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EMERGING MARKETS-Rupiah falls on bond outflows; most Asian FX, equities eye weekly loss

Published 02/19/2021, 04:26 PM
Updated 02/19/2021, 04:30 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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JARD
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NSEI
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US10YT=X
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JKSE
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KLSE
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ID10YT=RR
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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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AC
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AEV
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STI
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KEPE
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* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
* Indonesia benchmark bond yields up ~38 bps this week
* Rupiah may stay subdued for a while - DBS analyst
* S. Korea shares, won rebound to close up
* Indian currency markets shut

By Anushka Trivedi
Feb 19 (Reuters) - The Indonesian rupiah hit a three-week
low on Friday as investors dumped the country's bonds after an
interest rate cut amid a dour economic outlook and rising U.S.
yields, while most Asian stocks and currencies were headed for a
weekly loss.
Benchmark U.S. Treasury yields US10YT=RR returned to a
near one-year high hit earlier this week, putting pressure on
riskier Asian stocks and currencies across the board.
A subdued greenback USD= failed to lift the Thai baht
THB=TH , the Malaysian ringgit MYR=MY and Singapore's dollar
SGD= as they traded flat to lower on the day. Their respective
stock exchanges .SETI , .KLSE and .STI were on track to
shed 0.5% to 1.5% for the week.
The rupiah IDR= fell 0.4%, off about 1.6% from its
Tuesday's high, as a crippling COVID-19 infection wave led Bank
Indonesia (BI) to trim rates by 25 basis points (bps) the
previous day and downgrade its economic growth forecast for
2021. Indonesia's bonds, favoured by foreign investors for their
high yields, also suffered the brunt of rising U.S. yields and
in turn pressured the rupiah.
"Markets are looking past BI's rate cut and are focusing on
the uptick in U.S. Treasury yields," said Wei Liang Chang, a
macro strategist at DBS Bank.
"With equity risk appetite softening and U.S. yields staying
firm, the rupiah could stay on the back foot, with sentiment
further dampening after BI trimmed its growth expectations for
the year."
Indonesian 10-year benchmark yields ID10YT=RR were up 9.1
basis points to 6.624%, their highest since early November. The
yields have jumped about 38 bps so far this week.
A bright spot in markets, South Korea's stocks .KS11 and
won KRW=KFTC rebounded to close higher as the government
mulled a fifth round of COVID-19 cash handouts. Indian currency markets INR=IN were closed for a holiday,
while shares .NSEI fell 0.3% on profit-taking in lenders.
.BO

HIGHLIGHTS

** Rupiah ends about 0.6% weaker for the week
** Top losers on the Singapore STI .STI include: Jardine
Matheson Holdings Ltd JARD.SI down 3.9% and Keppel DC REIT
KEPE.SI down 2.4%
** In the Philippines, top index gainers are: Aboitiz Equity
Ventures Inc AEV.PS up 3.8% and Ayala Corp AC.PS up 3.1%

Asia stock indexes and currencies at 0746 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD %
Japan JPY= +0.05 -2.24 .N225 -0.72 9.38
China CNY=CFXS +0.38 +0.99 .SSEC 0.57 6.42
India INR=IN 0.00 +0.57 .NSEI -0.35 7.76
Indonesia IDR= -0.39 -0.18 .JKSE 0.33 4.04
Malaysia MYR= -0.07 -0.57 .KLSE 0.22 -2.95
Philippines PHP= -0.02 -0.89 .PSI 1.12 -2.99
S.Korea KRW=KFTC +0.15 -1.78 .KS11 0.68 8.15
Singapore SGD= +0.03 -0.35 .STI -0.99 1.28
Taiwan TWD=TP +1.35 +1.90 .TWII -0.51 10.92
Thailand THB=TH +0.03 -0.13 .SETI -0.82 3.41

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