* U.S. 10-year bond yields climb to 1.7442%
* Malaysian bonds to stay in FTSE Russell bond index
* China bonds to be included in bond index from this year
March 30 (Reuters) - Asia's emerging currencies buckled
under a firmer dollar on Tuesday after U.S. bond yields topped
1.7% again, with the Thai baht leading losses, falling nearly a
fifth of a percent.
Benchmark 10-year U.S. Treasuries US10YT=RR climbed to
1.7442%, bolstering the greenback, which also garnered support
from worries of a hedge fund default that roiled global banking
stocks on Monday.
"There are still a number of investors who are concerned
about a further spike in UST," Morgan Stanley analysts said in a
note, adding that U.S. economic data surprises could push yields
higher. "Hence, these investors continue to position
defensively."
Stocks in Jakarta .JKSE led declines in Asia, falling more
than 1%. Yields on its benchmark 10-year bonds ID10YT=RR rose
8.4 basis points to 6.84%, with the rupiah IDR= slightly
lower. Bond yields fall when prices rise.
The yield on 10-year Malaysian bonds MY10YT=RR fell 4.3
basis points to 3.292%, after FTSE Russell removed the country
from its watchlist and officially retained it in its flagship
government bond index.
"This is a much welcome relief, and will allow investors to
re-focus on other external drivers," HSBC said.
The ringgit MYR= , however, dipped 0.1% and stocks .KLSE
were down a third of a percent.
FTSE Russell also confirmed that Chinese sovereign bonds
will be included in its bond index starting this year, setting
the stage for billions in inflows. HSBC said that with roughly $2.5 trillion tracking the FTSE
World Government Bond Index, some $130 billion in inflows could
be expected, given China's eventual 5.25% weighting.
In Thailand, shares .SETI rose 0.4% but gains were capped
by state-owned listed oil and gas firm PTT Pcl PTT.BK .
A key OPEC+ meeting this week will decide whether output
curbs should remain in place to support prices. O/R
Indian markets are set to reopen on Tuesday following a
market holiday. COVID-19 cases are rising fast in the world's
second most populous nation.
On the other end, South Korean shares .KS11 rebounded as
institutional investors turned net buyers, while in Singapore
.STI shares rose 0.8% to their highest since February last
year.
HIGHLIGHTS:
** Malaysia's AirAsia posts record quarterly loss; shares
fall ** Philippines raises $500 mln via discount Samurai bond -
IFR ** Top losers on the Jakarta stock index include Bank
Mayapada Internasional Tbk PT MAYA.JK and Pollux Properti
Indonesia Tbk PT POLL.JK
Asia stock indexes and currencies at 0338 GMT
COUNTRY FX RIC FX FX INDEX STOCKS STOCKS
DAILY % YTD % DAILY % YTD %
Japan JPY= -0.17 -6.12 .N225 -0.05 7.01
China CNY=CFXS -0.03 -0.65 .SSEC 0.57 -0.52
India INR=IN +0.00 +0.77 .NSEI 0.00 3.76
Indonesia IDR= -0.07 -2.84 .JKSE -1.28 1.82
Malaysia MYR= -0.12 -2.99 .KLSE -0.31 -1.28
Philippines PHP= -0.02 -0.89 .PSI -0.96 -8.34
S.Korea KRW=KFTC -0.13 -4.15 .KS11 1.22 6.95
Singapore SGD= +0.01 -1.98 .STI 0.77 12.53
Taiwan TWD=TP +0.11 -0.13 .TWII -0.03 11.80
Thailand THB=TH -0.16 -4.01 .SETI 0.35 9.67