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EMERGING MARKETS-Philippines hit by virus spike as China supports Asia stocks

Published 07/09/2020, 04:08 PM
Updated 07/09/2020, 04:10 PM
© Reuters.
USD/JPY
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NSEI
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JKSE
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TWII
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SETI
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SMPH
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* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* China shares close higher for 8th day
* Philippine shares hit one-week low

July 9 (Reuters) - A record 2,500-plus new coronavirus cases
sent Philippine shares more than 1% lower on Thursday, while
other Asian emerging markets gained strength from an eighth day
of gains for Chinese stocks.
The rally in Shanghai's main index .SSEC , which tends to
set the tone for other markets in the region, has been spurred
by the large volumes of extra cash pumped through the financial
system and reflects hopes the world's second-largest economy can
recover quickly this year.
Those hopes also helped the yuan CNY=CFXS trade near a
four-month high against the dollar as it fell below the key 7
mark. .SS CNY/
A Reuters poll showed long positions on the yuan climb to a
more than five-month high helped by a deluge of foreign inflows.

Currencies across southeast Asia were also generally higher,
with only South Korea's won KRW=KFTC flat.
With a number of countries seeing sharp spikes in COVID-19
cases, the recovery is still in question.
A fifth of the Philippines' total infections have been
confirmed in the past five days and officials have warned it may
have to tighten its lockdown again. Manila shares .PSI fell to a one-week low. In line with
the regional move against the U.S. dollar, the Philippine peso
PHP= advanced 0.2%.
"We have two competing narratives, where the reopening
optimism suggests buy but the fear of second-wave spreaders
suggests tempering one's enthusiasm," Stephen Innes, the chief
global market strategist of AxiTrader, said.
To no immediate effect, state media in China warned of
market risks on Thursday, calling on investors to pursue
rational investments. Simmering tensions between the United States and China are
still high on traders' list of concerns as U.S. elections heave
into view and China's introduction of a new national security
law in Hong Kong adds fuel to the fire.
On China's part, a senior diplomat said the two countries
should release more "positive energy". ** The Philippines' top losers were Jollibee Foods Corp
JFC.PS and SM Prime Holdings Inc SMPH.PS
** The Shanghai Composite index .SSEC rose 1.39% to its
highest close since February 2018

Asia stock indexes and currencies at 0728 GMT
COUNTRY FX FX FX INDEX STOCKS STOCKS
RIC DAILY % YTD % DAILY % YTD %
Japan JPY= +0.01 +1.28 .N225 0.40 -4.77
China CNY=CFXS +0.19 -0.41 .SSEC 1.39 13.13
India INR=IN +0.03 -4.81 .NSEI 0.74 -11.37
Indonesia IDR= +0.02 -3.26 .JKSE -0.02 -19.44
Malaysia MYR= +0.14 -4.04 .KLSE 0.26 -0.07
Philippines PHP= +0.16 +2.49 .PSI -1.48 -20.76
S.Korea KRW=KFTC +0.00 -3.27 .KS11 0.42 -1.35
Singapore SGD= -0.01 -3.36 .STI -0.57 -17.64
Taiwan TWD=TP +0.58 +2.28 .TWII 0.18 1.63
Thailand THB=TH +0.22 -4.01 .SETI -0.03 -13.79

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