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EMERGING MARKETS-Asian markets falter, politics hit ringgit

Published 09/24/2020, 01:19 PM
Updated 09/24/2020, 01:20 PM
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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JSH
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JARD
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NSEI
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JKSE
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KLSE
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ID10YT=RR
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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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SKBM
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STI
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NFCX
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* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I
* Industrials drag Singapore stocks
* Thai baht hits one-month low

By Anushka Trivedi
Sept 24 (Reuters) - Malaysia's ringgit fell for a fourth
session on Thursday as investors moved to price in the latest
bout of political uncertainty following opposition leader Anwar
Ibrahim's claim that he had a majority to oust the current
government.
In Asian stock markets doubts about how the world economy
will stagger back to recovery spurred a 1.5% fall in Chinese
shares .SSEC , unsettling other markets in the region, with
Indonesia .JKSE , South Korea .KS11 and Taiwan .TWII stocks
all down 1% to 2%.
The dip in confidence turned investors away from riskier
assets and the won KRW=KFTC and the Thai baht THB=TH both
eased by around half a percent against the dollar.
The ringgit MYR= weakened by 0.26% bringing its decline
for the week so far to 1.2%, its worst performance since April,
though it has fared better than a number of its peers in this
year's coronavirus turmoil.
The power struggle in Malaysia, and possibility of an early
election raised fears of a delay to any further stimulus package
to bolster the economy during the coronavirus crisis.
Prime Minister Muhyiddin Yassin, whose seven-month old
coalition has survived with a wafer-thin majority, unveiled an
additional economic stimulus package worth 10 billion ringgit
($2.40 billion) on Wednesday. "Political uncertainty is a near-term risk for
implementation of those (stimulus) policies or projects and
hence the speed of economic recovery," analysts at China based
trading firm CGS-CIMB said in a note.
Thailand's baht was also weaker for a fourth day, hitting a
one-month low after an uneventful central bank meeting where
rates were held steady and no stimulus was announced for a
country in dire need for fiscal support. The bank slightly upgraded its 2020 gross domestic product
(GDP) target, but analysts said a recovery in Thai trade and
tourism seemed a long way off in the COVID-19 pandemic.
"In coming months the Bank of Thailand will have to deliver
more support to the economy, and could potentially move towards
quantitative easing," Sid Mathur, Head of EM Research APAC at
BNP Paribas said.
Singaporean shares .STI tumbled, with export-oriented
stocks leading losses.

HIGHLIGHTS
** Indonesian 10-year benchmark yields ID10YT=RR are up
2.4 basis points at 6.929%
** Singapore-listed Jardine Matheson Holdings JARD.SI and
Jardine Strategic Holdings JSH.SI among top drags as they fall
over 3%
** Top losers on the Jakarta stock index .JKSE include NFC
Indonesia Tbk PT NFCX.JK down 6.94% and Sekar Bumi Tbk PT
SKBM.JK down 6.92%

Asia stock indexes and currencies
at 0359 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS STOCKS
DAILY % YTD %
Japan JPY= -0.05 +3.03 .N225 -0.65 -1.95
China CNY=CFXS -0.12 +2.14 .SSEC -1.46 5.96
India INR=IN +0.00 -2.98 .NSEI -1.09 -9.51
Indonesia IDR= -0.24 -6.31 .JKSE -1.67 -23.23
Malaysia MYR= -0.26 -1.78 .KLSE 0.31 -5.52
Philippine PHP= +0.19 +4.45 .PSI -0.53 -25.00
s
S.Korea KRW=KFTC -0.50 -1.19 .KS11 -2.01 4.04
Singapore SGD= -0.10 -2.18 .STI -1.15 -23.90
Taiwan TWD=TP +0.04 +3.09 .TWII -2.46 2.31
Thailand THB=TH -0.38 -5.32 .SETI -0.69 -20.55



($1 = 4.1640 ringgit)

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