* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Sino-U.S. tensions keep Asian shares muted
* S. Korean shares down on GDP forecast cut
By Shriya Ramakrishnan
Aug 27 (Reuters) - Asian currencies struggled on Thursday as
investors looked to a key speech by Federal Reserve Chairman
Jerome Powell for hints on inflation and monetary policy, while
Sino-U.S. tensions kept a lid on gains for stock markets.
Investors have largely priced in a dovish message from
Powell when he opens the Kansas City Fed's annual economic
policy conference later in the day, the question is whether any
adjustments he may make to its policy toolbox will be enough to
flatten U.S. market interest rates further.
"Given the overwhelming likelihood of Fed staying dovish for
a long time to come, I wouldn't read much into the recent
struggle for Asia currencies to make headway against USD – all
it needs is a reinforcement of Powell and Fed of their dovish
stance for the USD sell off theme to sustain," said Mahesh
Sethuraman, deputy head of global sales trading at Saxo Capital
Markets.
The Indonesian rupiah IDR= , Malaysian ringgit MYR= and
Philippines peso PHP= were all flat to marginally lower
against the dollar, but the Thai baht THB=TH edged up 0.2% and
the Taiwan dollar TWD=TP was again the top gainer, up 0.6%.
South Korea's won KRW=KFTC also held in positive territory
as its central bank kept policy rates at a record low 0.50%, in
a widely expected move after delivering 75 basis points of rate
cuts so far this year. Shares in Seoul's export-focused KOSPI .KS11 , however,
were set to snap a four-day winning streak as the Bank of Korea
cut its 2020 forecast for gross domestic product for an economy
now battling its worst COVID-19 outbreak since early March.
Stock markets across Asia lagged a tech-driven rally on Wall
Street overnight after Washington blacklisted 24 Chinese
companies it said were part of construction and military action
in the South China Sea. Shares in Singapore .STI were down about 0.5%, while
Philippine .PSI and Thai .SETI stocks posted marginal gains.
HIGHLIGHTS:
** Thailand's 10-year government bond yields TH10YT=RR are
down 2.5 basis points at 1.395%
** Top losers on the Singapore STI .STI include Mapletree
Commercial Trust MACT.SI down 3.03% at S$1.92; Singapore
Airlines Ltd SIAL.SI down 2.13% at S$3.68; Dairy Farm
International Holdings Ltd DAIR.SI down 2.07% at S$4.26
** Top gainers on the Thailand's SETI .SETI include
Asiasoft Corporation PCL AS.BK up 13.76% at 4.96 baht, Thai
Film Industries PCL TFI.BK up 12.5% at 0.09 baht, TKrungthai
Industries PCL TKT.BK up 11.43% at 1.17 baht
Asia stock indexes and
currencies at 0411 GMT
COUNTRY FX RIC FX FX INDEX STOCK STOCKS
DAILY % YTD % S YTD %
DAILY
%
Japan JPY= -0.01 +2.47 .N225 -0.27 -1.82
China
>
India INR=IN 0.00 -3.92 .NSEI 0.56 -4.56
Indonesi IDR= -0.14 -5.51 .JKSE -0.12 -15.33
a
Malaysia MYR= -0.07 -1.92 .KLSE 0.21 -2.26
Philippi PHP= -0.10 +4.11 .PSI 0.20 -23.95
nes
S.Korea
>
Singapor SGD= +0.00 -1.55 .STI -0.53 -21.54
e
Taiwan TWD=TP +0.56 +2.57 .TWII 0.07 7.04
Thailand THB=TH +0.22 -4.32 .SETI 0.27 -16.06