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EMERGING MARKETS-Asian currencies cheered by dollar woes, Singapore shares falter

Published 07/22/2020, 01:01 PM
Updated 07/22/2020, 01:10 PM
© Reuters.
USD/JPY
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USD/SGD
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USD/THB
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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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SGXL
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STEG
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TBEV
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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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PSI
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STI
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ASIA
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MAPI
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APEX
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STGT
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* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Taiwan dollar set for best day since April 30
* Singapore stocks hit by dividend worries

By Shashwat Awasthi and Pranav A K
July 22 (Reuters) - Emerging Asian currencies advanced on
Wednesday as unease around the next round of economic stimulus
in the United States shook the U.S. dollar, while concerns about
rising coronavirus cases and imminent cuts to corporate
dividends dented Singapore stocks.
The Taiwanese dollar TWD=TP and South Korea's won
KRW=KFTC each rose for the fourth straight session, with
Taiwan's currency on track for its best day in almost three
months while the Indonesian rupiah IDR= and Thai baht THB=
also posted modest gains.
Investors' appetite for risk has improved this week on news
of progress in developing vaccines for the novel coronavirus,
reducing the U.S. dollar's safe-harbour appeal.
Republicans and Democrats are also struggling to come to
terms over more fiscal support for the economy, contrasting with
the historic deal done in Europe this week.
"The U.S. fiscal negotiations would not be inspiring anyone
to hold capital in the U.S. and while most think we will see a
resolution around Phase 4 stimulus, we find little progress
being made at this juncture," foreign exchange broker
Pepperstone's head of research Chris Weston said.
Stock markets across Southeast Asia were mixed, with
Singapore .STI the main standout, down almost 1% as property
firms led losses, following a cut in dividend by real estate
investment trust Mapletree Industrial Trust MAPI.SI .
"There are fears that others will follow. The market expects
more difficult dividend cuts across sectors," said Jeffrey
Halley, an analyst at trading platform OANDA.
The city state also reported almost 400 new coronavirus
cases on Tuesday, its highest daily count in more than a month.
Data from Malaysia showed the economy remained in
deflationary territory for the fourth month in a row in June,
with the consumer price index falling 1.9%, in line with
estimates. The ringgit MYR= firmed 0.2% while Kuala Lampur stocks
.KLSE edged 0.1% lower.
"We see inflation staying deep in negative territory during
the rest of the year and the central bank cutting its policy
rate by at least one more 25 basis points in this cycle," ING
analysts said in a note.

HIGHLIGHTS:

** Indonesian 3-year benchmark yields are down 17.5 basis
points at 5.748%
** Top losers on the Singapore STI .STI include Thai
Beverage PCL TBEV.SI down 2.27%, Singapore Exchange SGXL.SI
down 1.54% and Singapore Technologies Engineering STEG.SI down
1.51%
** Top losers on Thailand's SETI .SETI include Apex
Development PCL APEX.BK down 11.11%, Asia Hotel PCL ASIA.BK
down 7.41% and Sri Trang Gloves (Thailand) PCL STGT.BK down
6.33%


Asia stock indexes and currencies at 0416 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD %
Japan JPY= -0.07 +1.66 .N225 -0.49 -3.74
China CNY=CFXS +0.12 -0.13 .SSEC 1.20 10.19
India INR=IN -0.06 -4.28 .NSEI -0.12 -8.38
Indonesia IDR= +0.20 -5.26 .JKSE 0.31 -18.56
Malaysia MYR= +0.21 -3.81 .KLSE -0.13 0.32
Philippines PHP= -0.02 +2.67 .PSI 0.11 -21.40
S.Korea KRW=KFTC +0.37 -3.10 .KS11 0.01 1.43
Singapore SGD= -0.01 -2.81 .STI -0.85 -19.10
Taiwan TWD=TP +0.49 +2.37 .TWII 0.49 3.84
Thailand THB=TH +0.16 -5.14 .SETI -0.26 -13.06

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