🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

EMERGING MARKETS-Asian currencies benefit from weaker dollar after Fed

Published 04/29/2021, 12:59 PM
Updated 04/29/2021, 01:30 PM
© Reuters.
USD/JPY
-
USD/SGD
-
JP225
-
USD/IDR
-
USD/PHP
-
NSEI
-
BJFN
-
TISC
-
JKSE
-
KS11
-
TWII
-
SSEC
-
SETI
-
PSI
-
BLOOM
-
STI
-
ACG
-

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Weaker dollar pushed Asian currencies higher
* Thai stocks hit three weak high, baht firms
* Philippine stocks suffer after restrictions extended

(Adds Japan performance in table)
By Harish Sridharan
April 29 (Reuters) - Asian currencies strengthened on
Thursday, benefiting from a slide in the U.S dollar to a near
nine-week low after the U.S Federal Reserve maintained a dovish
outlook and quashed speculation on early bond tapering.
U.S Treasury yields fell overnight, pulling the dollar along
with it, after Fed Chair Jerome Powell said "it is not time yet"
to begin discussing any change in policy, implying a
continuation of the central bank's accommodative policy
settings. "Asian currencies are seeing relief gains on the back of the
Fed's sanguine outlook on inflation, which implies that U.S.
monetary policy is likely to remain accommodative and supportive
of inflows into Asia," said Chang Wei-Liang, Macro Strategist
(FX and Credit) at DBS Bank.
"That said, the Fed's dovish stance will be increasingly
challenged by improving U.S. data, with a robust U.S. recovery
taking shape now. As such, Asian currency gains could remain
restrained on expectations of an eventual Fed taper later this
year," he added.
Though major indexes in Wall Street closed lower overnight,
stocks in Asia responded positively to Fed's dovish stance, with
most markets trading in positive territory.
Indian shares .NSEI jumped as much as 1.2% to mark a more
than six-week high, as investors turn their attention to a slew
of blue-chip earnings.
The COVID-19 pandemic continues to rage on in the nation,
but many countries have now pledged to help with critical
supplies and vaccines.
Equities in South Korea .KS11 gained 0.2%, boosted by
strong quarterly earnings. The won KRW=KFTC strengthened 0.45%
and was at its strongest in more than two months. .KS
Indonesian stocks .JKSE saw gains, while Taiwan .TWII
gained as much as 0.8% to notch yet another record high.
Markets in Malaysia were closed on account of a local
holiday.
Stocks in Bangkok .SETI extended gains from the previous
day and scaled a more than three-week peak, even as the country
continues to face the brunt of a third wave of coronavirus
infections. The baht THB=TH gained 0.35%.
Thailand's industry ministry said on Wednesday that the
country's manufacturing production index rose in March for the
first time in 23 months, benefiting from improved global demand
and a low base effect high.
However, some analysts were sceptical about the performance
of Thai markets.
"A huge cloud of uncertainty over the COVID-19 situation
especially in the run-up to this long holiday could keep a lid
on the market's upside though yesterday's rebound helps brighten
the short-term market outlook" analysts at Philip Securities
wrote in a note.
Stocks in Manila .PSI suffered after President Rodrigo
Duterte extended restrictions on movement and gathering in the
capital and nearby provinces for two more weeks, as the
Philippines battles one of the worst coronavirus outbreaks in
the region. In the Philippines, top index loser was Bloomberry
Resorts Corp BLOOM.PS , down 2.84%
** Autocorp Holding PCL ACG.BK was up 12.8% and among the
top gainers on the Thailand's SETI .SETI
** The biggest gainers in the NSE index were Tata Steel Ltd
TISC.NS gaining 1.69% and Bajaj Finance Ltd BJFN.NS , up 1.4%

Asia stock indexes and currencies at
0359 GMT
COUNTRY FX RIC FX FX INDEX STOCKS STOCKS
DAILY YTD % DAILY YTD %
% %
Japan JPY= -0.03 -4.95 .N225 0.21 5.87
China CNY=CFXS +0.11 +0.87 .SSEC 0.17 -0.29
India INR=IN +0.00 -1.73 .NSEI 0.77 7.13
Indonesia IDR= +0.21 -2.94 .JKSE 0.52 0.44
Philippines PHP= +0.07 -0.82 .PSI -0.73 -10.06
S.Korea KRW=KFTC +0.45 -1.97 .KS11 0.15 10.88
Singapore SGD= +0.02 -0.29 .STI 0.06 13.28
Taiwan TWD=TP +0.22 +2.17 .TWII 0.22 19.51
Thailand THB=TH +0.35 -4.10 .SETI 0.78 9.64




Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.