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EMERGING MARKETS-Rate cut bets weigh on Indonesia as other markets rise

Published 06/19/2020, 04:51 PM
Updated 06/19/2020, 05:00 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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RELI
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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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STI
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DXY
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* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Second-wave COVID-19 fears weigh
* Rupiah eases a day after interest rate cut
* Philippine stocks suffer worst week since late April

June 19 (Reuters) - Indonesia's rupiah bucked gains in a
number of major emerging markets on Friday after signals from
the country's central bank it was likely to cut interest rates
further on one of Asia's big carry trade currencies in the
months ahead.
Emerging stock and currency markets were broadly higher as
Europe came online after a week which has seen investors weigh
hopes from the reopening of economies against new bouts of
coronavirus cases in China and a number of other countries.
The Thai baht THB=TH gained 0.4% as the dollar .DXY
eased late in Asian trade after a generally tight session. Full
percentage point gains for China .SSEC and Indian .NSEI
shares helped pull stock markets higher.
The rupiah IDR= , however, lost almost 0.4% as a number of
banks adjusted forecasts for the rest of the year following Bank
Indonesia's third rate cut this year on Thursday.
Officials are trying to revive an economy facing its first
contraction in two decades in the second quarter and there were
also worrying signs in the country's biggest daily increase in
COVID-19 cases yet, denting sentiment further. Tan Yanxi, an FX strategist at Maybank, pointed to the
divergence between local coronavirus trends and those of its
regional peers as a worry for some traders.
This week has seen geopolitical spats rise in parts of Asia,
with heightened tensions in the Korean peninsula and a deadly
border clash between China and India, alongside broader concerns
of a second wave, which together have put the dollar on the path
to its best week in a month. FRX/
China pledged further reforms and liquidity to bolster its
economy, while Indian shares were lifted by oil-to-telecoms
conglomerate Reliance Industries Ltd RELI.NS , which hit a
record high. .SS .BO
Philippine shares .PSI suffered their worst week since
April as the uptick of virus cases in the country force
authorities to keep some restrictions in place. stock indexes and currencies at 0822 GMT
COUNTRY FX FX FX INDEX STOCKS STOCKS
RIC DAILY % YTD % DAILY % YTD %
Japan JPY= +0.01 +1.55 .N225 0.55 -4.98
China CNY=CFXS +0.13 -1.64 .SSEC 0.96 -2.70
India INR=IN -0.08 -6.33 .NSEI 1.23 -16.08
Indonesia IDR= -0.28 -1.21 .JKSE 0.35 -21.55
Malaysia MYR= +0.06 -4.33 .KLSE 0.29 -5.00
Philippines PHP= +0.12 +1.12 .PSI -0.53 -19.2
S.Korea KRW=KFTC -0.13 -4.40 .KS11 0.37 -2.56
Singapore SGD= -0.01 -3.57 .STI -0.68 -17.82
Taiwan TWD=TP -0.02 +1.50 .TWII 0.01 -3.73
Thailand THB=TH +0.29 -3.55 .SETI -0.02 -13.09

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GRAPHIC: Indonesia rates and currency https://tmsnrt.rs/2AEZhRn
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