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EMERGING MARKETS-Philippine stocks up 2% on 2021 budget approval; ringgit firms

Published 12/11/2020, 01:49 PM
Updated 12/11/2020, 01:50 PM
© Reuters.
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NSEI
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KS11
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TWII
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MBBM
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PUBM
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PSI
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APEX
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STI
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POLA
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* Thai markets closed due to a holiday
* S. Korea shares set to close higher for sixth week
* Ringgit supported by high crude prices

By Anushka Trivedi
Dec 11 (Reuters) - Philippine shares jumped on Friday after
the country's Congress approved the 2021 budget this week aimed
at helping the pandemic-hit economy, while South Korean stocks
were underpinned by upbeat exports data.
The Philippine index .PSI surged 2.1%, the second
consecutive day of gains.
While President Rodrigo Duterte's office has yet to receive
the budget bill approved by Congress on Wednesday, his spokesman
said Duterte would scrutinise the spending plan and do his best
to approve the 4.5 trillion pesos ($93.61 billion) budget on
time.
The Philippines has been hard hit by the coronavirus, and
the government is now forecasting a deeper 8.5%-9.5% contraction
this year. Bangko Sentral ng Pilipinas is largely expected to hold fire
at its monetary policy meeting next week, analysts said, adding
they could not rule out a rate cut in 2021.
"The optimism about the national budget being almost passed"
is likely driving the share price gains, said Jennifer Lomboy,
fixed income fund manager at First Metro Asset.
"The possibility of yet another rate cut early next year
also drives the market as investors turn to equities in search
of better yields," said Lomboy in Manila.
South Korean shares .KS11 were poised for the sixth
straight week of gains, firming 0.8% on upbeat data, even though
a third wave of virus infections overshadowed the outlook.
South Korea's exports during the first 10 days of December
jumped 26.9% from a year earlier, customs agency data showed on
Friday. Other Asian stocks also rose, with foreign investors lured
by low valuations and high yields amid signs that regional
economies are rebounding. Shares in Malaysia
.KLSE and in India .NSEI traded higher on Friday.
Emerging Asian currencies broadly firmed against a weaker
greenback .DXY , with Taiwan's dollar TWD=TP advancing 1% to
lead gains.
Malaysia's ringgit MYR=MY gained 0.2% to hit its highest
in over seven months as crude prices rallied above $50 per
barrel mark. Malaysia is a net exporter of oil. O/R
Financial markets in Thailand were shut for a holiday.

HIGHLIGHTS
** Indonesian 10-year benchmark yields are up 1 basis points
at 6.205%
** Top gainers on the Jakarta stock index .JKSE include
Pool Advista Finance Tbk PT POLA.JK up 34.4% and Apexindo
Pratama Duta Tbk PT APEX.JK up 24.8%
** Top gainers on FTSE Bursa Malaysia Kl Index .KLSE
include Public Bank Bhd PUBM.KL up 10.7% and Malayan Banking
Bhd MBBM.KL up 5.1%

Asia stock indexes and currencies
at 0402 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD %
Japan JPY= +0.14 +4.38 .N225 -0.58 12.45
China CNY=CFXS +0.11 +6.50 .SSEC -1.03 9.46
India INR=IN +0.00 -3.09 .NSEI 0.45 11.26
Indonesia IDR= +0.07 -1.42 .JKSE 0.02 -5.79
Malaysia MYR= +0.17 +0.89 .KLSE 1.67 5.87
Philippin PHP= -0.03 +5.37 .PSI 2.07 -6.56
es
S.Korea KRW=KFTC -0.13 +6.18 .KS11 0.76 25.92
Singapore SGD= +0.11 +0.80 .STI 0.47 -11.94
Taiwan TWD=TP +1.09 +6.76 .TWII -0.61 18.05
($1 = 48.0500 Philippine pesos)


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