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EMERGING MARKETS-Most Asian currencies strengthen as dollar holds soft tone

Published 02/08/2021, 01:31 PM
Updated 02/08/2021, 01:40 PM
© Reuters.
USD/JPY
-
USD/SGD
-
DBKGn
-
USD/IDR
-
USD/MYR
-
USD/PHP
-
DX
-
NSEI
-
JKSE
-
KLSE
-
PCGB
-
SETI
-
PTT
-
FIRE
-
POLA
-
PTDU
-

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
* Taiwan's stock and bond markets closed until Feb. 16
* Thailand, India, Indonesia gain more than 1% each
* Gains in oil prices support energy firms

By Shruti Sonal
Feb 8 (Reuters) - Most emerging Asian currencies
strengthened against the dollar on Monday as the greenback
nursed losses following disappointing U.S. jobs data, while
stocks climbed in subdued trade ahead of the Lunar New Year
holiday.
The dollar index =USD weakened against a basket of six
major currencies, after falling 0.6% on Friday, as data at the
end of last week showed the U.S. economy created fewer jobs than
expected in January. FRX/
The Thai baht THB=TH , South Korean won KRW=KFTC ,
Indonesian rupiah IDR= and the Malaysian ringgit MYR= gained
between 0.1% and 0.5%.
"Going forward, the dollar index will likely rebound along
with the rising 10-year U.S. treasury yield, considering the
U.S. economic recovery and U.S. President Joe Biden's $1.9
trillion coronavirus relief package, said Gao Qi, FX strategist
for EM Asia at Scotiabank.
"Meanwhile, EM Asian currencies are expected to continue
benefiting from improving risk sentiment".
"It means we could see the dollar's divergent performance
versus EM Asian currencies including the CNY, CNH and INR in the
coming weeks", he added.
The Taiwan dollar < TWD=TP , best performing currency in the
region so far this year, added over 1% despite the central
bank's attempts to crackdown on speculation of the currency.
Taiwan's central bank said on Sunday it had banned Deutsche
Bank DBKGn.DE from trading Taiwan dollar deliverable and
non-deliverable forwards and suspended it for two years from
trading forex derivatives. The currency is at its strongest in more than 23 years
against the U.S. dollar in a rally fuelled by rising global
demand for tech products of the island's trade-dependent
economy.
Most shares in the region strengthened, tracking broader
gains in global equities, on hopes a $1.9 trillion COVID-19 aid
package will be passed by U.S. lawmakers soon. MKTS/GLOB
Thai .SETI , Indian .NSEI and the Indonesian .JKSE
benchmarks added over 1% each. Malaysia .KLSE gained as much
as 0.5% after government data showed the country's industrial
production index rebounded in December after two months of
decline. Energy stocks across the region saw solid gains as Brent oil
futures neared $60 a barrel, boosted by supply cuts among key
producers and hopes for further U.S. economic stimulus measures
stoking demand. O/R
Thailand's PTT PCL PTT.BK and Malaysian heavyweight
Petronas Chemicals Group PCGB.KL inched nearly 4% higher.
However, trading volumes remained low ahead of the Lunar New
Year holiday in most markets. Taiwan's stock and bond markets
were closed starting Monday until Feb. 16, while Chinese
financial markets will be closed for a week starting Thursday.

Highlights:

** Thailand's 10-year government bond yields are up 3 basis
points at 1.3%
** Top gainers on the Jakarta stock index .JKSE include
Pool Advista Finance Tbk PT POLA.JK , Alfa Energi Investama Tbk
PT FIRE.JK , Djasa Ubersakti Tbk PT PTDU.JK


Asia stock indexes and
currencies at 0526 GMT
COUNTRY FX RIC FX FX YTD INDEX STOCKS STOCKS
DAILY % DAILY YTD %
% %
Japan JPY= -0.11 -2.12 <.N22 1.84 6.79
5>
China S> C>
India INR=IN +0.09 +0.28 <.NSE 1.28 8.11
I>
Indones IDR= +0.14 +0.29 <.JKS 0.96 3.88
ia E>
Malaysi MYR= +0.22 -0.96 <.KLS 0.12 -2.87
a E>
Philipp PHP= +0.01 -0.05 <.PSI 0.08 -1.61
ines >
S.Korea C> 1>
Singapo SGD= +0.08 -0.92 <.STI 0.79 3.03
re >
Taiwan TWD=TP +1.42 +1.75 <.TWI 0.61 7.26
I>
Thailan THB=TH +0.13 -0.20 <.SET 1.16 4.46
d I>

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