* Indonesian markets closed for a holiday
* Baht backs down from 30.0 per dollar mark
* Malaysia's Public Bank announces bonus share issue
By Anushka Trivedi
Dec 9 (Reuters) - The Thai baht reversed early gains to
trade flat on Wednesday afternoon, with traders saying the
central bank appeared to have intervened to limit the currency's
appreciation, which it has repeatedly said is negative for the
economy.
The baht THB=TH firmed by up to 0.2% at 29.990 in early
trade, slipping below the 30.0 per dollar mark that Thai
exporters on Tuesday urged the central bank to preserve to
maintain competitiveness.
It retreated in afternoon trade to stand marginally weaker
at 30.060 per dollar, with traders at two local banks saying the
central bank had stepped in to sell dollars. The Bank of Thailand did not immediately respond to Reuters
request for comment.
"There might be some action from the Bank of Thailand to
keep the baht at the 30.0 per dollar level," Poon Panichpibool,
markets strategist at Krung Thai Bank said.
The Thai economy, with its large tourism sector, has been
hammered by the coronavirus crisis, but investment and trade
money have flowed in steadily in recent months, bringing the
baht back close to levels at which it started the year.
With the broad weakness in the dollar in recent months also
playing a major role, cancellation this week of a planned
briefing by the Bank of Thailand on currency measures has added
to volatility.
Poon from Krung Thai Bank said that forecasts suggest the
baht will keep strengthening and that it may prove hard for the
central bank to intervene on a large enough scale to reverse the
trend.
"BoT may try to provide interim relief to slow down the
rise, so exporters can prepare themselves to hedge against the
risk," he said.
Thai markets are closed for public holidays on Thursday and
Friday, and demonstrators plan another protest against the
government in Bangkok on Dec. 10.
Other Asian currencies rose against a softer greenback
.DXY . But the Indian rupee INR=IN failed to capitalise as it
dropped 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 is
expected to 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 surged 2% and Singapore shares
.STI advanced 0.7%, however China stocks .SSEC fell 1% as
concerns over tensions with the United States weighed. .SS
Financial markets in Indonesia were shut for a public
holiday.
HIGHLIGHTS
** Thailand's 10-year government bond yields are down 1.5
basis points at 1.265%
** Public Bank up 8.1%, its highest since Jan. 7
** Top gainers on the Singapore STI .STI : Yangzijiang
Shipbuilding Holdings Ltd YAZG.SI up 2.7% and CapitaLand
Integrated Commercial Trust CMLT.SI up 2.5%
Asia stock indexes and currencies
at 0804 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD %
Japan JPY= -0.05 +4.23 .N225 1.33 13.36
China CNY=CFXS +0.02 +6.62 .SSEC -1.12 10.55
India INR=IN -0.05 -2.96 .NSEI 0.78 10.92
Malaysia MYR= +0.15 +0.62 .KLSE 1.04 3.77
Philippines PHP= +0.24 +5.42 .PSI -1.40 -9.12
S.Korea KRW=KFTC +0.06 +6.60 .KS11 2.02 25.38
Singapore SGD= +0.13 +0.65 .STI 0.73 -11.69
Taiwan TWD=TP +0.02 +5.60 .TWII 0.21 19.95
Thailand THB=TH -0.03 -0.47 .SETI 0.31 -6.10