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EMERGING MARKETS-Malaysian shares gain on rate cut hopes; Asian currencies firm

Published 01/20/2021, 01:14 PM
Updated 01/20/2021, 01:20 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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DX
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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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PUBM
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TPGC
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SETI
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PSI
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CANI
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STI
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VNI
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IPCC
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MRNA
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* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Asian stocks https://tmsnrt.rs/3f2vwbA
* Philippine stocks set for fourth day of losses
* Malaysia's c.bank seen cutting key interest rate
* Asia FX strengthen as dollar slips

By Shriya Ramakrishnan
Jan 20 (Reuters) - Malaysian shares rose for the first time
in five days on Wednesday as investors bet on further policy
easing by its central bank to shore up a domestic economy
struggling from fresh coronavirus restrictions.
Emerging Asian currencies firmed as U.S. Treasury Secretary
nominee Janet Yellen's push for a hefty fiscal relief package
knocked the dollar index =USD from a one-month high and lifted
appetite for riskier assets.
The Singapore dollar SGD= , South Korean won KRW=KFTC and
Thai baht THB=TH advanced between 0.2% and 0.3% against the
greenback.
Kuala Lumpur's benchmark stock index .KLSE was up 0.8%,
and the ringgit MYR=MY held on to a tight range ahead of the
central bank meeting later in the day.
Malaysian equities have underperformed their Asian peers
this month, as sentiment took a hit after a state of emergency
was declared to curb the coronavirus, a day after the imposition
of a 14-day lockdown in the capital and five states.
A majority of economists polled by Reuters expect Bank
Negara Malaysia (BNM) to cut its overnight policy rate by 25
basis points to a historic low of 1.50%. "The risks of a rate cut by BNM at this meeting have risen
versus a month ago due to more restrictions on mobility and
building downside risks to growth in the near term," Sophia Ng,
an analyst at MUFG wrote in a note.
Ng however said there was also a chance the central bank
could view fiscal measures as a more effective tool to support
the economy, especially after the government announced new aid
measures on Monday. Indonesian shares .JKSE were the top gainers among
regional equity markets, boosted by strength in financial
stocks.
Meanwhile, Vietnamese shares fought to stabilise in volatile
trade. The benchmark VN-Index .VNI saw its biggest
single-session fall in 20 years on Tuesday, with a sudden spike
in sell orders causing a trading system freeze. Philippine shares .PSI also trailed, with the index down
more than 1% and headed for a fourth straight day of losses.
The Philippines, which has been battling one of the worst
COVID-19 outbreaks in Southeast Asia, is set to buy 20 million
doses of Moderna 's MRNA.O COVID-19 vaccine.
"Investors may be awaiting for further leads on the
execution phase of vaccine distribution, in which the pace of
business and economic recovery ultimately depends on," said
Frances Samorano, a research analyst at RCBC Securities.
"Trading activity has been focused on non-index names, which
have no impact on the market barometer."

HIGHLIGHTS:
** Indonesian 10-year benchmark yields are down 1 basis
points at 6.282%​​
** Top gainers on the Jakarta stock index .JKSE include
Capitol Nusantara Indonesia Tbk PT CANI.JK up 34.21% at 204
rupiah, Indonesia Kendaraan Terminal Tbk PT IPCC.JK up 25% at
675 rupiah
** Top gainers on FTSE Bursa Malaysia Kl Index .KLSE
include Public Bank Bhd PUBM.KL up 2.97% at 21.52 ringgit, Top
Glove Corporation Bhd TPGC.KL up​ 1.63% at 6.23 ringgit


Asia stock indexes and
currencies at 0437 GMT
COUNTRY FX RIC FX FX INDEX STOCKS STOCKS
DAILY % YTD % DAILY YTD %
%
Japan JPY= +0.14 -0.48 .N225 -0.62 3.69
China CNY=CFXS +0.17 +0.92 .SSEC 0.01 2.69
India INR=IN +0.07 -0.07 .NSEI 0.34 4.21
Indonesi IDR= +0.14 +0.07 .JKSE 1.31 7.12
a
Malaysia MYR= +0.02 -0.67 .KLSE 0.81 -0.76
Philippi PHP= +0.07 -0.04 .PSI -1.11 -0.29
nes
S.Korea KRW=KFTC +0.32 -1.20 .KS11 -0.12 7.50
Singapor SGD= +0.23 -0.36 .STI -0.28 5.06
e
Taiwan TWD=TP +1.71 +1.75 .TWII -0.06 7.71
Thailand THB=TH +0.20 +0.00 .SETI -0.41 4.62



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