* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Singapore lenders slide, MAS asks banks to cap dividends
* Singapore Airlines hits lowest since Aug. 1998
* Remote work, U.S.-China tech troubles to benefit Taiwan -
ANZ
By Rashmi Ashok
July 30 (Reuters) - Singapore shares hit a two-month low on
Thursday, hurt by a sell-off in banking stocks after the central
bank asked lenders to cap dividends this year, denting the
appeal of a sector favoured for steady payouts to shareholders.
The FTSE Straits Times Index .STI slid as much as 2.4%,
after the Monetary Authority of Singapore (MAS) called on banks
to cap 2020 total dividends at 60% of what they paid out last
year as the city-state faces its deepest recession ever in the
wake of the coronavirus pandemic that has roiled the global
economy. Shares of top lenders hit their lowest in months, with DBS
Group DBSM.SI sliding 4.3%, OCBC OCBC.SI skidding 5.5% and
United Overseas Bank UOBH.SI dropping 4.1%.
According to Refinitiv Eikon data, the three banks have
among the highest dividend yields on the index, ranging between
5.5% and 6.2% against the index's average of 4.7%.
"Although this had perhaps been a milder recommendation
compared to the European Central Bank's ... it would
nevertheless diminish the attractiveness of the shares in the
short term if adopted," wrote IG market strategist Jingyi Pan.
Central banks across the world have either urged lenders to
consider lowering dividends or put outright restrictions on what
they can pay, in a bid to increase lending capacity and provide
adequate capital buffers to deal with an expected spike in bad
debts in the months ahead as economies soak up the impact of the
coronavirus downturn.
Elsewhere, Singapore Airlines stock SIAL.SI also slid 5% -
to its lowest since Aug. 27, 1998 - after it posted a S$1.12
billion ($817 million) first-quarter net loss and warned
passenger capacity may still be less than half of pre-pandemic
levels by March 2021. While most Asian currencies were little changed after
Wednesday's U.S. Federal Reserve meeting, the Taiwan dollar
TWD=TP was on course for a fourth straight session of gains,
up 0.8%. Its stock market .TWII added more than 1% against
broader regional declines.
The island's markets are the region's second-best performers
so far this year, benefiting from an increase in people working
from home during the coronavirus pandemic which has sparked
demand for laptops, tablets, and servers, boosting Taiwan's tech
sector.
"The tech sector is singularly driving Taiwan's export
performance and is also the focus of the government's investment
drive. As a result, we believe Taiwan's economy is weathering
the pandemic better than its peers," wrote analysts at ANZ.
"The U.S.-China tech decoupling could drive more flows into
Taiwan, given its prominent role in Asia's tech supply chain,"
ANZ added.
HIGHLIGHTS
** Indonesian 10-year benchmark yields were up 2 basis
points at 6.846% while 3-year benchmark yields rose 7.8 basis
points at 5.404%
** In the Philippines, top index losers were Robinsons Land
Corp RLC.PS down 4.25% and Aboitiz Equity Ventures Inc
AEV.PS down 1.92%
** Top gainers on the Thailand's SETI .SETI include Max
Metal Corp PCL MAX.BK up 100% and Thai-German Products PCL
TGPRO.BK up 16.67%
Asia stock indexes and
currencies at 0332 GMT
COUNTRY FX RIC FX FX INDEX STOCKS STOCKS
DAILY YTD % DAILY YTD %
% %
Japan JPY= -0.10 +3.42 .N225 0.05 -5.28
China
>
India INR=IN +0.00 -4.57 .NSEI 0.00 -7.94
Indonesia IDR= -0.55 -4.60 .JKSE 0.00 -18.86
Malaysia MYR= +0.02 -3.56 .KLSE -0.47 0.95
Philippines PHP= -0.10 +3.22 .PSI -0.32 -23.91
S.Korea
>
Singapore SGD= -0.11 -2.21 .STI -1.37 -21.24
Taiwan TWD=TP +0.69 +2.75 .TWII 1.05 5.64
Thailand THB=TH +0.32 -4.59 .SETI 0.47 -14.89