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EMERGING MARKETS-Asian stocks ease on virus curb woes as cases surge, won drops 1%

Published 05/03/2021, 03:27 PM
Updated 05/03/2021, 03:30 PM
© Reuters.
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* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
* Singapore shares see worst day in over two-months
* Taiwan's strong economic growth faces chip shortage risk - ING
* China, Japan & Thailand markets closed for holiday

By Anushka Trivedi
May 3(Reuters) - Asian stock markets fell on Monday, as rising coronavirus
cases in the region raised concerns over more curbs and economic pain, while
renewed tensions with North Korea knocked down South Korea's won by 1%.
In a low-volume trading session as China and Japan's bourses were closed for
a holiday, Indonesia .JKSE , Singapore .STI , Malaysia .KLSE and India
.NSEI shares fell between 0.6% and 1.4%.
After identifying a cluster of COVID-19 cases over the weekend, Singapore
tightened social distancing controls and warned of further action that threatens
to derail a nascent economic recovery in the city-state. Singapore's benchmark stock index .STI saw its worst session since Feb.
26, with manufacturing giant Sembcorp Industries SCIL.SI losing 3% after its
sister company Sembcorp Marine SCMN.SI warned of losses continuing in fiscal
2021 due to labour shortage. "Asia-Pacific markets look set to kick off the week on the backfoot," said
DailyFX strategist Margaret Yang.
The worsening pandemic situation is making investors assess the risk of
stricter border controls and delays to economies reopening, she added.
Malaysian shares also suffered from the reinstatment of curbs https://www.straitstimes.com/asia/se-asia/malaysia-to-impose-new-movement-restrictions-with-bazaars-schools-to-close-sources
in some parts of the country, while the pandemic-ravaged India reported more
than 300,000 new coronavirus cases for 12th straight day. Taiwan's benchmark .TWII slid 2% despite preliminary data showing economic
growth in the first-quarter was faster than expected. ING's Greater China chief economist Iris Pang warned that the island's
extreme reliance on exports, mainly semiconductors, will arrest its growth in
the coming quarters, as it grapples with water shortages amid a global chip
scarcity.
Among currencies, the won KRW=KFTC eased after Pyongyang lashed out at
U.S. and South Korea over "hostile" policies and later criticized its neighbour
for failing to stop defector activists from launching anti-North Korea leaflets.

Last year, North Korea blew up an inter-Korean liaison office in Kaesong,
North Korea, following a campaign of criticism over the leaflet launches.
Thai financial markets .SETI THB=TH were closed for a holiday.

HIGHLIGHTS
** Indonesian 10-year benchmark yields are up 0.5 basis points at 6.481%
** Wilmar International WLIL.SI and Singapore Airlines SIAL.SI also
among top losers on Singapore's Straits Times Index .STI
** Won marks biggest intraday percentage drop in more than two-months
**

Asia stock indexes and currencies at 0626 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS STOCKS
DAILY YTD %
%
India INR=IN -0.18 -1.52 .NSEI -0.62 3.99
Indonesia IDR= -0.17 -2.94 .JKSE -0.83 -0.55
Malaysia MYR= -0.22 -2.00 .KLSE -0.51 -2.07
Philippines PHP= +0.25 -0.21 .PSI -0.02 -10.79
S.Korea KRW=KFTC -0.86 -3.18 .KS11 -0.63 8.85
Singapore SGD= -0.24 -0.93 .STI -1.31 11.69
Taiwan TWD=TP -0.12 +1.78 .TWII -1.96 16.90

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