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EMERGING MARKETS-Philippine stocks eye best week since June as virus slows

Published 10/23/2020, 12:37 PM
Updated 10/23/2020, 12:40 PM
© Reuters.

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Philippine stocks eye near 10% weekly gain, best since
June
* PSI rally boosted by foreign investors
* Taiwan dollar climbs nearly 1%, 3Q GDP data due next week

By Rashmi Ashok
Oct 23 (Reuters) - Philippine stocks surged 2% on Friday and
were set to end the week with their biggest gain since June,
bolstered by the easing of restrictions in capital Manila as new
coronavirus cases showed signs of slowing.
Broader Asian stocks were also firmer, after
better-than-expected U.S. jobs data and signs of progress in
talks for a $2 trillion stimulus deal in Washington supported
U.S. equities overnight. The Philippine index .PSI is on track for a near 10%
weekly gain, with shares of food and real-estate companies
climbing most, as investors hoped for increased footfall in
malls and hotels after curfew hours were trimmed earlier this
week.
The rally was boosted further by foreign investors, as new
daily coronavirus cases slowed in the last week and the
government moved to reopen the economy, signalling better
economic prospects, said Nicholas Mapa, ING's senior economist
for the Philippines.
"This may be the reason for the recent rally, but we'll have
to monitor the COVID-19 developments going forward," he
cautioned.
Data from Refinitiv showed that foreigners, while still net
sellers of Philippine equities so far in October, pumped in
about 557.44 million pesos ($11.5 million) into Philippine
equities across the last two sessions.
Yields on the Philippine ten-year benchmark bond
PH10YT=RR , usually seen as a safer investment than stocks,
have also climbed recently, signalling the return of optimism.
Taiwan's dollar TWD=TP saw most of the action for the day,
adding nearly 1% to continue its bullish run, after data on
Tuesday showed export orders rose for the seventh consecutive
month in September. While the coronavirus pandemic and U.S.-China trade tensions
remain sources of concern, the upcoming shopping season in the
United States and Europe and the work-from-home trend that has
helped demand for the country's tech products should keep export
demand steady, Taiwan's finance ministry recently forecast.
In the week ahead, focus will turn towards third-quarter
gross domestic product data from Hong Kong, South Korea and
Taiwan, where investors will look for signs of some economic
recovery from the easing of lockdown curbs which battered the
second-quarter showing.
Thailand will release manufacturing data for September,
while Malaysia's exports and Singapore's industrial production
will also be released.

HIGHLIGHTS
** In the Philippines, top index gainers were LT Group Inc
LTG.PS , up 9.03%, and Aboitiz Power Corp AP.PS , up 5.48%
** Top gainers on the Singapore STI .STI included
Comfortdelgro Corp CMDG.SI , up 1.41%, and Sembcorp Industries
Ltd SCIL.SI , trading 1.4% higher
** Indonesian 10-year benchmark yields are up 2.2 basis
points at 6.63%​​ while 3-year benchmark yields are down 0.5
basis points at 5.262%​​

Asia stock indexes and
currencies at 0412 GMT
COUNTRY FX RIC FX FX INDE STOCK STOCK
DAILY YTD % X S S YTD
% DAILY %
%
Japan JPY= +0.11 +3.72 <.N2 0.36 -0.42
25>
China S> EC>
India INR=IN +0.00 -2.92 <.NS 0.49 -1.75
EI>
Indones IDR= -0.03 -5.22 <.JK 0.28 -18.9
ia SE> 4
Malaysi MYR= -0.13 -1.40 <.KL 0.22 -5.46
a SE>
Philipp PHP= +0.04 +4.35 <.PS 1.87 -17.3
ines I> 0
S.Korea C> 11>
Singapo SGD= -0.08 -0.99 <.ST 0.16 -21.4
re I> 2
Taiwan TWD=TP +0.91 +5.12 <.TW -0.13 7.53
II>


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