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EMERGING MARKETS-SMIC's U.S. curbs aid S.Korean, Taiwan stocks after Chinese data boost

Published 09/28/2020, 12:59 PM
Updated 09/28/2020, 01:00 PM
© Reuters.
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* Jakarta COVID-19 curbs extended
* Malaysia's ruling coalition wins state election; reduces
political uncertainty
* South Korea, Taiwan chipmakers rise after U.S tightens
exports
to China's SMIC

By Nikhil Nainan
Sept 28 (Reuters) - South Korean and Taiwanese stocks
climbed over 1% each on Monday as investors priced in a boost
for their tech-focussed economies from tighter U.S. curbs on
China's biggest chipmaker, adding to a broadly brighter start
across Asian markets.
Data showing profits at Chinese industrial firms grew for a
fourth straight month underpinned stock markets in the region,
although the extension of export curbs on Semiconductor
Manufacturing International Corp 0981.HK 688981.SS left
China's own indices flat after a strong start.
.SSEC The dual-listed chipmaker's shares plunged more than 5% in
both Shanghai and Hong Kong. Stocks in Seoul .KS11 climbed 1.2% with local chipmakers
gaining the most, also helped by a fall in the number of daily
COVID-19 infections to its lowest in close to two months. Taiwan
stocks .TWII saw a similar rise.
"The knee-jerk reflex (to the SMIC decision), apart from
caution, may be for Japanese, Korean and Taiwanese chipmakers to
opportunistically benefit from substitution trades," analysts
from Japanese bank Mizuho said in a note.
China's recovery has been among the few bright spots for the
global economy as a second wave of coronavirus infections mounts
in Europe, prompting countries to reimpose restrictions and
quashing hopes that the continent was turning a corner.
"Broadly I would attribute the lift for Asia markets to the
positive data out of China," said Jingyi Pan, senior market
strategist at retail trading platform IG, adding she expected
factory activity (PMI) survey from China on Wednesday to
reinforce the recovery.
Indonesian shares .JKSE , down 0.6%, were again an
exception as COVID-19 curbs were extended in the capital
Jakarta.
Currencies were more of a mixed bag, with most flat to
slightly higher against the dollar, which was little changed.
FRX/
Taiwan's dollar, among the region's strongest performers
this year as its tech-focussed economy benefited from the global
move to stay-at-home working, stood out with an almost 0.7%
rise.
Malaysia's ringgit MYR= , which lost around 1.4% last week,
ticked higher as a victory by the ruling party in a state
election calmed investor nerves after opposition leader Anwar
Ibrahim said he had a majority to oust the government.
However, Malaysia's exports unexpectedly fell in August as
demand for manufacturing, agriculture and mining goods dropped,
narrowing the country's trade surplus from a record high in
July.
** Indonesian 3-year benchmark yields down 9.2 basis points
to 5.073%
** Malaysia's 10-year benchmark yield down 1.79 basis points
to 2.78%
** Top losers on Jakarta's index .JKSE include Star
Pacific Tbk PT LPLI.JK , Asuransi Jiwa Syariah Jasa Mitra Abadi
Tbk PT JMAS.JK and Asuransi Tugu Pratama Indonesia Tbk PT
TUGU.JK

Asia stock indexes and currencies at 0344 GMT
COUNTRY FX RIC FX FX INDEX STOCKS STOCKS
DAILY % YTD % DAILY % YTD %
Japan JPY= +0.25 +3.10 .N225 0.72 -1.20
China CNY=CFXS +0.02 +2.09 .SSEC -0.23 5.31
India INR=IN +0.00 -3.03 .NSEI 0.00 -9.19
Indonesia IDR= +0.03 -6.47 .JKSE -0.61 -21.97
Malaysia MYR= +0.10 -1.82 .KLSE 0.02 -5.00
Philippines PHP= +0.06 +4.56 .PSI 0.21 -25.13
S.Korea KRW=KFTC -0.13 -1.48 .KS11 1.22 4.96
Singapore SGD= +0.12 -2.25 .STI 0.49 -22.91
Taiwan TWD=TP +0.65 +3.50 .TWII 1.51 3.51
Thailand THB=TH -0.28 -5.65 .SETI 0.83 -20.54

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