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

EMERGING MARKETS-Asian FX, stocks upbeat in new year on vaccine-led recovery hopes

Published 01/04/2021, 03:59 PM
Updated 01/04/2021, 04:00 PM
© Reuters.
USD/JPY
-
USD/SGD
-
JP225
-
USD/IDR
-
USD/MYR
-
USD/PHP
-
NSEI
-
JKSE
-
KLSE
-
ID10YT=RR
-
KS11
-
TWII
-
SSEC
-
TPGC
-
HTHB
-
SUPM
-
SETI
-
PSI
-
BLOOM
-
STI
-
SMC
-
MIAPJ0000PUS
-
DXY
-

* Indonesian rupiah at over 6-mth high
* Chinese yuan jumps 1%
* Glove makers drag Malaysia shares
* Thailand reports record rise in coronavirus cases

By Anushka Trivedi
Jan 4 (Reuters) - Currencies of emerging Asian markets began
the new year on a firm note, while most stock markets also rose
on Monday as investors put their faith in coronavirus vaccines
to spur economic recovery.
A flurry of robust manufacturing data across the region that
pointed to a stabilisation in economic activity also fuelled
risk sentiment, helping the MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS hit an
all-time peak. The greenback .DXY fell during the Asian trading session,
buoying the Taiwanese dollar TWD=TP 1.5%, while the Malaysian
ringgit MYR=MY and the South Korean won KRW=KFTC advanced
0.6% and 0.3%, respectively.
Regional markets also took heart from the Chinese yuan
CNY=CFXS surging 1% to smash past the key 6.5 per dollar mark,
with the currency's gains expected to accelerate further.
CNY/
"The weaker U.S. dollar is set to be a prolonged theme in
2021," said Han Tan, market analyst at FXTM, adding that
emerging-market currencies would stay supported in that case,
with optimism over vaccine rollouts adding to gains.
Meanwhile, the rupiah IDR= firmed 1.3% to a more than
six-month high, where as Indonesian 10-year benchmark yields
ID10YT=RR were down about 17.30 basis points at 5.925%. Yields
fall when prices rise.
After concerns over the central bank's autonomy in Jakarta,
positive vaccine developments toward the end of 2020 helped the
rupiah recoup most of its losses as investors were lured by
Indonesia's high-yielding debt amid a weak dollar.
"The rupiah may continue its outperformance... the global
hunt for yields should drive more inflows into its bond markets
which would be a major supportive element for the Indonesian
currency," Tan added.
A broadly optimistic tone and a subdued dollar also lifted
regional equities, with South Korea's KOSPI .KS11 touching a
record high, meanwhile Indonesia .JKSE , Philippines .PSI and
Taiwan .TWII shares all firmed around 1%.
However, the heavyweight glove makers that had benefited
during the early months of the pandemic dragged the Malaysian
bourse .KLSE and Thai shares .SETI slipped 0.4% as the
government mulled more restrictions amid a record rise in
coronavirus infections. HIGHLIGHTS

** The Singapore dollar SGD= notches a near 3-year high
after Q4 GDP contracts slightly less than expected
** Top losers on Malaysia Index .KLSE are glove makers
Hartalega Holdings Bhd HTHB.KL down 13.7%, Top Glove Corp
TPGC.KL down 10.5% & Supermax Corp SUPM.KL down 6.7%
** In the Philippines, top index gainers are San Miguel Corp
SMC.PS up 4.6% and Bloomberry Resorts Corp BLOOM.PS up 2.8%

Asia stock indexes and currencies
at 0556 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD %
Japan JPY= +0.18 +0.22 .N225 -0.85 -0.85
China CNY=CFXS +0.99 +0.99 .SSEC 0.66 0.66
India INR=IN +0.22 +0.14 .NSEI -0.11 0.15
Indonesia IDR= +1.26 +1.26 .JKSE 1.00 1.00
Malaysia MYR= +0.63 +0.63 .KLSE -1.63 -1.63
Philippines PHP= +0.08 +0.08 .PSI 0.81 0.81
S.Korea KRW=KFTC +0.31 +0.30 .KS11 2.37 2.37
Singapore SGD= +0.33 +0.27 .STI 0.17 0.17
Taiwan TWD=TP +1.49 +1.40 .TWII 1.15 1.15
Thailand THB=TH +0.13 +0.20 .SETI -0.37 -0.37

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.