Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

EMERGING MARKETS-Taiwan leads losses as Asian markets fall on inflation anxiety

Stock MarketsMay 12, 2021 16:20
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

* Graphic: World FX rates
* Graphic: Foreign flows into Asian stocks
* Taiwan stocks mark worst session since March 19, 2020
* Taiwan finmin steps in to calm equity markets
* Philippine keeps rates at record low

By Rashmi Ashok
May 12 (Reuters) - Taiwan stocks closed 4% lower on
Wednesday and clocked their worst day in more than a year as
authorities mulled tighter restrictions to tackle COVID-19
cases, while other Asian equities fell on concerns of growing
U.S. inflationary pressure.
Equities in Taipei .TWII pulled back from early losses of
nearly 8.6% while the Taiwan dollar TWD=TP recovered to hold
steady after the country's deputy finance minister stepped in to
call for calm, saying the stock market's fundamentals were
Risk appetite took a beating after health authorities said
they may raise the country's COVID-19 alert level in "coming
days", which would mean closure of non-essential businesses,
after a cluster of six new cases with no clear infection source
was found.
Even a small number of cases poses a huge challenge for the
island that has kept a tight lid on community outbreaks.
As of April-end, Taiwan stocks rose more than 100% from
their lowest levels in March last year, buoyed by strong demand
for the country's chips and electronics exports as the
work-from-home shift boosted demand for home electronics.
The Philippine central bank kept its benchmark interest
rates unchanged at a record low, as widely expected, in a bid to
support economic recovery amid a recent spike in COVID-19 cases.
Shares closed 1.4% lower at six-month low prior to the
decision. Currencies and stocks in export-focused nations fell most,
with shares in Seoul .KS11 slipping 1.5% and the won
KRW=KFTC weakening 0.5%. Thai equities .SETI lost 0.8% and
the Thai baht THB=TH weakened 0.3%.
Despite various U.S. Federal Reserve officials reiterating a
firmly dovish policy stance, investors worried that higher
inflation from a spike in commodity prices could force the Fed
to raise interest rates. U.S. inflation data due later in the
day also added to nerves.
"Markets are calling the Fed's bluff, fearing that it may
need to hike rates more quickly and aggressively than expected.
The U.S. CPI release will be a big focus for more clues," said
Mitul Kotecha, chief EM Asia and Europe strategist at TD
"Should the Fed hint at an earlier taper, it would likely
put pressure on Asian markets, with a likely firmer dollar
weighing on Asian FX and higher U.S. yields pressurising Asian
local currency bonds and equities," Kotecha said.
Indonesian markets were closed for the Eid festival. Markets
in India, Malaysia and Singapore will also be on holiday on
Thursday for the festival.

** Thailand's 10-year government bond yields are down 1.5
basis points at 1.67%​​
** In the Philippines, top index losers are Megaworld Corp
MEG.PS , which dropped 5.37%, and Metro Pacific Investments
Corp MPI.PS that fell 4.46%
** Top losers on FTSE Bursa Malaysia Kl Index .KLSE
include Telekom Malaysia Bhd TLMM.KL , down 2.42%, and Sime
Darby Plantation Bhd SIPL.KL that slipped 2.36%

Asia stock indexes and
currencies at 0808 GMT
% %
Japan JPY= -0.16 -5.09 .N225 -1.61 2.56
China .ssec="" 0.61="" -0.30 S>
India INR=IN -0.15 -0.52 .NSEI -0.52 5.66
Malaysia MYR= -0.19 -2.52 .KLSE 0.31 -2.75
Philippines PHP= +0.10 +0.46 .PSI -1.43 -12.65
S.Korea .ks11="" -1.49="" 10.03 C>
Singapore SGD= -0.20 -0.53 .STI -0.70 9.79
Taiwan TWD=TP -0.01 +1.89 .TWII -4.11 7.94
Thailand THB=TH -0.26 -3.88 .SETI -0.79 8.08

(Editing by Sherry Jacob-Phillips)

EMERGING MARKETS-Taiwan leads losses as Asian markets fall on inflation anxiety

Related Articles

AbbVie Shares Rise After FDA Approves Arthritis Drug
AbbVie Shares Rise After FDA Approves Arthritis Drug By - Jan 15, 2022

By Sam Boughedda — Shares of AbbVie Inc (NYSE:ABBV) rose 1.8% Friday after the company's arthritis drug was approved by the U.S. Food and Drug Administration. The...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email