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EMERGING MARKETS-Philippine stocks near 2-month low, rupiah recovers

Published 07/23/2020, 03:47 PM
Updated 07/23/2020, 03:50 PM
© Reuters.
USD/JPY
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USD/SGD
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JP225
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USD/IDR
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USD/MYR
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USD/PHP
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NSEI
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JKSE
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KLSE
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KS11
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TWII
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SSEC
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SETI
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PSI
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INAF
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KAEF
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STI
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CAPD
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MAPI
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MAPL
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PEHA
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* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Philippine stocks hit lowest since June 1
* Singapore shares climb 1%
* U.S.-China worries cap broader view

By Shashwat Awasthi
July 23 (Reuters) - Philippine shares fell for the third straight session on Thursday as
domestic coronavirus cases topped 1,000 for a seventh successive day and renewed U.S.-China
tensions weighed on a number of emerging Asian markets.
Stock markets in Taiwan .TWII and South Korea .KS11 tracked a roughly half percent fall
in Shanghai shares after Beijing on Wednesday called the shutdown of its Houston consulate an
"unprecedented escalation" of tensions with the United States. Seoul shares also weakened as the country slid into recession in the second quarter.
Indonesia was among those bucking the trend, however, with the rupiah recouping more of last
week's hefty losses against a shaky U.S. dollar.
Manila's benchmark index .PSI , the region's biggest laggard this year, sank as much as
2.4% before recovering some ground to end 0.6% lower as worries about its COVID-19 outbreak
continued to grow. Chinese state media on Thursday cast the events in Houston as an attempt to blame Beijing
for U.S. failures ahead of the November presidential election but many traders still expect the
country to retaliate.
"While investors had been shrugging off earlier aggravation on Hong Kong and more, the
shuttering of foreign consulates perhaps opens up a new front for U.S.-China tensions," said IG
market strategist Jingyi Pan.
Among currencies, the rupiah IDR= rose 0.7% to its strongest level this week, gaining for
a third straight day despite a record increase in new virus cases on Wednesday. Southeast Asia's worst performing currency so far this year had lost more than 2% last week
after Bank Indonesia cut interest rates for a fourth time this year and COVID-19 infections
continued to multiply.
Jakarta stocks .JKSE advanced 0.7% to their highest since March 11.
In tourism-reliant Thailand, where a swathe of cabinet resignations this month has stoked
political and economic uncertainty, the baht THB= and stocks .SETI eased.
The central bank on Thursday denied intervening in the currency market to strengthen
exporters' competitive edge and dismissed a media report that Thailand could be added to a U.S.
watch list for currency manipulation as speculation. Singapore stocks .STI bounced after losses on Wednesday to add 1%.


HIGHLIGHTS:

** Indonesian 10-year benchmark yields are down 5.7 basis points at 6.935%
** Top gainers on the Jakarta stock index .JKSE include Indofarma Tbk INAF.JK up 25%,
Phapros Tbk PEHA.JK up 24.92% and Kimia Farma Tbk KAEF.JK up ​24.77%
** Top gainers on the Singapore STI .STI include Mapletree Logistics Trust MAPL.SI up
5.42%, Mapletree Industrial Trust MAPI.SI up 4.71% and Ascendas Real Estate Investment Trust
AEMN.SI up 4.49%


Asia stock indexes and currencies at 0650 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD %
Japan JPY= +0.05 +1.42 .N225 -0.58 -3.83
China CNY=CFXS +0.06 -0.45 .SSEC -0.59 8.63
India INR=IN -0.18 -4.49 .NSEI 0.64 -7.93
Indonesia IDR= +0.65 -4.51 .JKSE 0.66 -18.34
Malaysia MYR= -0.07 -3.79 .KLSE 0.72 0.61
Philippines PHP= -0.02 +2.63 .PSI -0.58 -22.86
S. Korea KRW=KFTC -0.17 -3.42 .KS11 -0.56 0.84
Singapore SGD= +0.20 -2.76 .STI 0.94 -18.74
Taiwan TWD=TP +0.40 +2.37 .TWII -0.48 3.47
Thailand THB=TH -0.06 -5.41 .SETI -0.12 -14.21

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