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EMERGING MARKETS-Asian currencies advance as dollar retreats; S. Korea shares rebound

Published 01/19/2021, 01:56 PM
Updated 01/19/2021, 02:00 PM
© Reuters.
USD/JPY
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USD/SGD
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JP225
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USD/IDR
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USD/MYR
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USD/PHP
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HKLD
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NSEI
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JKSE
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KLSE
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KS11
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TWII
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SSEC
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SETI
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005380
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PSI
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STI
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TFI
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KWI
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KEPE
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* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Asian stocks https://tmsnrt.rs/3f2vwbA
* Taiwan's dollar leads Asia FX gains
* S. Korean shares climb nearly 3%
* Malaysian ringgit in tight range ahead of c.bank meeting

By Shriya Ramakrishnan
Jan 19 (Reuters) - Asia's emerging currencies strengthened
on Tuesday as the dollar retreated from a near one-month high,
while the prospect of more stimulus in South Korea helped its
stock market to rebound, driven by gains in auto shares.
Traders awaited U.S. Treasury Secretary nominee Janet
Yellen's Senate testimony later in the day for clues on the
policies of the incoming Joe Biden government and its
implications for the U.S. dollar. USD/
Yellen is expected to affirm the United States' commitment
to market-set currency rates when she testifies on Capitol Hill,
the Wall Street Journal reported. "Ahead of Janet Yellen's confirmation as U.S. Treasury
Secretary, her position on allowing the currency to be
determined by market forces has led to speculation around a high
comfort level with a weaker dollar," Mizuho Bank analysts said.
Asian currencies have struggled to gain ground this month as
Biden's plans for a $1.9 trillion stimulus package has fuelled a
rise in U.S. treasury yields and in turn lifted the dollar.
The Thai baht THB=TH , South Korea's won KRW=KFTC and the
Singapore dollar SGD= advanced between 0.1% and 0.3% against
the greenback on Tuesday, while the Malaysian ringgit MYR=MY
traded flat as investors braced for a possible interest rate cut
by Malaysia's central bank on Wednesday. Stocks in Kuala Lumpur .KLSE however firmed 0.2% and were
on course to end a three-day losing streak, after Prime Minister
Muhyiddin Yassin unveiled plans to introduce $3.7 billion worth
of additional stimulus measures to support Malaysia's
pandemic-hit economy. South Korea's benchmark KOSPI .KS11 jumped about 3% after
suffering its worst fall in nearly three months in the previous
session, fuelled by gains in shares of automaker Hyundai Motor
005380.KS and its affiliates.
Adding to the positive mood, South Korea's vice finance
minister also said additional measures will soon be unveiled to
revitalise consumption. Taiwan's stocks .TWII climbed 1.6% and the local dollar
TWD=TP once again led regional gains, ahead of the release of
export orders data on Wednesday, which is likely to show orders
climbed for a 10th straight month, according to a Reuters poll.
Both South Korea and Taiwan, which have a large presence in
the semiconductor industry, have seen a solid rebound in exports
as a global shift to work-from-home during the pandemic boosted
demand for chips used in electronic products.
"There is a big shortage of semiconductors relative to
demand, and we haven't even really seen the synchronous global
recovery which will put greater emphasis on demand... there is
certainly still some mileage in the tech story which could keep
going," said Robert Carnell, Regional Head of Research for
Asia-Pacific at ING.

HIGHLIGHTS:
** Indonesian 3-year benchmark yields are up 3.69 basis
points at 5.232%
** Top gainers on the Thailand's SETI .SETI include King
Wai Group Thailand PCL KWG.BK up 14.81% at 1.55 baht, Thai
Film Industries PCL TFI.BK up ​14.29% at 0.16 baht
** Top gainers on the Singapore STI .STI include Hongkong
Land Holdings Ltd HKLD.SI up 2.86% at S$4.68, Keppel DC REIT
KEPE.SI up ​1.75% at S$2.91

Asia stock indexes and
currencies at 0457 GMT
COUNTRY FX RIC FX FX INDEX STOCKS STOCKS
DAILY % YTD % DAILY YTD %
%
Japan JPY= -0.29 -0.72 .N225 1.39 4.34
China CNY=CFXS +0.09 +0.64 .SSEC 0.00 3.54
India INR=IN +0.18 -0.11 .NSEI 0.91 3.07
Indonesi IDR= +0.00 -0.14 .JKSE -0.59 6.24
a
Malaysia MYR= +0.02 -0.72 .KLSE 0.17 -0.92
Philippi PHP= -0.03 -0.11 .PSI -0.35 0.54
nes
S.Korea KRW=KFTC +0.22 -1.39 .KS11 2.87 7.90
Singapor SGD= +0.14 -0.61 .STI 0.49 5.67
e
Taiwan TWD=TP +1.78 +1.75 .TWII 1.64 7.71
Thailand THB=TH +0.33 -0.20 .SETI 1.01 5.25




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