EMERGING MARKETS-Malaysian shares up on budget passage, Indonesia hits over 10-month high

  • 12/16/2020
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* Graphic: World FX rates tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks tmsnrt.rs/3lKhL5I * S. Korea shares end at record high * Indonesian shares hit highest level since Jan 30 * Currency investors await Fed meeting outcome By Shriya Ramakrishnan Dec 16 (Reuters) - Emerging stock markets in Asia gained on Wednesday with Malaysia rising for a second straight session after the 2021 budget got approval in parliament, lifting hopes of a faster recovery for the third-largest economy in Southeast Asia. The Malaysian stock index has gained roughly a third in value since hitting lows in March"s coronavirus-driven selloff and a 1.3% rise in morning trade meant it is now up almost 6% for the year. The recovery, driven by hopes of a global economic bounce next year, has gained pace in Asia in the final weeks of 2020, even as the United States and Europe struggled with fresh COVID-19 infections. The budget vote in Malaysia also aids Prime Minister Muhyiddin Yassin, whose eight months in office have been beset by coalition infighting and a leadership challenge from opposition leader Anwar Ibrahim. The budget included a record 322.5 billion ringgit ($79.53 billion) in spending next year to kick-start growth. "We expect 2021 to be a better year for the market...additional liquidity from the government stimulus announced in Budget 2021 could help boost retail interest," analysts at trading firm CGS CIMB wrote in a note. Malaysia"s gains, however, trail behind several regional peers. Buoyed by this year"s "stay-at-home" boom in tech spending, South Korea and Taiwan"s markets are up 26% and 19%, respectively, since January, while those in India and China have gained more than 10%. That has led to concerns that speculative capital inflows will cause unwanted gains for currencies across the region, leading a number of central banks to intervene in markets or take other steps to cap appreciation. The Malaysian ringgit, Indonesian rupiah and Thai baht dipped against a globally weaker dollar in afternoon trade, while the Philippine peso, Singapore dollar and Indian rupee edged higher. Indonesian shares, still down 3% on the year, gained 1.6% to their highest since Jan. 30, ahead of a central bank meeting on Thursday that is expected to keep interest rates unchanged. South Korean shares closed at a record high, as investors cheered a pledge from the country"s prime minister to secure more hospital beds to cope with the worst outbreak since the start of the pandemic. South Korean bonds faced an outflow of $823 million in November, lagging its peers in Indonesia and Thailand, whose bond markets lured inflows of $1.1 billion and $941 million, respectively. HIGHLIGHTS: ** Malaysia"s 10-year benchmark yield is down 3.59 basis points at 2.721% ** Top gainers on the Jakarta stock index include Zebra Nusantara Tbk PT up 34.67% at 101 rupiah, Apexindo Pratama Duta Tbk PT up ​ 25% at 530 rupiah ** In the Philippines, top index gainers are Megaworld Corp up 3.02% at 4.1 peso, Universal Robina Corp up 2.92% at 158.5 peso Asia stock indexes and currencies at 0733 GMT COUNTRY FX RIC FX FX INDEX STOCK STOCKS DAILY YTD % S YTD % % DAILY % Japan +0.22 +5.01 0.26 13.11 China India +0.12 -2.95 0.43 11.97 Indonesi -0.07 -1.56 1.63 -3.04 a Malaysia -0.07 +0.84 0.50 5.90 Philippi +0.08 +5.43 1.00 -6.60 nes S.Korea Singapor +0.13 +1.05 0.44 -10.97 e Taiwan +1.14 +6.99 1.68 19.23 Thailand -0.02 -0.45 0.11 -6.39 ($1 = 4.0550 ringgit) (Reporting by Shriya Ramakrishnan in Bengaluru; Editing by Arun

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