward bias as the market awaits direction and concrete support from the government" in the state of the nation address. "The officials' balanced action between virus containment and economic activity resumption are crucial for investors at this point," she said. HIGHLIGHTS: ** Singapore's 10-year benchmark yield is up 1.5 basis points at 0.828% ** In the Philippines, top index losers are Bloomberry Resorts down 8.09%, Robinsons Land down 5.91% and Security Bank down 4.45% ** Top gainers on the Jakarta stock index include Bank Maybank Indonesia Tbk up 34.44%, Bank IBK Indonesia Tbk up 34.29% and Prima Cakrawala Abadi Tbk up 24.82% Asia stock indexes and currencies at 0411 GMT COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD % Japan +0.48 +2.84 -0.37 -4.18 China +0.24 -0.53 0.09 4.90 India +0.09 -4.43 -0.10 -8.10 Indonesia +0.14 -4.41 0.41 -18.98 Malaysia +0.26 -3.77 0.17 0.22 Philippines +0.31 +3.03 -1.79 -24.56 S.Korea +0.54 -3.24 1.15 1.28 Singapore +0.20 -2.53 0.07 -19.91 Taiwan +0.60 +2.47 2.56 5.19 Thailand 0.00 -5.59 0.00 -15.12 (Reporting by Shashwat Awasthi and A K Pranav in Bengaluru; editing by Patrick Graham and Kim Coghill)

EMERGING MARKETS-Stocks sink as China retaliates for Houston, Thai exports sink 23%

24 Jul 2020

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA * Baht set for fourth straight weekly loss * Singapore stocks hit lowest since June 29 * Malaysia stocks set for worst day in 5 weeks By Shashwat Awasthi July 24 Thai shares led a slide in emerging Asian markets on Friday as a bigger-than-expected drop in June exports added to the impact on sentiment across the region from the diplomatic spat between China and the United States. Benchmark indexes in Singapore, Indonesia and Malaysia all tumbled more than 1%, following a near 4% plunge in Chinese equities after China ordered the U.S. consulate in Chengdu to shut, a reprisal for its Houston consulate being closed this week. Bangkok shares hit their lowest in 10 days, with trade data adding to the gloom and highlighting the damage caused by the coronavirus pandemic. "While the inevitability of deteriorating U.S.-China relations as a structural feature of our geo-political landscape was never in doubt, the shifts appear to be hastened," Mizuho analysts said. Currencies across the region have been propped up this week by broad weakness of the dollar amid Sino-U.S. tensions and doubts over the latest round of U.S. stimulus, and many eked out gains again on Friday. "Forex markets' U.S.-China rhetoric herd-immunity appears to be getting stronger by the day, as they accept the conflict as the new norm," said Jeffrey Halley, a market analyst at trading platform OANDA. A Reuters poll on Thursday showed that investors had raised their long bets on the Chinese yuan and most other Asian currencies, on signs of a recovery in the world's second-largest economy and news of progress in coronavirus vaccine trials. The Thai baht eased 0.2%, however, and was set to weaken for the fourth successive week as policy uncertainty lingered. Policymakers had earlier feared that a rapid rise in the currency could hinder Thailand's economic recovery and the June data showed exports sank 23% from a year earlier, the worst since July 2009. Indonesia's rupiah strengthened for the fourth straight day and continued to recoup the more than 2% loss it suffered last week. A senior finance ministry official said the government may begin selling bonds directly to the central bank next week under a fiscal deficit financing scheme. As the number of coronavirus cases continued to grow, the finance ministry cut its economic outlook to zero growth or a slight contraction in 2020, which weighed on Jakarta stocks. HIGHLIGHTS: ** Indonesian 10-year benchmark yields are down 5.9 basis points at 6.85% ** Top losers on Thailand's SETI include Matichon PCL down 13.39%, Union Pioneer PCL down 13.13% and G J Steel PCL down 9.09% ** Top losers on FTSE Bursa Malaysia Kl Index include Petronas Dagangan down 3.99%, PETRONAS Chemicals Group down 2.96% and Top Glove Corporation down 2.68% Asia stock indexes and currencies at 0703 GMT COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD % Japan +0.54 +2.19 -0.58 -3.83 China -0.19 -0.77 -3.60 5.09 India -0.06 -4.64 -0.75 -8.53 Indonesia +0.07 -4.54 -1.21 -19.31 Malaysia -0.07 -3.99 -1.20 -0.10 Philippines +0.15 +2.62 -0.43 -23.19 S.Korea -0.35 -3.75 -0.71 0.13 Singapore +0.02 -2.96 -0.97 -19.72 Taiwan +0.29 +2.22 -0.88 2.56 Thailand -0.09 -5.77 -1.23 -14.99 (Reporting by Shashwat Awasthi and A K Pranav in Bengaluru; Editing by Subhranshu Sahu)

