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EMERGING MARKETS-China's rally comes to a halt, dragging Asia shares

Published 07/10/2020, 04:08 PM
Updated 07/10/2020, 04:10 PM
© Reuters.
USD/JPY
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JP225
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USD/MYR
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USD/PHP
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NSEI
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JKSE
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KS11
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TWII
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SSEC
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SETI
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PSI
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ABS
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* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* China shares post best weekly gains in more than five
years
Philippines suffers worst week since April on rising virus cases

July 10 (Reuters) - Philippine stocks rebounded on Friday
though were headed for their worst week since April, while the
rest of Asia stocks and currencies dropped as an eight-day rally
in Chinese markets grounded to a halt after coronavirus
infections rose globally.
The 2% drop by Shanghai's main index .SSEC came after
state funds cut stakes in companies and state-run media on
Thursday urged investors to be prudent after the recent rally,
which was largely helped by government stimulus measures.
This week's run in the region was supported by China's main
indexes, enjoying their best weekly gain since the lead up to a
market bubble that popped in 2015. .SS
One country that did not benefit from the bull run driven by
recovery hopes in the world's second-biggest economy was the
Philippines, where investors fretted over record daily infection
numbers in three of the past six days.
This placed Manila .PSI as the region's worst performer
even as the market recovered late into the session on Friday to
trade roughly flat.
Analysts say the prospect of new restrictions to halt the
outbreak is weighing on markets.
Also, in a highly anticipated decision, a lower house
committee of the Philippines voted against the renewal of top
broadcaster ABS-CBN's ABS.PS license, keeping the network that
has angered President Rodrigo Duterte off air. In Indonesia, which posted its biggest single-day rise in
cases on Thursday, shares .JKSE fell half a percent, while the
rupiah IDR= fell by just under the same amount.
A Reuters poll found bets on the rupiah had turned bearish
for the first time since mid-May as the prospect of further
easing by the central bank could dent the appeal of its
high-yielding government bonds. Further easing could come as early as next week, where
Barclays expects a 25 basis point rate cut by Bank Indonesia in
what would be the fourth cut this year.
Markets in Singapore were closed for an election that is
almost certain to be won by the ruling People's Action Party as
the city-state's economy heads for its worst-ever recession.
** Broadcaster ABS-CBN ABS.PS fell 2.6% ahead of the vote
by lawmakers on its license renewal
** Indonesian 10-year benchmark yields are up 1 basis points
at 7.126%, while 3-year yields fell 1 basis points at 6.005%

Asia stock indexes and currencies at 0724 GMT
COUNTRY FX FX FX INDEX STOCKS STOCKS
RIC DAILY % YTD % DAILY % YTD %
Japan JPY= +0.35 +1.68 .N225 -1.06 -5.77
China CNY=CFXS -0.27 -0.69 .SSEC -1.95 10.92
India INR=IN -0.33 -5.14 .NSEI -0.76 -11.74
Indonesia IDR= -0.38 -3.48 .JKSE -0.55 -20.22
Malaysia MYR= -0.21 -4.22 .KLSE -0.18 -0.52
Philippines PHP= -0.16 +2.34 .PSI 0.08 -20.7
S.Korea KRW=KFTC -0.75 -3.99 .KS11 -0.81 -2.16
Singapore SGD= - -3.59 .STI - -17.69
Taiwan TWD=TP +0.47 +2.25 .TWII -0.98 0.64
Thailand THB=TH -0.48 -4.53 .SETI -0.64 -14.28


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