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EMERGING MARKETS-Dollar bounce hits Asia FX, glove makers weigh on Malaysia stocks

Published 08/12/2020, 03:47 PM
Updated 08/12/2020, 03:50 PM
© Reuters.
USD/JPY
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USD/SGD
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JP225
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USD/IDR
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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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KLSE
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KS11
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TWII
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SSEC
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TPGC
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HTHB
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PSI
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STI
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* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* U.S. 10-year Treasury yields up, dollar gains
* Glove makers hit Malaysian shares
* China shares fall as much as 2.3%

By Nikhil Nainan
Aug 12 (Reuters) - Emerging Asian currencies were flat to lower
against a resurgent U.S. dollar on Wednesday, while heavy losses for
Malaysian glove makers sent its stock market to a more than one-month
low.
The overall mood on stock markets was downbeat, with Chinese
equities .SSEC down around 1% after data showed a slowdown in money
supply and bank lending growth, clouding encouraging signals in the
past week. .SS
"July's money and credit data were all below expectations,"
Goldman Sachs analysts said in a client note.
China was first to emerge from coronavirus lockdowns and its
economy has shown signs of getting back into gear, but investors are
yet to be convinced that the path to recovery for it and other Asian
markets is clear.
New Zealand, a country seen by many to have successfully
contained the outbreak early on, reimposed strict restrictions on
Wednesday after new COVID-19 cases were uncovered. Asia's emerging currencies have been helped through the crisis by
a slide in the dollar as the U.S. Federal Reserve pumped billions of
additional dollars into the financial system and COVID-19 cases in
the United States rose.
That trend has reversed somewhat in the past week, however, and a
jump in U.S. Treasury yields overnight, ahead of a record $38 billion
bond auction later on Wednesday, gave the greenback another boost.
US/ GOL/
"The dollar short-squeeze seems to be ongoing still, and
sentiments in Asia are a tad cautious ahead of the U.S.-China trade
pact review due around 15 Aug," Maybank analysts said in a note.
Indonesia's rupiah IDR= was the biggest loser in Asia's
emerging currency space, down 0.4%.
After China, Malaysia .KLSE was among the hardest hit markets
on the day with shares down 0.6%.
Malaysia's Top Glove Corp TPGC.KL , the world's largest medical
glove maker, and its local rival, Hartalega Holdings HTHB.KL , fell
around 8.9% and 7.5%, respectively, dragging the benchmark lower.
The glove makers, who have enjoyed a surge in demand during the
coronavirus crisis, have been under pressure of late over their
treatment of migrant workers. Thailand was closed for a public holiday.

HIGHLIGHTS:
** Top Glove Corp TPGC.KL and Hartalega Holdings HTHB.KL top
losers on Malaysia's benchmark
** Indonesian 10-year benchmark yields down 3 basis points to
6.76%
Asia stock indexes and currencies at 0710 GMT
COUNTRY FX RIC FX FX INDEX STOCKS STOCKS
DAILY % YTD % DAILY % YTD %
Japan JPY= -0.26 +1.73 .N225 0.41 -3.44
China CNY=CFXS -0.07 +0.17 .SSEC -0.68 8.77
India INR=IN -0.01 -4.54 .NSEI -0.17 -7.11
Indonesia IDR= -0.48 -5.51 .JKSE 0.68 -17.05
Malaysia MYR= -0.05 -2.53 .KLSE -0.60 -2.10
Philippines PHP= +0.02 +3.52 .PSI 0.69 -23.29
S.Korea KRW=KFTC +0.03 -2.44 .KS11 0.57 10.68
Singapore SGD= -0.07 -2.15 .STI 0.59 -20.60
Taiwan TWD=TP +0.41 +2.36 .TWII -0.86 5.61

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