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EMERGING MARKETS-Asia stocks mostly higher on positive U.S., China cues

Published 03/10/2021, 12:44 PM
Updated 03/10/2021, 12:50 PM
© Reuters.
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ABBA
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LUCK
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(Repeats for wider readership. No change to text.)
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Global economic outlook has brightened- OECD
* Indonesia and Malaysia shares add about 1% each

By Shruti Sonal
March 10 (Reuters) - Most emerging Asian shares climbed on
Wednesday, taking positive cues from a recovery in U.S. and
Chinese equities as falling bond yields eased concerns about
surging inflation and the outlook for global economic recovery
brightened.
Benchmark indexes for Indonesia .JKSE and Malaysia .KLSE
added about 1% each, while Philippine .PSI and Thai .SETI
shares gained 0.4%.
U.S. stocks rallied overnight, recouping heavy losses from
the previous session as bond yields retreated and investors
scooped up battered technology stocks.
Chinese shares also bounced back from their lows in the
previous session. The country's factory gate prices rose at the
fastest pace since November 2018 in February, raising hopes for
robust growth in the world's second-largest economy this year.
In a further boost to shares, the OECD said on Tuesday that
the global economic outlook has brightened as COVID-19 vaccine
rollouts speed up and the United States launches a new stimulus
package. The U.S. House of Representatives voted on Tuesday to
advance President Joe Biden's $1.9 trillion COVID-19 relief
bill, clearing the way for the measure to be considered on
Wednesday. However, analysts were wary of treating the recovery in
equities as a sign of a bull run in markets.
"There appears to be a degree of concession, rather than
bullish conviction, about the breathtaking surge in Nasdaq,"
said Masayuki Tsunashima, analyst at Mizuho Bank.
They also kept a close eye on U.S. inflation data to be
released later in the day and warned the relief rally fuelled by
easing bond yields could be short-lived if the inflation exceeds
consensus expectations.
"Amid strong expectations for global reflation and faster
U.S. economic recovery, the outlook is likely still skewed
towards rising global rates from here," analysts at DBS Group
wrote in a note.
"Considering the expected magnitude of yield increases in
2021, it would be challenging for most Asian bonds, especially
lower yielding ones, to eke out positive absolute returns."
In foreign exchange, most regional currencies weakened as
the U.S. dollar rose, clawing back some of the losses
sustained overnight.
The Singapore dollar SGD= , Malaysian ringgit MYR= and
Philippine peso PHP= dipped about 0.3% each.
However, the Taiwan dollar TWD=TP , among the best
performing regional currencies so far this year, gained 0.3%.
The currency has gained as the country's exports surged, driven
by global demand for laptops, smartphones and other gadgets to
support the work-from-home trend during the
pandemic. The tech powerhouse's booming exports may lead to impressive
economic growth of about 5% this year, the head of the
statistics office said. Thailand's 10-year government bond yields are down 5
basis points at 1.75%
** Top gainers on the Jakarta stock index .JKSE include
Zebra Nusantara Tbk PT ZBRA.JK , Mahaka Media Tbk PT ABBA.JK ,
Sentral Mitra Informatika Tbk PT LUCK.JK

Asia stock indexes and currencies
at 0414 GMT
COUNTRY FX RIC FX FX YTD % INDEX STOCKS STOCKS
DAILY DAILY YTD %
% %
Japan JPY= -0.30 -5.10 <.N22 0.02 5.80
5>
China S> C>
India INR=IN +0.00 +0.20 <.NSE 0.51 8.53
I>
Indones IDR= +0.07 -2.36 <.JKS 1.04 4.76
ia E>
Malaysi MYR= -0.27 -2.57 <.KLS 0.73 0.58
a E>
Philipp PHP= -0.33 -1.20 <.PSI 0.38 -4.86
ines >
S.Korea C> 1>
Singapo SGD= -0.26 -1.95 <.STI -0.94 8.28
re >
Taiwan TWD=TP +0.25 +0.58 <.TWI 0.48 8.13
I>
Thailan THB=TH -0.07 -2.60 <.SET 0.29 7.29
d I>

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