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EMERGING MARKETS-Biden election win powers Asian stocks, currencies

Published 11/09/2020, 03:46 PM
Updated 11/09/2020, 03:50 PM
USD/JPY
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JP225
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NSEI
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JKSE
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ID10YT=RR
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* China, South Korea, Singapore, Thai stocks climb over 1%
* Yuan hits 28-month high after Biden wins U.S. election
* Indonesia 10-year bond yields at more than 33-month low
* Turkey's lira surges after finmin, c.bank changes

Nov 9 (Reuters) - China, South Korea and Thailand led Asia's
trade-reliant stocks and currencies higher on Monday, after Joe
Biden clinched the U.S. presidency, boosting risk appetite and
hopes of friendlier policy towards the region and Beijing.
The U.S. dollar fell to a 10-week low after enough states
were called for Biden over the weekend following days of
counting, helping South Korea's won KRW=KFTC scale a 21-month
high and the Singaporean dollar SGD= touch its strongest level
since the start of the year. The tighter-than-expected election, which may leave
Republicans in control of the Senate, appears to have doused
some hopes for a large U.S. fiscal package, potentially putting
the emphasis back on monetary stimulus that will keep U.S. bond
yields low and spur more investment in higher-yielding emerging
markets.
While Biden's line on China is yet to be tested, it also
leaves the door open to less combative relations with the
region's biggest economy.
China's yuan CNY=CFXS rose as much as 0.7% to hit a
28-month peak, while Indonesia's rupiah IDR= , whose high
interest rates make it one of the region's most popular bond
markets for foreign investors, gained nearly 1%.
"A Biden administration is seen as likely to take a less
directly confrontational approach towards China," said Khoon
Goh, head of Asia Research for ANZ.
"The positive risk sentiment in markets should start to see
portfolio inflows flooding back into Asia, which is supportive
for the region's asset markets."
Yields on Indonesia's 10-year benchmark bonds ID10YT=RR
fell 9.7 basis points to 6.288%, their lowest in almost three
years.
Thai shares .SETI jumped 2.5% to their highest in seven
weeks, while Singapore .STI hovered around July highs. In
Seoul .KS11 , stocks jumped to their highest levels in more
than two years.
Shanghai .SSEc climbed 1.5% as China's exports grew at the
fastest pace in 19 months in October with imports also rising,
providing further indications of a robust recovery from the
COVID-19 crisis. Elsewhere in global emerging markets, the Turkish lira
TRYTOM=D3 jumped over 2% after Finance Minister Berat Albayrak
said he would resign for health reasons, the second surprise
exit of a top economic policymaker in as many days, setting the
stage for a sharp rise in interest rates. In Asia, stocks in Kuala Lumpur .KLSE dipped after
Malaysia extended a partial lockdown of the capital until early
December and ordered more states to enter a four-week lockdown
as coronavirus infections hit new highs. ** Indonesian 3-year benchmark yields fell 19.8 basis points
to 4.89%
** Sime Darby Bhd SIME.KL led loses on Malaysia's
benchmark index, with Genting Malaysia Bhd GENM.KL the
second-biggest loser
** China October exports surge, imports rise
Asia stock indexes and currencies at 0656 GMT
COUNTRY FX FX FX INDEX STOCKS STOCKS
RIC DAILY % YTD % DAILY % YTD %
Japan JPY= -0.16 +4.94 .N225 2.12 5.00
China CNY=CFXS +0.40 +5.80 .SSEC 1.50 10.22
India INR=IN +0.38 -3.44 .NSEI 0.90 1.69
Indonesia IDR= +0.85 -1.35 .JKSE -0.12 -15.41
Malaysia MYR= +0.36 -0.54 .KLSE -0.33 -4.66
Philippines PHP= +0.12 +5.28 .PSI 0.00 -14.45
S.Korea KRW=KFTC +0.58 +3.82 .KS11 1.27 11.35
Singapore SGD= +0.37 +0.10 .STI 1.13 -19.08
Taiwan TWD=TP +1.32 +5.64 .TWII 1.19 9.42
Thailand THB=TH +0.16 -1.87 .SETI 2.46 -18.28

 

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