🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

EMERGING MARKETS-Yuan anchors Asian FX as caution spikes ahead of U.S. election

Published 10/30/2020, 03:29 PM
Updated 10/30/2020, 03:30 PM
© Reuters.
USD/JPY
-
USD/SGD
-
JP225
-
USD/MYR
-
USD/PHP
-
KLSE
-
KS11
-
TWII
-
SSEC
-
SETI
-
PSI
-
AEV
-
STI
-
JGS
-
CAPD
-
UTOS
-

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I
* Yuan rises nearly 0.5% on China's new 5-year plan
* South Korean won top gainer for October, up 3%
* Philippine stocks end with near 8% monthly gain
* Malaysia cenbank meet, 2021 budget in focus next week
* Indian and Indonesian forex markets shut due to local
holidays

By Rashmi Ashok
Oct 30 (Reuters) - Strong gains in the Chinese yuan
supported most Asian currencies on Friday, shielding them from a
broader gloomy mood weighing on regional equities ahead of the
U.S. presidential election.
Worries about the outcome of Tuesday's election have
remained at the fore, given the stark difference between
Democratic candidate Joe Biden and President Donald Trump's
views on foreign policy and trade, particularly towards Asia.
The yuan CNY=CFXS jumped 0.5% against the dollar after
China's leaders endorsed a new five-year plan to drive sustained
economic growth, which markets believe will require a stronger
currency.
That helped boost the closely tied Singapore dollar SGD=
by 0.2%, while the Thai baht THB=TH rose by a similar margin.
While cases are surging elsewhere, the COVID-19 situation in
Asia remains largely under control, with China's swift economic
recovery driving the resilience of the yuan and other Asian
currencies, said Sim Moh Siong, FX strategist at Bank of
Singapore.
"The second factor is the U.S. elections. If Biden wins, and
polls are indicating he's in the lead, it could lead to a less
aggressive trade policy, further anchoring the yuan," he added.
"For Asia, overall, the risk environment is going to be
cautious, but there's no panic."
The region's equities were subdued after Wall Street's
sell-off as cases continued to surge in the United States, while
fears of more lockdowns across Europe, following France and
Germany's moves this week, also dented the mood.
For October, most Asian currencies were set to end higher,
with the South Korean won KRW=KFTC logging its best monthly
performance since June 2019, with a 3% gain.
Most stock markets, however, were set to end the month with
losses. The Thai index .SETI was on track for a 3.4% drop
sparked by political ructions and protests.
Philippines' equities .PSI , in contrast, breezed past
peers with an 8% gain, as a the gradual reopening of the economy
and upbeat COVID-19 case trends spurred investor confidence.
In the week ahead, the focus will turn to Malaysia's central
bank policy meeting on Tuesday, followed by the government's
2021 budget presentation on Friday.
The latter is seen as a key test to gauge support the prime
minister wields amid recent political tensions, with fears
prevalent that the budget bill might not get through parliament
given the slim coalition majority his government holds.
The Indian currency market was shut on Friday for a local
holiday, while in Indonesia, both equities and forex markets
were closed.

HIGHLIGHTS
** In the Philippines, top index gainers were Aboitiz Equity
Ventures Inc AEV.PS , up 5.82%, and JG Summit Holdings Inc
JGS.PS , up 3.71%.
** Top losers on the Singapore index .STI include UOL
Group Ltd UTOS.SI , down 3.72%, and Ascendas Real Estate
Investment Trust AEMN.SI , down 3.33%.
** Singapore's 10-year benchmark yield is down 0.2 basis
point at 0.831%​​ and the 5-year benchmark yield is up 0.2 basis
point at 0.498%​​


Asia stock indexes and
currencies at 0650 GMT
COUNTRY FX RIC FX FX INDEX STOCK STOCK
DAILY YTD % S S YTD
% DAILY %
%
Japan JPY= +0.29 +4.12 .N225 -1.52 -2.87
China .SSEC -1.61 5.57
S>
Malaysi MYR= -0.10 -1.66 .KLSE -1.23 -7.05
a
Philipp PHP= -0.04 +4.66 .PSI 1.19 -19.0
ines 8
S.Korea .KS11 -2.56 3.16
C>
Singapo SGD= +0.10 -1.55 .STI -1.00 -24.7
re 2
Taiwan TWD=TP +1.05 +5.21 .TWII -0.92 4.58
Thailan THB=TH +0.16 -4.10 .SETI -0.57 -24.3
d 7


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.