(Corrects Reuters Instrument Code for Malaysia stock exchange
in paragraph 4)
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I
* Malaysian stocks up 0.6%, ringgit holds steady
* Thai assets may be pressured in near term - Citi
* Philippine stocks slide 1.7% after six-day winning streak
By Rashmi Ashok
Oct 27 (Reuters) - Malaysian shares rose on Tuesday as
political tensions eased after the largest party in the ruling
coalition declared its support for the prime minister, providing
some respite for the premier, who has faced calls to resign.
Most other Asian stock indices were firmly in the red, as
soaring global coronavirus cases threatened to derail a quick
economic recovery, even as uncertainty ramped up with just days
left for the U.S. presidential election. The United Malays National Organisation (UMNO) party pledged
to back Prime Minister Muhyiddin Yassin, tempering the political
uncertainty stemming from calls for his resignation after the
king rejected his request for emergency rule on Sunday.
The benchmark equity index .KLSE rose 0.6%, while the
ringgit MYR= held steady at 4.163 against the dollar after
three sessions of losses.
"The king's advice for members of parliament to not
continue with any irresponsible action that could undermine the
stability of the current administration could quiet political
noise in the near term," analysts at CGS CIMB wrote in a note.
They added that averting an emergency decree was a
favourable outcome for equity markets but cautioned that it may
not be enough to reverse foreign investors from selling off
their holdings in the near term.
Thai markets .SETI edged lower as protests demanding
reforms of the powerful monarchy and calls for the prime
minister to resign continued undeterred. "The most contentious protesters' demand of reform to
monarchy has a very high hurdle and this may keep the protests
ongoing for now. This shall keep the overall sentiment around
domestic Thai assets and the baht THB=TH weak," Citi analysts
noted.
Philippine stocks .PSI slid as much as 1.7% and were set
for their biggest drop since August, as investors sold off
shares after a massive six-session run of gains of 10%.
Asian currency markets bore a quiet look, with investors
shying away from big bets ahead of the U.S. election. The Taiwan
dollar TWD=TP was the sole exception, continuing its bullish
run and adding more than 1%.
Analysts at Citi wrote that cautious risk appetite ahead of
U.S. elections may also cause further unwinding of bullish fast
money positioning in Asian FX, mainly in the yuan CNY=CFXS ,
the South Korean won KRW=KFTC and the Singapore dollar SGD= .
"But medium term prospects for Asia FX remain supportive, in
our view, with the dollar likely to weaken over the medium term,
stronger than expected recovery of the region and control over
the spread of COVID-19," the analysts added.
HIGHLIGHTS
** In the Philippines, top index losers are LT Group Inc
LTG.PS down 3.81% and BDO Unibank Inc BDO.PS down 2.99%
** Top gainers on FTSE Bursa Malaysia Kl Index .KLSE
include Hartalega Holdings Bhd HTHB.KL up 3.85% and Axiata
Group Bhd AXIA.KL up 2.52%
** Indonesian 10-year benchmark yields are up 0.8 basis
points at 6.62% while 3-year benchmark yields are down 0.5
basis points at 5.224%
Asia stock indexes and
currencies at 0451 GMT
COUNTRY FX RIC FX FX INDEX STOCK STOCK
DAILY YTD % S S YTD
% DAILY %
%
Japan JPY= +0.07 +3.68 .N225 -0.34 -1.02
China