* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* S. Korea, Taiwan shares down more than 3%
* Philippine cenbank expected to stand pat on rates
* Indian shares set to snap three-day winning streak
By Shriya Ramakrishnan
Aug 20 (Reuters) - The Thai baht weakened on Thursday as the
arrest of anti-government activists added to a growing list of
political concerns while shares in South Korea and Taiwan sank
as the U.S. Federal Reserve signalled it was worried about the
pace of economic recovery.
Stock markets in Seoul .KS11 and Taiwan .TWII , both
export-reliant and highly sensitive to global growth, ended more
than 3% lower as the comments from Fed policymakers, and their
failure to push ahead with steps to control bond market yields,
sent a wave of jitters through financial markets.
The won KRW=KFTC was the worst hit among Asian currencies,
down 0.5% against the greenback, while the Taiwanese dollar
TWD=TP registered a fourth straight session of gains, up 0.4%.
In Thailand, the baht THB=TH slipped as much as 0.7%
during the day before regaining some ground, while shares
.SETI were down around 0.7%.
Thai police on Thursday arrested four anti-government
activists over a July 18 protest that triggered a wave of
student-led demonstrations demanding a new constitution and the
resignation of the military-backed government. The Philippine peso PHP= swung between positive and
negative territory ahead of a central bank rate decision due
later in the day, while Manila shares .PSI traded 0.6% lower.
Bangko Sentral ng Pilipinas (BSP) was widely expected to
take a breather after cutting interest rates four times to a
record low of 2.25%, a Reuters poll showed.
Singapore shares .STI fell more than 1%, pulled down by
losses in index heavyweight Wilmar International WLIL.SI ,
after one of its largest shareholders unveiled plans to cut its
stake in the agribusiness firm. The Indian rupee INR=IN weakened 0.2% and the blue-chip
NSE Nifty 50 index .NSEI was on course to end a three-day
winning streak as the Fed effect and a record daily jump in
coronavirus infections weighed on sentiment. Yields on India's 10-year government bonds IN10YT=RR , one
of the highest in the region after Indonesia, hovered at their
highest level since early June at 6%.
"Much of the bond underperformance can be pinned on an
uncertain fiscal/bond outlook and inflation trend," DBS Bank
analysts said, adding that inflation was on course to stay above
the central bank's 2% to 6% target range in the third quarter.
Financial markets in Malaysia and Indonesia were closed for
holidays.
HIGHLIGHTS:
** Top losers on the Singapore STI .STI include Wilmar
International Ltd WLIL.SI down 9.67% at S$4.39; Hongkong Land
Holdings Ltd HKLD.SI down 3.12% at S$3.73
** Thailand's 10-year government bond yields are up 1 basis
point at 1.33%, while its 3-year benchmark yield is up 1 basis
point at 0.6%
** In the Philippines, top index losers are Metropolitan
Bank and Trust Co MBT.PS down 3.61% at 34.7 peso; BDO Unibank
Inc BDO.PS down 3% at 89.05 peso
Asia stock indexes and
currencies at 0722 GMT
COUNTRY FX RIC FX FX YTD INDEX STOCKS STOCK
DAILY % % DAILY S YTD
% %
Japan JPY= +0.14 +2.51 <.N225 -1.00 -3.28
>
China