(.)
* Indonesian markets closed for a holiday
* Baht hovers near key support level
* Malaysia's Public Bank announces bonus share issue
By Anushka Trivedi
Dec 9 (Reuters) - The Thai baht hit a near one-year high on
Wednesday as traders sold dollars amid expectations that the
Bank of Thailand will intervene to stem the currency's rapid
rise, while Malaysian equities jumped more than 1%, lifted by
Public Bank.
The baht THB=TH firmed 0.2% to 30.04 against the dollar
and has now recouped most of its losses made this year since a
breakthrough in coronavirus vaccine in November brightened the
outlook for the trade and tourism-reliant Thai economy.
The Bangkok index .SETI is on track to gain over 2% in two
sessions after the country eased curbs on tourist arrivals,
while foreign equity inflows have added to the baht's strength,
which Thai exporters on Tuesday urged the central bank to curb
at 30.0 per dollar mark. "There was 'panic USD selling' among exporters once baht
rose beyond 30.15 on expecting support from Bank of Thailand ...
and given no currency briefing by BoT as previously expected,
some exporters may be in wait and see mode and could rush to
sell dollars more once baht rises above 30 level," said Poon
Panichpibool, markets strategist at Krung Thai Bank.
The Bank of Thailand, which cancelled a planned briefing on
currency measures, may not intervene at this level but could use
unconventional tools like quantitative easing as well as debt
monetisation to limit the baht's gains, Poon added.
Other Asian currencies rose against a softer greenback
.DXY , with the Taiwanese dollar TWD=TP leading gains at 1%
stronger.
However, the Indian rupee INR=IN failed to capitalise,
dropping 0.1%, on suspicions the country's central bank was
mopping up inflows to prevent its rise. In the equity markets, Malaysia's index .KLSE scaled a
16-month peak after the country's second-largest lender Public
Bank Bhd PUBM.KL announced a bonus share issue, which
brokerage MIDF Research said would improve the bank's liquidity
and the stock's affordability. Positive sentiment from a strong finish at Wall Street on
progress in coronavirus vaccines spilled over to Asia as most
stock markets made big gains.
South Korea's KOSPI .KS11 rose 1.4% and Singapore shares
.STI advanced 0.6%.
Financial markets in Indonesia were shut due to a public
holiday.
HIGHLIGHTS
** Public Bank Bhd PUBM.KL up 8.9%, its highest since Jan.
7
** Thailand's 10-year government bond yields are down 1.5
basis points at 1.265%
Asia stock indexes and
currencies at 0453 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD %
Japan JPY= +0.02 +4.30 .N225 1.15 13.17
China CNY=CFXS +0.10 +6.70 .SSEC 0.06 11.87
India INR=IN -0.08 -2.99 .NSEI 0.58 10.70
Malaysia MYR= +0.15 +0.62 .KLSE 0.96 3.69
Philippin PHP= +0.23 +5.41 .PSI -0.66 -8.43
es
S.Korea KRW=KFTC +0.33 +6.90 .KS11 1.55 24.80
Singapore SGD= +0.23 +0.75 .STI 0.57 -11.83
Taiwan TWD=TP +1.05 +6.68 .TWII 0.25 19.99
Thailand THB=TH +0.17 -0.27 .SETI 0.03 -6.36
(Editing by Stephen Coates)