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EMERGING MARKETS-Asia FX firm on hopes of low U.S. rates; Indonesia rupiah strong

Published 05/10/2021, 12:34 PM
Updated 05/10/2021, 12:40 PM
© Reuters.
USD/JPY
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USD/SGD
-
USD/IDR
-
USD/MYR
-
USD/PHP
-
JKSE
-
ID10YT=RR
-
KS11
-
SETI
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ICT
-
RLC
-
CPH
-
KKC
-

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Indonesian rupiah eyes best day since Jan. 4
* Indonesian 10-yr bond yields at lowest since Feb. 18
* Taiwan dollar hits 24-year high on export boost
* Philippine peso dips ahead of Q1 GDP data on Tuesday

By Rashmi Ashok
May 10 (Reuters) - Asian currencies rose against the U.S.
dollar on Monday, with the Indonesian rupiah leading gains, as
weaker than expected U.S. jobs data pushed the greenback lower
on expectations that interest rates would remain low for longer.
Data released on Friday showed U.S. job growth in April
missed expectations by a large margin, quelling worries that a
pick up in consumer prices could force the Federal Reserve to
raise interest rates earlier than it has outlined. Higher rates
typically boost the dollar by attracting savers. The Indonesian rupiah IDR=ID rose 0.8% to 14,160 against
the dollar and was on track for its best session since Jan. 4,
as the country's recent economic output data indicated an
economic recovery was likely, and foreign investors returned to
its high-yielding debt.
"Tentative signs of recovery in portfolio flows are setting
in, supporting the recent USD-IDR dip. Month to date inflows
into equities and sovereigns are at $71.4 million as of May 7,
and $100.6 million as of May 6, respectively," analysts at
Maybank wrote.
Outflows, dividend repatriation pressure and concerns about
Bank Indonesia's autonomy had seen the rupiah slump this year,
but it recently found favour among yield-seekers as the Federal
Reserve asserted a dovish stance.
Benchmark 10-year bond yields in Indonesia ID10YT=RR fell
nearly 5 basis points to 6.394% as investor demand rose, with
yields standing at their lowest since Feb. 18.
China's onshore yuan CNY=CFXS strengthened past 6.43 per
dollar for the first time since Feb. 10, building on Friday's
gains that came after robust trade data for April showed exports
beating forecasts. The Taiwan dollar TWD=TP rose 0.6% to 27.74 per dollar,
its highest since May 20, 1997, taking support from data
released late on Friday that showed its April exports jumped
38.7%, smashing expectations of a 26.9% rise in a Reuters poll.
The island's exports have been surging in recent months, as
demand for microchips and gadgets remained strong in the
work-from-home COVID-19 pandemic boom, with officials expecting
that cumulative second-quarter exports could exceed $100
billion. Philippine's peso PHP= traded marginally lower ahead of
gross domestic product (GDP) data expected on Tuesday.
Analysts at Mizuho expect the country to post a contraction
in GDP to -3.5% in the first quarter, as a lockdown in capital
city Manila in late March and a slow vaccine drive hinder early
signs of recovery.
Equities rose broadly in the region, with South Korean
stocks .KS11 adding 1.4% and Indonesian stocks .JKSE up
0.6%.

HIGHLIGHTS:

** In the Philippines, top index gainers are Robinsons Land
Corp RLC.PS , up 4.61%, and International Container Terminal
Services Inc ICT.PS , up 3.55%
** Top gainers on Thailand's SETI .SETI include Castle
Peak Holdings PCL CPH.BK , up 21.46%, and Kulthorn Kirby PCL
KKC.BK , up 17.07%
** Malaysian ringgit strengthened 0.17% against the dollar
to 4.1 ringgit

Asia stock indexes and
currencies at 0342 GMT
COUNTRY FX RIC FX FX INDE STOCKS STOCK
DAILY YTD % X DAILY S YTD
% % %
Japan JPY= -0.28 -5.20 <.N2 0.84 7.87
25>
China S> EC>
India INR=IN 0.00 -0.61 <.NS 0.00 6.02
EI>
Indones IDR= +0.65 -1.04 <.JK 0.63 -0.22
ia SE>
Malaysi MYR= +0.17 -2.02 <.KL 0.05 -2.40
a SE>
Philipp PHP= -0.09 +0.41 <.PS 0.90 -11.5
ines I> 5
S.Korea C> 11>
Singapo SGD= -0.11 -0.39 <.ST -0.63 11.83
re I>
Taiwan TWD=TP +0.56 +2.63 <.TW -0.26 17.02
II>
Thailan THB=TH +0.10 -3.76 <.SE -0.37 8.96
d TI>




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