* Chinese yuan set for second weekly loss
* Malaysia, Philippines extend lockdowns
* Ringgit will remain Asian underperformer - ING
* Taiwan dollar on track for third weekly gain
(Adds text, updates prices)
By Anushka Trivedi
April 24 (Reuters) - Asian currencies slipped on Friday as
risk appetite was weakened by lockdown extensions in parts of
the region to curb the spread of the novel coronavirus, and a
report that the latest COVID-19 experimental drug flopped in a
clinical trial.
Horrid business activity data from the United States and the
euro zone also added to the gloom as it reminded investors of
the economic damage inflicted by the pandemic. The safe-haven U.S. dollar .DXY firmed against rivals,
while the benchmark Treasury yields US10YT=RR dropped. FRX/
Meanwhile, Malaysia and the Philippines joined Indonesia and
Singapore in widening their existing restriction orders until at
least mid-May as the coronavirus infection rate showed no signs
of abating.
Leading losses in the region, the relatively more
risk-sensitive Indonesian rupiah IDR= weakened 0.7%.
The Malaysian ringgit MYR=MY and the Philippine peso
PHP=PH dropped 0.1% and 0.3% respectively, while local stock
markets .KLSE .PSI also fell.
Morgan Stanley analysts painted a grim outlook for Asian
economies going under extended lockdowns as these measures will
exert severe growth pressure in the second quarter.
Beyond this, "the continuation of steady-state soft social
distancing until a vaccine is found is likely to cap the pace of
recovery in the second half," they said.
In another blow to investor sentiment, a report said Gilead
Sciences Inc's GILD.O experimental antiviral drug flopped, but
the drugmaker said the findings were inconclusive because the
study was terminated early. The weakness in Asian currencies "could largely be
attributed to market players' preference to square positions
ahead of the weekend in this climate of uncertainty," Maybank
analysts wrote.
The South Korean won KRW=KFTC and the Thai baht THB=TH
gave up about 0.5% each, while the Singapore dollar SGD= fell
0.2% even after an unexpected surge in the city-state's March
industrial output. The Chinese yuan CNY=CFXS declined 0.3% against the
greenback and was set for a second straight weekly loss. CNY/
The Taiwan dollar TWD=TP traded little changed but was on
track to post a third straight weekly gain, demonstrating its
recent resilience to the downturn.
MALAYSIAN RINGGIT
The ringgit, whacked by the recent plunge in crude prices as
the country is a net oil exporter, has lost about 1.3% over the
past two weeks.
Late on Thursday, Malaysia said it would extend travel and
other curbs until May 14 but might consider allowing some
sectors to resume operations.
The extension of partial lockdown adds downside risk to
quarterly GDP contraction estimates, and with March inflation
turning negative, the central bank will likely ease rates by at
least 50 basis point at its meeting on May 5, ING economists
said in a note.
"The MYR should remain an Asian underperformer with the
added drag from weak global oil prices," they added.
The following table shows rates for Asian currencies against
the dollar at 0601 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 107.630 107.58 -0.05
Sing dlr 1.427 1.4242 -0.21
Taiwan dlr 30.062 30.072 +0.03
Korean won 1236.300 1229.7 -0.53
Baht 32.440 32.3 -0.43
Peso 50.790 50.64 -0.30
Rupiah 15450.000 15350 -0.65
Rupee 76.400 76.07 -0.43
Ringgit 4.360 4.355 -0.11
Yuan 7.086 7.0672 -0.26
Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 107.630 108.61 +0.91
Sing dlr 1.427 1.3444 -5.80
Taiwan dlr 30.062 30.106 +0.15
Korean won 1236.300 1156.40 -6.46
Baht 32.440 29.91 -7.80
Peso 50.790 50.65 -0.28
Rupiah 15450.000 13880 -10.16
Rupee 76.400 71.38 -6.57
Ringgit 4.360 4.0890 -6.22
Yuan 7.086 6.9632 -1.73