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EMERGING MARKETS-Most Asian currencies gain, Malaysia eyes key budget decision

Published 11/26/2020, 12:39 PM
Updated 11/26/2020, 12:40 PM
© Reuters.
USD/JPY
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USD/SGD
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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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SETI
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STI
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BYD
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ZAA
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MIAPJ0000PUS
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* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Dollar index against basket of 6 other currencies near
2-mth low
* Malaysian parliament votes on budget later in the day
* Singapore stocks eye best month since May 2009

By Shruti Sonal
Nov 26 (Reuters) - Most emerging Asian currencies firmed on
Thursday amid sustained investor appetite for higher-yielding
assets on optimism about effective coronavirus treatments and as
the U.S. dollar remained defensive following downbeat U.S.
economic data.
The dollar index =USD against a basket of six other
currencies was near the lowest in more than two months after
data on Wednesday showed weekly U.S. jobless claims rose more
than expected and personal incomes fell. FRX/
The Singapore dollar SGD= , the Malaysian ringgit MYR=
and Indonesia's rupiah IDR= gained between 0.1% and 0.3%. The
currencies have benefited in recent sessions from positive data
on the efficacy of COVID-19 vaccines and signs of stability in
U.S. politics.
The Philippine peso, which has gained over 5% so far this
year, underperformed its peers, while the Thai baht THB=TH
traded in the red for the fourth session in five.
"THB could see directional biases realigned with its Asian
FX peers. But with risks from domestic protests still intact,
any gains vs USD could lag regional peers," Maybank analysts
said in a note.
Equities in the region presented a mixed front even as
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 0.3%.
Analysts have said that potential COVID-19 vaccines is no
shot in the arm yet for the broader emerging markets, even
though Indonesia and India are tipped to be among the first to
receive a boost from their arrival. In Malaysia, all eyes will be on the parliament which will
decide whether to approve the government's 2021 budget later in
the day, in a vote that could decide Prime Minister Muhyiddin
Yassin's political future. "This vote will be seen as a referendum on whether PM
Yassin's coalition holds the majority in Parliament. Should the
Budget fail to pass Parliament, it would trigger another bout of
political uncertainty putting pressure on MYR," said
Venkateswaran Lavanya, analyst at Mizuho Bank.
The Singapore bourse .STI , which has gained about 18% so
far in the month, pulled back for a second straight session.
However, it was still on track for its biggest weekly jump in
more than 11 years.

HIGHLIGHTS:

** Malaysia's 10-year benchmark yield is up 1.5 basis points
at 2.67%
** Top losers on Thailand's SETI .SETI include Samui Buri
Property Fund; M Pictures Entertainment PCL MPIC.BK ; AEC
Securities PCL AEC.BK
** Thai protesters call on king to give up royal fortune
Asia stock indexes and
currencies at 0423 GMT
COUNTRY FX RIC FX FX INDE STOCK STOCK
DAILY YTD % X S S YTD
% DAILY %
%
Japan JPY= +0.13 +4.12 <.N2 0.52 11.74
25>
China S> EC>
India INR=IN +0.00 -3.42 <.NS 0.13 5.81
EI>
Indones IDR= +0.21 -1.56 <.JK 0.69 -9.23
ia SE>
Malaysi MYR= +0.07 +0.17 <.KL 0.24 0.79
a SE>
Philipp PHP= -0.07 +5.38 <.PS -2.17 -12.3
ines I> 5
S.Korea C> 11>
Singapo SGD= +0.08 +0.43 <.ST -0.72 -11.6
re I> 1
Taiwan TWD=TP +1.09 +5.61 <.TW 0.46 15.04
II>
Thailan THB=TH +0.02 -1.35 <.SE 0.29 -10.1
d TI> 3

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