EMERGING MARKETS-Stocks sink as China retaliates for Houston, Thai exports sink 23%

24 Jul 2020

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA * Baht set for fourth straight weekly loss * Singapore stocks hit lowest since June 29 * Malaysia stocks set for worst day in 5 weeks By Shashwat Awasthi July 24 Thai shares led a slide in emerging Asian markets on Friday as a bigger-than-expected drop in June exports added to the impact on sentiment across the region from the diplomatic spat between China and the United States. Benchmark indexes in Singapore, Indonesia and Malaysia all tumbled more than 1%, following a near 4% plunge in Chinese equities after China ordered the U.S. consulate in Chengdu to shut, a reprisal for its Houston consulate being closed this week. Bangkok shares hit their lowest in 10 days, with trade data adding to the gloom and highlighting the damage caused by the coronavirus pandemic. "While the inevitability of deteriorating U.S.-China relations as a structural feature of our geo-political landscape was never in doubt, the shifts appear to be hastened," Mizuho analysts said. Currencies across the region have been propped up this week by broad weakness of the dollar amid Sino-U.S. tensions and doubts over the latest round of U.S. stimulus, and many eked out gains again on Friday. "Forex markets' U.S.-China rhetoric herd-immunity appears to be getting stronger by the day, as they accept the conflict as the new norm," said Jeffrey Halley, a market analyst at trading platform OANDA. A Reuters poll on Thursday showed that investors had raised their long bets on the Chinese yuan and most other Asian currencies, on signs of a recovery in the world's second-largest economy and news of progress in coronavirus vaccine trials. The Thai baht eased 0.2%, however, and was set to weaken for the fourth successive week as policy uncertainty lingered. Policymakers had earlier feared that a rapid rise in the currency could hinder Thailand's economic recovery and the June data showed exports sank 23% from a year earlier, the worst since July 2009. Indonesia's rupiah strengthened for the fourth straight day and continued to recoup the more than 2% loss it suffered last week. A senior finance ministry official said the government may begin selling bonds directly to the central bank next week under a fiscal deficit financing scheme. As the number of coronavirus cases continued to grow, the finance ministry cut its economic outlook to zero growth or a slight contraction in 2020, which weighed on Jakarta stocks. HIGHLIGHTS: ** Indonesian 10-year benchmark yields are down 5.9 basis points at 6.85% ** Top losers on Thailand's SETI include Matichon PCL down 13.39%, Union Pioneer PCL down 13.13% and G J Steel PCL down 9.09% ** Top losers on FTSE Bursa Malaysia Kl Index include Petronas Dagangan down 3.99%, PETRONAS Chemicals Group down 2.96% and Top Glove Corporation down 2.68% Asia stock indexes and currencies at 0703 GMT COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD % Japan +0.54 +2.19 -0.58 -3.83 China -0.19 -0.77 -3.60 5.09 India -0.06 -4.64 -0.75 -8.53 Indonesia +0.07 -4.54 -1.21 -19.31 Malaysia -0.07 -3.99 -1.20 -0.10 Philippines +0.15 +2.62 -0.43 -23.19 S.Korea -0.35 -3.75 -0.71 0.13 Singapore +0.02 -2.96 -0.97 -19.72 Taiwan +0.29 +2.22 -0.88 2.56 Thailand -0.09 -5.77 -1.23 -14.99 (Reporting by Shashwat Awasthi and A K Pranav in Bengaluru; Editing by Subhranshu Sahu)

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