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

Published 03/01/2021, 01:27 PM
Updated 03/01/2021, 01:30 PM
© Reuters.
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* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
* Singapore, Indonesia shares up 0.9%; Philippines 0.8%
* China Feb PMI grew at slowest pace in 9 months
* China's growth remains fairly robust - Capital Economics

March 1 (Reuters) - Asia's emerging stock markets rose on
Monday, led by a near 1% rise in Indonesia and the Philippines,
as bond markets ended last week on a calmer note and regional
manufacturing activity indicated that a gradual recovery was
still on track.
Singapore stocks .STI also climbed 0.9% as a wild ride
last week saw U.S. 10-year bond yields US10YT=TWEB peak at
1.61% before ending the week at 1.41% and further dipping on
Monday to 1.40%, easing pressure on regional debt markets and
equity valuations.
"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."
A steady recovery in the manufacturing sector has raised
hopes of improvement from the COVID-19 shock although a slowdown
in the region's largest market has raised some worry. China's
factory activity grew at the slowest pace in nine months in
February, while Japan figures showed growth at the fastest pace
in over two years and Indonesia and the Philippines also stayed
in expansion territory. "The big picture, supported by the latest figures, is that
China's growth remains fairly robust," Capital Economics said
after the China data, which was hit by a flare-up in COVID-19
cases.
Indonesia's rupiah IDR= , which backs some of the highest
debt yields in emerging markets, dipped 0.4% to its lowest level
since early November. Yields on its benchmark 10-year notes
ID10YT=RR eased off the day's high to rise 6.5 basis points to
6.66%.
Barclays in a note said 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 inched lower with the
biggest-listed glove makers down the most.
Top Glove Corp TPGC.KL announced on Friday it planned 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 was
expected to be strong. ** Indonesian 10-year benchmark yields up 6.5 basis points
at 6.664%​​, 3-year yields up 4.5 basis points at 5.475%
** Thailand's 10-year government bond yields are down 2
basis points at 1.64%
** Supermax Corp SUPM.KL , Hartalega Holdings Bhd HTHB.KL
Top Glove Corp TPGC.KL led losses in Malaysia

Asia stock indexes and currencies at 0349 GMT
COUNTRY FX FX FX INDEX STOCKS STOCKS
RIC DAILY % YTD % DAILY % YTD %
Japan JPY= +0.00 -3.13 .N225 2.26 7.93
China CNY=CFXS +0.07 +1.00 .SSEC 0.52 1.56
India INR=IN 0.00 -0.54 .NSEI 0.00 3.92
Indonesia IDR= -0.35 -1.75 .JKSE 0.85 5.28
Malaysia MYR= +0.02 -0.77 .KLSE -0.05 -3.09
Philippines PHP= +0.29 -1.19 .PSI 0.82 -4.05
S.Korea KRW=KFTC - -3.32 .KS11 - 4.85
Singapore SGD= +0.10 -0.70 .STI 0.88 4.61
Taiwan TWD=TP - +0.63 .TWII - 8.29
Thailand THB=TH -0.82 -1.38 .SETI 0.09 3.37

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