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EMERGING MARKETS-Eyes on Trump as data boosts Taiwan dollar, won

Published 10/05/2020, 01:14 PM
Updated 10/05/2020, 01:20 PM
© Reuters.
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* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Possibility of Trump discharge settle some nerves
* Taiwan Sept factory activity highest since March 2018
* Taiwan dollar firms 1% to highest since Aug. 2011
* S.Korean won, stocks also firm on factory survey

By Rashmi Ashok
Oct 5 (Reuters) - The Taiwan dollar and South Korean won
gained on Monday after surveys showed factory activity
recovering in both countries, while Asia's emerging markets drew
strength from White House statements on U.S. President Donald
Trump's health.
Trump's doctors said overnight that he had responded well to
treatment and could be discharged from hospital later in the
day, helping stocks and other riskier asset markets recover some
of Friday's knee-jerk losses. The Taiwan dollar TWD=TP was the region's best performer,
climbing nearly 1% to its highest since Aug. 2011 after a
private survey pointed to a strong recovery in its manufacturing
sector in September, driven by solid export orders.
The IHS Markit survey showed the Taiwan Manufacturing
Purchasing Managers' Index at 55.2, way above the 50-mark
threshold that separates contraction from growth, and at its
highest level since March 2018. The Taiwan dollar has risen more than 4.3% this year and is
the region's best performing currency after the Philippine peso.
The country's electronics and chipmaking sector is seen as a
beneficiary of U.S. restrictions on Chinese exports.
The South Korean won KRW=KFTC firmed 0.6% and stocks
.KS11 rose nearly 1.5% after its own IHS Markit survey showed
manufacturing activity shrank at the slowest pace in eight
months in September. "September data was encouraging for the South Korean
manufacturing sector as it neared stabilisation after a lengthy
period of contraction," Shreeya Patel, Economist at IHS Markit,
noted in the survey results.
Investors on Friday rushed for the safety of the U.S. dollar
.DXY , with concerns that a worsening of Trump's condition
could add more uncertainty to an already fraught Nov. 3 U.S.
presidential election.
A settling of nerves around the U.S. president's health led
to some positions being unwound on Monday, helping currencies
across the region.
IG strategist Jingyi Pan cautioned, however, that the week
ahead could still be tense.
"The fact of the matter remains that this heightened
sensitivity towards the election developments could carry on for
the week and month, one that may well see most Asia markets
treading water."


HIGHLIGHTS
** Indonesian 10-year benchmark yields were up 1.6 basis
points at 6.937%​​ while 3-year benchmark yields rose 35.1 basis
points at 5.429%​​
** Top gainers on the Singapore STI .STI included Jardine
Matheson JARD.SI up 4.96% and Jardine Strategic Holdings
JSH.SI up 3.18%
** Top gainers on FTSE Bursa Malaysia Kl Index .KLSE
included Top Glove Corporation TPGC.KL up 1.94% and Axiata
Group Bhd AXIA.KL up 1.74%


Asia stock indexes and
currencies at 0359 GMT
COUNTRY FX RIC FX FX INDEX STOCK STOCK
DAILY YTD % S S YTD
% DAILY %
%
Japan JPY= -0.17 +2.94 .N225 1.29 -1.39
India INR=IN +0.00 -2.41 .NSEI 0.62 -5.59
Indones IDR= +0.07 -6.34 .JKSE 0.34 -21.5
ia 3
Malaysi MYR= +0.12 -1.64 .KLSE 0.11 -5.47
a
Philipp PHP= +0.11 +4.59 .PSI -0.63 -23.7
ines 2
S.Korea KRW=KFTC +0.69 -0.44 .KS11 1.17 7.17
Singapo SGD= +0.12 -1.30 .STI 0.59 -22.0
re 9
Taiwan TWD=TP +0.88 +4.27 .TWII 0.12 4.44
Thailan THB=TH +0.22 -5.08 .SETI 0.69 -21.1
d 3



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