🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

EMERGING MARKETS-Indonesian stimulus props up banking stocks amid broader Asia caution

Published 07/08/2020, 01:28 PM
Updated 07/08/2020, 01:30 PM
© Reuters.
USD/JPY
-
USD/SGD
-
JP225
-
USD/IDR
-
USD/MYR
-
USD/PHP
-
NSEI
-
JKSE
-
KLSE
-
KS11
-
TWII
-
SSEC
-
SETI
-
PSI
-
BMRI
-
BBCA
-
AP
-
ALI
-
STI
-

(Repeats. No change to text.)
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Indonesia's banking stocks drive gains on $40 bln bond
scheme
* Markets stuck in 'consolidative ranges' - Maybank

By Nikhil Nainan
July 8 (Reuters) - Indonesia bucked Asia's second day of
stock losses on Wednesday on hopes extra funds pumped into the
economy from the government and central bank would strengthen
the financial sector and the coronavirus-hit economy.
Elsewhere, rising global infections and an increasingly
cautious outlook over U.S. growth hit investor appetite for
risk, keeping currencies flat and pushing stock markets in the
Philippines and South Korea on the retreat.
Stocks across the region were on a tear on Monday, gaining
around 7% over a handful of sessions, but the mood globally has
turned darker as the volume of infections stirred fears about
the scale of recession to come.
Central banks across Asia have been acting aggressively to
ease the pain for their economies, with Malaysia the latest to
cut rates on Tuesday. Daniel Dubrovsky, an analyst with DailyFX, said Indonesia's
banks were gaining on the flood of extra liquidity from a
government and central bank-sponsored bond scheme worth roughly
$40 billion.
Ratings agency S&P said earlier this week that the details
of the scheme, which involves both central bank bond-buying and
support for businesses, had calmed its concerns about any impact
on Indonesia's credit rating. Indonesian shares .JKSE gained 1.3% in morning trade to
hit a one-month high. The rupiah was flat against the dollar
IDR= .
Maybank analysts said in a note that markets across the
region were stuck in "consolidative ranges", weighed down by
fears that the rise in infections could hit activity in the
third quarter and undermine recent positive data as countries
eased restrictions.
Bloomberg reported Philippines President Rodrigo Duterte as
saying the country would "have to be very circumspect in
reopening the economy", as cases mount. Stocks were around a
third of a percent lower.
Currency markets in both emerging and developed parts of
Asia were largely flat as the cautious global mood supported
this week's flows into the dollar. The biggest move in southeast
Asia came from the Philippine peso PHP= , which advanced just
0.2%.

HIGHLIGHTS:
** The top boost to the Jakarta stock index bank Bank
Central Asia Tbk BBCA.JK , up 2.7% followed by Bank Mandiri
(Persero) Tbk BMRI.JK were gained 4.5%
** In the Philippines, top losers were Aboitiz Power Corp
AP.PS , which fell 3.19% and Ayala Land Inc ALI.PS , down
-2.59%
Asia stock indexes and currencies at 0405 GMT
COUNTRY FX FX FX INDEX STOCKS STOCKS
RIC DAILY % YTD % DAILY % YTD %
Japan JPY= -0.07 +0.95 .N225 -0.22 -4.61
China CNY=CFXS -0.09 -0.79 .SSEC 0.74 10.49
India INR=IN +0.00 -4.74 .NSEI 0.25 -11.01
Indonesia IDR= +0.00 -3.61 .JKSE 1.34 -19.75
Malaysia MYR= -0.05 -4.35 .KLSE 0.66 -0.73
Philippines PHP= +0.22 +2.36 .PSI -0.32 -20.05
S.Korea KRW=KFTC +0.10 -3.19 .KS11 -0.25 -1.77
Singapore SGD= +0.01 -3.61 .STI -0.02 -17.44
Taiwan TWD=TP +0.50 +2.29 .TWII 0.65 1.46
Thailand THB=TH +0.00 -4.29 .SETI 0.17 -12.97

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.