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EMERGING MARKETS-Indonesia, Philippine shares climb 1% as bond markets calm

Published 03/01/2021, 03:29 PM
Updated 03/01/2021, 03:30 PM
© Reuters.
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ID10YT=RR
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* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
* China Feb PMI grew at slowest pace in nine months
* China's growth remains fairly robust - Capital Economics
* Glove makers drag down Malaysian shares

March 1 (Reuters) - Indonesia, Singapore and Philippine stocks climbed about
1% on Monday as bond markets ended last week on a calmer note and regional
manufacturing activity indicated that a gradual recovery was still on track.
In Mumbai, shares .NSEI climbed 1.2% after India's economy returned to
growth in the December quarter and the country kicked off an expanded COVID-19
vaccination drive, with investors betting on a faster economic recovery.
.BO
A slew of data on Monday showed manufacturing activity in Indonesia and the
Philippines was still in expansion territory while Japan figures showed the
fastest growth in over two years. Factory activity in China, though, missed
forecasts in February as a spike in COVID-19 cases led to lockdowns in parts of
the country. "The big picture, supported by the latest figures, is that China's growth
remains fairly robust," Capital Economics said after the China data, which came
over the weekend.
The moves on Monday followed a wild ride last week that saw U.S. 10-year
bond yields US10YT=TWEB peak at 1.61% before ending the week at 1.41%, easing
pressure on Asia's debt markets and equity valuations. The yields were at about
1.41% on Monday.
"This is, for now, likely to be a modest wobble," analysts at HSBC wrote in
a note, adding that "as long as Asian earnings remain strong and bond yields
remain low, the outlook remains positive."
The yield on Indonesia's benchmark 10-year notes ID10YT=RR largely gave up
earlier gains and fell 0.89 basis point to 6.589%. The rupiah IDR= dipped 0.3%
to its lowest since early November.
Indonesia's debt offers some of the highest real yields in emerging markets.
Barclays said in a note dollar demand, including for hedging, "is likely to
remain elevated as market participants reduce risk," noting foreign investors
sold 13.5 trillion rupiah worth of bonds last week, unwinding the bulk of 2021
purchases.
Meanwhile, Malaysian shares .KLSE dipped 0.3% as glove makers, one of the
biggest benefactors of the pandemic, fell sharply.
Top Glove Corp TPGC.KL , the world's top disposable medical glove maker,
announced plans on Friday to raise HK$14.95 billion through a secondary listing
in Hong Kong, a move that CGS-CIMB said would dilute earnings per share and was
avoidable given that earnings over the next year were expected to be strong.
Markets in South Korea and Taiwan were closed for a public holiday.

HIGHLIGHTS:
** Indonesian 10-year benchmark yields up 6.5 basis points at 6.664%​​,
3-year yields up 4.5 basis points at 5.475%
** Emperador Inc EMP.PS led gains in the Philippines while conglomerate
Ayala Corp AC.PS rose 4.28%
** Supermax Corp SUPM.KL , Hartalega Holdings Bhd HTHB.KL Top Glove Corp
TPGC.KL led losses in Malaysia
** Singapore Airlines Ltd SIAL.SI jumped 5.42%
Asia stock indexes and currencies at 0644 GMT
COUNTRY FX RIC FX FX YTD INDEX STOCKS STOCKS
DAILY % % DAILY % YTD %
Japan JPY= +0.01 -3.12 .N225 2.41 8.09
China CNY=CFXS +0.05 +0.98 .SSEC 0.88 1.93
India INR=IN +0.29 -0.26 .NSEI 1.18 5.14
Indonesia IDR= -0.32 -1.72 .JKSE 1.08 5.52
Malaysia MYR= +0.00 -0.79 .KLSE -0.33 -3.36
Philippines PHP= +0.23 -1.25 .PSI 1.15 -3.74
S.Korea KRW=KFTC - -3.32 .KS11 - 4.85
Singapore SGD= +0.17 -0.62 .STI 0.98 4.72
Taiwan TWD=TP - +0.63 .TWII - 8.29
Thailand THB=TH -0.43 -0.99 .SETI 0.12 3.40

 

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