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EMERGING MARKETS-Asian stocks jump on upbeat factory data, vaccine news

Published 12/01/2020, 03:34 PM
Updated 12/01/2020, 03:40 PM
© Reuters.
USD/JPY
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USD/SGD
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USD/IDR
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USD/MYR
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USD/PHP
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JKSE
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KLSE
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TENA
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PCGB
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AXIA
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PSI
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ICT
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MER
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GTCAP
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MRNA
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* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I
* Malaysia, Philippine shares see best day since Nov. 10
* Thai shares jump more than 1%

By Shashwat Awasthi
Dec 1 (Reuters) - Philippines and Malaysia spearheaded a
rally in emerging Asian equities on Tuesday, as upbeat factory
activity across the region and optimism around coronavirus
vaccines helped stocks make a roaring start to December.
Shares in Kuala Lampur .KLSE were on track for their best
day in three weeks, while those in the Philippines .PSI soared
more than 3% after profit-taking plunged equities into the red
in the previous session.
The gains rekindled November's spectacular rally, which was
broadly supported by easing uncertainty after the U.S. election
and hopes of an effective coronavirus treatment.
On Tuesday, data showed activity in China's factory sector
accelerated at the fastest pace in a decade in November, while
factory activity also grew in Taiwan, Indonesia and the
Philippines. "I think the market recognised the better print of the
Philippines Purchasing Managers' Index (of 49.9)," Ruben Carlo
O. Asuncion, chief economist at The Union Bank of the
Philippines, said of the gains in the country's stocks.
"It was better than the previous month. Although it is not
on or above 50, it is still better and the market sees the
improvement."
In vaccine updates, U.S. pharmaceutical company Moderna
MRNA.O said on Monday it had applied for U.S. emergency
authorization for its COVID-19 vaccine and would also seek
European approval for the treatment. "A potential vaccine is definitely a game-changer," said
Frank Benmirza, head of Asia equity strategy at Societe
Generale, adding that news on timing, production and
distribution would be taken positively.
Shares in Indonesia .JKSE , which has seen a record daily
spike in coronavirus infections since last week, bounced back
from Monday's steep losses to surge as much as 2%.
The country's annual inflation rate accelerated to a
five-month high in November, though core inflation eased.
The data suggests domestic demand has remained weak in Q4,
ANZ Research analysts said in a note.
"Weak growth and inflation dynamics back the case for
continued policy accommodation, but we expect quantitative
easing to be Bank Indonesia's primary tool of support," they
said.
Investors also took stock of news that an Indonesian
parliamentary panel would likely drop a plan to revise the
central bank's law to expand its mandate. The Thai baht THB=TH edged higher ahead of the central
bank's briefing next week to unveil additional measures to
contain the currency, which has firmed more than 4.5% since
October. Moves among other currencies were tepid, though the
tech-reliant Taiwan's dollar TWD=TP stood out with a more than
1% gain.

HIGHLIGHTS:

** Thailand's three-year benchmark yield is down 1 basis
points at 0.61%
** Top gainers on FTSE Bursa Malaysia Kl Index include
PETRONAS Chemicals Group PCGB.KL up 9.03%, Tenaga Nasional
TENA.KL up 7.74% and Axiata Group AXIA.KL up​ 6.48%
** In the Philippines, top index gainers are GT Capital
GTCAP.PS up 6.9%, Manila Electric MER.PS up 6.53% and
International Container Terminal Services ICT.PS up​ 6.16%


Asia stock indexes and currencies
at 0654 GMT
COUNTRY FX RIC FX FX YTD INDE STOCK STOC
DAILY % X S KS
% DAILY YTD
% %
Japan JPY= -0.07 +4.09 <.N2 1.34 13.2
25> 3
China S> EC> 4
India INR=IN +0.66 -2.89 <.NS 0.83 7.47
EI>
Indones IDR= -0.07 -1.56 <.JK 1.68 -9.4
ia SE> 1
Malaysi MYR= -0.10 +0.29 <.KL 2.53 0.85
a SE>
Philipp PHP= +0.15 +5.41 <.PS 3.21 -10.
ines I> 31
S.Korea C> 11> 7
Singapo SGD= +0.18 +0.40 <.ST 0.26 -12.
re I> 71
Taiwan TWD=TP +1.08 +5.58 <.TW 1.19 15.7
II> 4
Thailan THB=TH +0.10 -1.12 <.SE 1.53 -9.4
d TI> 9

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