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EMERGING MARKETS-Indonesia c.bank steps in on rupiah, Thai baht down as finmin resigns

Published 09/02/2020, 04:05 PM
Updated 09/02/2020, 04:10 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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MISC
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PEPT
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SIME
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SETI
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PSI
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AC
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ALI
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BDO
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STI
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* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Rupiah set for worst day since July 15
* Baht snaps five-day winning streak
* Manila shares hit near one-month low

By Shashwat Awasthi
Sept 2 (Reuters) - Indonesia's central bank stepped in to ease pressure on the rupiah on
Wednesday as it hit a two-week low on the back of concerns that a proposed new framework for
monetary policymaking could undermine the bank's independence.
With moves across many of Asia's stock and currency markets limited, the Thai baht THB=TH
also stood out with a half percent fall after finance minister Predee Daochai resigned less than
a month into the job, sparking worries amid the government's efforts to shore up the
tourism-reliant economy. The rupiah IDR= , dogged by worries over economic slowdown, debt and a difficult policy
mix, came off its session lows but was still 1.3% lower amid worries around the central bank's
autonomy.
An advisory panel to the Indonesian government had on Monday proposed the biggest shake-up
in monetary policy decision-making in two decades, including a call for ministers to be given
voting rights at Bank Indonesia (BI) policy meetings.
Indonesian President Joko Widodo's assurances on Tuesday that BI would remain independent
did little to ease concerns among foreign investors. Jeffrey Halley, an analyst at trading platform OANDA, said the proposal introduced the
threat of politics interfering with independent monetary policy and would be "a retrograde step
from the perspective of international investors."
Among stocks, Philippines' main index .PSI fell for a fifth straight session and was down
1% amid concerns that rising coronavirus cases and new curbs in the capital will weigh further
on the economy.
"The extension of restrictions in an area that represents about more than 50% of the
country's economy has fuelled the continuation of the PSEi's slide," said Ruben Asuncion, chief
economist at Union Bank of the Philippines.

HIGHLIGHTS

** Indonesian 10-year benchmark yields are up 3.4 basis points at 6.898%
** In the Philippines, top index losers are Ayala Land ALI.PS down 4.59%, Ayala Corp
AC.PS down 2.54% and BDO Unibank BDO.PS down 2.11%
** Top gainers on FTSE Bursa Malaysia Kl Index .KLSE include PPB Group PEPT.KL up 2.93%,
Sime Darby SIME.KL up 2.26% and MISC Bhd MISC.KL up 2.25%


Asia stock indexes and currencies at 0650 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD %
Japan JPY= -0.07 +2.44 .N225 0.47 -1.73
China CNY=CFXS +0.06 +2.04 .SSEC -0.08 11.73
India INR=IN -0.17 -2.21 .NSEI 0.02 -5.72
Indonesia IDR= -1.32 -5.96 .JKSE -0.08 -15.77
Malaysia MYR= -0.10 -1.33 .KLSE 0.54 -3.72
Philippines PHP= +0.06 +4.28 .PSI -1.05 -26.57
S.Korea KRW=KFTC -0.20 -2.45 .KS11 0.63 7.59
Singapore SGD= +0.08 -1.16 .STI -0.13 -21.34
Taiwan TWD=TP +0.63 +2.62 .TWII -0.03 5.85
Thailand THB=TH -0.45 -4.13 .SETI 0.36 -17.07

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