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EMERGING MARKETS-Dollar bump hits Asian currencies, stocks lower

Published 08/12/2020, 12:46 PM
Updated 08/12/2020, 12:50 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
* South Korean shares set for first drop in 7
* Glove makers hit Malaysian shares

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.
Often favoured for its safe-haven appeal, the greenback has
struggled this year as the U.S. Federal Reserve pumped billions
of additional dollars into the financial system and COVID-19
cases surged.
That trend has reversed somewhat in the past week and a jump
in U.S. Treasury yields overnight, ahead of a record $38 billion
bond auction later on Wednesday, gave the currency another boost
across the board. US/ GOL/
In Asia, Indonesia's rupiah IDR= was the biggest loser,
down 0.4%.
"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.
The mood on stock markets was more gloomy, with Chinese
equities .SSEC down 1.7% following late losses on Wall Street
overnight, and Singapore and Taiwan down 0.5% and 0.8%,
respectively.
China was first to emerge from coronavirus lockdowns and has
reported encouraging economic data in the past week, but
investors are yet to be convinced the road to recovery is
clear. .SS
New Zealand, a country seen by many to have successfully
contained the outbreak early on, reimposed strict restrictions
on Wednesday after a clutch of new cases. Outside China, Kuala Lumpur .KLSE was the hardest hit
market, with shares down almost 1%.
Top Glove Corp TPGC.KL , the world's largest medical glove
maker, and its local rival, Hartalega Holdings HTHB.KL , fell
around 12% at one point, dragging broader shares to their lowest
since July 3.
The glove makers have been under pressure over their
treatment of migrant workers. Thailand was closed for a public holiday.

HIGHLIGHTS:
** Top losers on FTSE Bursa Malaysia Kl Index include
Hartalega Holdings HTHB.KL down 7.65%, and Top Glove Corp
TPGC.KL down 5.64%
** Indonesian 3-year benchmark yields up 9.1 basis points to
5.331%
Asia stock indexes and currencies at 0336 GMT
COUNTRY FX RIC FX FX INDEX STOCKS STOCKS
DAILY % YTD % DAILY YTD %
%
Japan JPY= -0.17 +1.83 .N225 0.17 -3.67
China CNY=CFXS -0.07 +0.17 .SSEC -1.74 7.61
India INR=IN +0.00 -4.53 .NSEI 0.00 -6.95
Indonesia IDR= -0.41 -5.45 .JKSE 0.46 -17.23
Malaysia MYR= -0.07 -2.55 .KLSE -0.86 -2.36
Philippines PHP= -0.01 +3.49 .PSI 0.47 -23.46
S.Korea KRW=KFTC -0.06 -2.52 .KS11 -0.15 9.89
Singapore SGD= -0.10 -2.18 .STI -0.46 -21.42
Taiwan TWD=TP +0.40 +2.36 .TWII -0.75 5.73

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