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EMERGING MARKETS-Indonesia markets sink as Chinese moves hit Asia

Published 09/03/2020, 03:45 PM
Updated 09/03/2020, 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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IOIB
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GENT
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HTHB
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SETI
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PSI
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LMPI
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EMDE
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STI
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FIRE
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* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Baht tracking worst day in two weeks
* Rupiah down for third straight day
* Malaysia stocks slip 1%

By Shashwat Awasthi
Sept 3 (Reuters) - Indonesia's rupiah eased further and its stocks tumbled almost 1% on
Thursday as worries over growth, its policy response and planned changes that analysts worry may
threaten the independence of its central bank all dented sentiment.
The falls came on a rollercoaster morning for Asian shares, with stock markets across the
region lower as a report that China was planning sweeping policy changes to its semiconductor
industry to fight U.S. restrictions outweighed a batch of upbeat data from China. MKTS/GLOB
Stocks in Malaysia .KLSE slipped 0.9%, while Singapore .STI fell 0.8%.
The rupiah IDR= gave up another 0.3%, taking weekly losses in South East Asia's weakest
currency this year to more than 1%, even after Bank Indonesia (BI) intervened to stabilize the
market on Wednesday.
Proposals earlier this week for a new monetary policy framework that would shake up BI's
decision making and potentially give ministers a say on interest rates have shaken investors at
a time when the central bank is already aiding government fiscal stimulus efforts to back-stop
an emergency bond issuance scheme. Anthony Kevin, macro economist at Mirae Asset Sekuritas Indonesia, called the timing of the
proposals "very unfortunate" and said the widening of BI's mandate to include supporting
economic growth and jobs might disrupt the central bank's focus.
"As the discussion over the draft bill is still in a preliminary stage, we expect the
pressures on rupiah to continue in the short to medium term," he said.
Thailand's baht THB=TH , hit by the sudden resignation of the finance minister this week,
also weakened for the second straight day, falling 0.6%. Most other regional currencies traded flat to slightly lower as the U.S. dollar bounced,
although a Reuters poll showed bullish bets on Asian units had risen after four straight months
of declines in the greenback. Philippine shares .PSI snapped a five-day losing streak and advanced 0.6% as the country's
unemployment rate dropped in July from a record high three months ago. Indonesian 10-year benchmark yields are up 3.8 basis points at 6.946%
** Top losers on the Jakarta stock index .JKSE include Megapolitan Developments EMDE.JK
down 7%, Alfa Energi Investama FIRE.JK down 6.85% and Langgeng Makmur Industri LMPI.JK down
6.74%
** Top losers on FTSE Bursa Malaysia Kl Index .KLSE include Hartalega HTHB.KL down
7.16%, Genting GENT.KL down 2.2% and IOI Corporation IOIB.KL down 1.99%


Asia stock indexes and currencies at 0652 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD %
Japan JPY= -0.10 +2.18 .N225 0.94 -0.81
China CNY=CFXS -0.05 +1.78 .SSEC -0.77 10.77
India INR=IN -0.48 -2.73 .NSEI 0.05 -5.16
Indonesia IDR= -0.30 -6.12 .JKSE -0.96 -16.49
Malaysia MYR= -0.05 -1.35 .KLSE -0.94 -4.13
Philippines PHP= -0.04 +4.28 .PSI 0.60 -26.13
S.Korea KRW=KFTC -0.24 -2.68 .KS11 1.33 9.02
Singapore SGD= -0.14 -1.46 .STI -0.75 -21.78
Taiwan TWD=TP +0.69 +2.67 .TWII 0.46 6.34
Thailand THB=TH -0.60 -4.78 .SETI 0.06 -16.66

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