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EMERGING MARKETS-Asia FX, stocks get vaccine boost as rebound hopes bloom

Published 12/03/2020, 12:39 PM
Updated 12/03/2020, 12:40 PM
© Reuters.
USD/JPY
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USD/SGD
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USD/IDR
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USD/MYR
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USD/PHP
-
JKSE
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KLSE
-
KS11
-
TLMM
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AXIA
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PSI
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STI
-
MPI
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RLC
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SECB
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PMET
-

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I
* Manila shares up for 3rd straight day
* S. Korean stocks hit fresh record high

By Shashwat Awasthi
Dec 3 (Reuters) - Emerging Asian currencies and stocks
broadly firmed on Thursday, as news that Britain would start
vaccinating citizens against the coronavirus next week fanned
hopes of a swift global economic rebound next year as the
pandemic subsides.
Signs of progress in U.S. stimulus talks overnight also
supported risk appetite and investors shunned the U.S. dollar in
favour of currencies with higher yields and other emerging
market assets. Britain on Wednesday became the first western country to
approve Pfizer Inc's PFE.N COVID-19 vaccine, with its chief
executive confident that vaccine supply would outpace demand by
the end of 2021. "Vaccines have provided a shot in the arm for sentiment
thanks to the improving likelihood of a faster and more robust
growth recovery," Societe Generale analysts said in a report.
Malaysian stocks .KLSE jumped 0.9% to lead gains in
Southeast Asia, while shares in South Korea .KS11 and
Singapore .STI also rose.
Indonesian stocks .JKSE hit a more than nine-month high,
but later gave up gains to trade lower after the country's
president said he hoped the central bank would take on "a more
significant role" in upcoming reforms. Proposals made in recent months to expand Bank Indonesia's
mandate have irked investors and analysts and raised doubts
about the central bank's independence.
Most regional currencies traded higher as the dollar
continued to plumb a near two-and-a-half year low. FRX/
The greenback has been sold-off since last month as market
participants pile into riskier holdings amid positive vaccine
news and hopes of further stimulus support, and analysts at
Goldman Sachs contend this trend may continue.
"An integral part of our negative dollar outlook for 2021 is
that vaccine development and distribution will lead to
coordinated global growth, helping to catalyze portfolio
outflows from the U.S. into other markets," they said.
"Portfolio flows to more pro-growth sectors, particularly in
China and other emerging markets, are likely a key factor behind
the dollar's recent depreciation, and we expect that to
continue."
Philippine stocks .PSI added 0.6% after data showed the
country's unemployment rate eased in October as coronavirus
curbs were gradually lifted, while Thai shares <.SETI >
bounced 0.4%.
Thai officials on Wednesday announced plans for 43.5 billion
baht ($1.44 billion) of additional stimulus to try to boost
domestic consumption and revive the tourism-reliant economy,
even as global infections continue to rise. Thailand also faces risk from continued political
uncertainty and anti-government protests, which have been raging
for months. "The protests do not bode well for an already-contracting
economy. We see political tensions mounting and lasting into
2021, with no clear solution in sight at this juncture," said
Tim Leelahaphan, an economist at Standard Chartered.

HIGHLIGHTS:

** Indonesian 10-year benchmark yields are up 5 basis points
at 6.228%
** Top gainers on FTSE Bursa Malaysia Kl Index include
Axiata Group AXIA.KL up 2.7%, Telekom Malaysia TLMM.KL up
2.39% and Press Metal Aluminium PMET.KL up​ 2.31%
** In the Philippines, top index gainers are Security Bank
SECB.PS up 6.48%, Metro Pacific Investments MPI.PS up 4.26%
and Robinsons Land RLC.PS up​ 4.18%


Asia stock indexes and currencies
at 0403 GMT
COUNTRY FX RIC FX FX YTD INDE STOCK STOC
DAILY % X S KS
% DAILY YTD
% %
Japan JPY= -0.04 +3.99 <.N2 0.18 13.4
25> 9
China S> EC> 9
India INR=IN +0.01 -3.21 <.NS 0.44 8.24
EI>
Indones IDR= -0.07 -1.56 <.JK 0.32 -7.4
ia SE> 1
Malaysi MYR= +0.12 +0.47 <.KL 0.80 1.44
a SE>
Philipp PHP= -0.01 +5.42 <.PS 0.60 -8.8
ines I> 6
S.Korea C> 11> 2
Singapo SGD= +0.03 +0.56 <.ST 0.17 -12.
re I> 63
Taiwan TWD=TP +0.93 +5.63 <.TW 0.24 16.8
II> 9
Thailan THB=TH +0.00 -0.96 <.SE 0.48 -9.8
d TI> 2

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