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EMERGING MARKETS-Asian stocks drubbed after Wall St rout, U.S. jobs data awaited

Published 09/04/2020, 03:47 PM
Updated 09/04/2020, 03:50 PM
© Reuters.
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MAPL
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* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Indonesia stocks hit three-week low
* Indian rupee set for first weekly decline in three
* Philippine stocks outshine

By Shashwat Awasthi
Sept 4 (Reuters) - Emerging Asian stock markets were pummelled on Friday, with many plumbing
multi-week lows, after a steep sell-off on Wall Street unnerved investors ahead of U.S. jobs
data later in the session.
Singapore shares .STI hit their lowest in more than a month, while bourses in South Korea
.KS11 and Taiwan .TWII - home to heavyweight tech stocks - shed roughly 1% each.
U.S. indexes marked their biggest one-day falls since June on Thursday on the back of
furious profit-taking, while analysts worry a disappointing non-farm payrolls report could
deepen the selling.
"Unlike the private ADP employment miss earlier in the week, the reaction is not likely to
be muted if we find a disappointment here as well. Asian markets may stay under pressure into
next week if the sell-off on Wall Street continues," said Jingyi Pan, a market strategist at IG.
Analysts at OCBC Bank suggested the jobs numbers could also provide hints on how much more
dovish the U.S. Federal Reserve could be at its meeting later this month.
Stocks in Indonesia .JKSE slid more than 1%. The market has been plagued this week by
concerns over the central bank's independence as a proposal to overhaul Bank Indonesia is seen
as leading to more political influence on its monetary policy. Worries over economic slowdown have also weighed on stocks and the rupiah IDR= , while a
record rise in coronavirus cases prompted experts to urge the government to revamp its strategy
to tackle the pandemic. Philippine shares .PSI outperformed with a 0.2% gain, as inflation easing to the slowest
pace in three months in August raised hopes of more stimulus measures from the central bank.
Ruben Asuncion, chief economist at Union Bank of the Philippines, said "the seemingly
declining level" of COVID-19 infections in the last three days also supported Manila stocks.
Thailand markets were closed for a holiday.

HIGHLIGHTS

** Singapore's 10-year benchmark yield is down 3 basis points at 0.94%
** Top losers on the Singapore STI include Venture Corporation VENM.SI down 4.66%, Keppel
Corporation KPLM.SI down 2.9% and Mapletree Logistics Trust MAPL.SI down 2.87%
** In the Philippines, top index gainers are Ayala Land ALI.PS up 4.83%, Robinsons Retail
RRHI.PS up 3.02% and San Miguel Corp SMC.PS up 2.83%


Asia stock indexes and currencies at 0709 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD %
Japan JPY= +0.07 +2.37 .N225 -1.11 -1.91
China CNY=CFXS +0.06 +1.76 .SSEC -0.79 10.11
India INR=IN +0.22 -2.63 .NSEI -1.07 -6.29
Indonesia IDR= +0.07 -5.90 .JKSE -1.35 -17.31
Malaysia MYR= -0.05 -1.40 .KLSE -0.40 -5.00
Philippines PHP= +0.09 +4.22 .PSI 0.21 -25.98
S.Korea KRW=KFTC -0.11 -2.79 .KS11 -1.15 7.76
Singapore SGD= -0.01 -1.49 .STI -1.22 -22.40
Taiwan TWD=TP +0.74 +2.70 .TWII -0.94 5.34
Thailand THB=TH 0.00 -4.81 .SETI 0.00 -16.96


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