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EMERGING MARKETS-Philippine stocks drop over 1% on growth worries, Asia FX eye Fed comments

Published 01/27/2021, 03:34 PM
Updated 01/27/2021, 03:40 PM
© Reuters
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* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Asian currencies flat to higher ahead of Fed statement
* Philippines Q4 GDP on Thursday

Jan 27 (Reuters) - The Philippine stock market fell more
than 1% on Wednesday as weak export data raised concerns about
the country's fragile economic recovery, while broader emerging
Asian shares extended losses after a sharp drop a day earlier.
The region's currencies traded flat to slightly higher as
investors eyed Federal Reserve Chair Jerome Powell's comments
after the conclusion of a two-day policy meeting where analysts
expect the Fed to retain its ultra-easy monetary policy stance.
The South Korean won KRW=KFTC edged 0.2% higher, while the
Indian rupee INR=IN and ringgit firmed MYR= 0.1% each.
Many emerging markets in Asia fell sharply on Tuesday as
investors tempered hopes for the quick passage of more U.S.
stimulus, which had boosted sentiment in recent weeks.
Philippine stocks .PSI fell 1.6% as underwhelming trade
data weighed on sentiment one day before gross domestic product
figures are released. Philippine exports dipped 0.2% in December
and imports fell sharply, resulting in the widest monthly trade
deficit since March. "It is the clearest sign yet that the renewed COVID-19
restrictions and surging case numbers is having an immediate
impact on already fragile domestic consumption," said Jeffrey
Halley, a senior Asia-Pacific analyst with Oanda.
Nicholas Mapa, a senior ING economist for the Philippines
expects the slow global recovery to limit exports into 2021,
with imports remaining soft due to weak local demand.
Indian shares .NSEI also slid more than 1% as Amazon
sought to block the sale of Future Group's $3.4 billion retail
assets to Mukesh Ambani's Reliance Industries RELI.NS . Markets
were closed on Tuesday for a public holiday.
In a grim milestone, Indonesia surpassed a million confirmed
coronavirus cases on Tuesday, while health experts believe the
true spread of the virus in the country could be three times
higher. Shares in Jakarta .JKSE fell 0.6% and have so far lost
more than 3% this week.

HIGHLIGHTS:
** Indonesia says new sovereign wealth fund attracts $10 bln
commitment ** China's industrial profits extend growth in December amid
brisk factory recovery stock indexes and currencies at 0645 GMT
COUNTRY FX FX FX INDEX STOCKS STOCKS
RIC DAILY % YTD % DAILY % YTD %
Japan JPY= -0.05 -0.40 .N225 0.31 4.34
China CNY=CFXS +0.04 +1.04 .SSEC -0.13 2.64
India INR=IN +0.16 +0.34 .NSEI -1.09 0.73
Indonesia IDR= +0.04 +0.04 .JKSE -0.55 2.13
Malaysia MYR= +0.10 -0.57 .KLSE 0.80 -2.42
Philippines PHP= +0.00 -0.12 .PSI -1.63 -3.87
S.Korea KRW=KFTC +0.19 -1.65 .KS11 -0.57 8.67
Singapore SGD= -0.02 -0.29 .STI 0.61 4.21
Taiwan TWD=TP +1.56 +1.82 .TWII 0.27 6.58
Thailand THB=TH +0.03 -0.03 .SETI 0.00 4.38

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