EMERGING MARKETS-Thai stocks pare gains as c.bank holds rates, flags recovery risks

  • 2/3/2021
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* Graphic: World FX rates tmsnrt.rs/2RBWI5E * Thai c.bank holds key rate at record low 0.50% * India, S. Korea gain over 1% each By Shruti Sonal Feb 3 (Reuters) - Thai stocks pared some gains on Wednesday after the central bank held its key interest rate but warned that the resurgence in COVID-19 cases could hinder the country"s economic recovery. The benchmark, which had climbed as much as 0.9% earlier in the day, was trading flat by 0827 GMT. The baht was little changed. The Bank of Thailand kept the rate unchanged in a widely expected move but warned that the tourism-reliant economy could grow less than earlier forecast this year, with fewer foreign tourists coming in than previously predicted. Analysts have raised concerns about setbacks to a revival in consumption and tourism amid a resurgent COVID-19 cluster in the country since December last year. "As of now, we expect the GDP growth for 2021 to be just 2.2% with a higher probability of further revision downward to below 2% growth due to delayed vaccine distribution and clouded tourism outlook," Poon Panichpibool, markets strategist at Krung Thai Bank said. In such a scenario, the government will need to take more stimulus measures and spend around 300 billion baht to 400 billion baht ($10.0 billion to $13.3 billion) during the year, said San Attarangsan, an economist at ‎Kasikornbank. Most other stock markets in the region posted gains, taking positive cues from a Wall Street rally overnight on renewed hopes for U.S. President Joe Biden"s proposed $1.9 trillion COVID-19 aid bill. South Korea and India each climbed over 1%, while the Indonesian, Singaporean and Malaysian indexes added 0.5%. However, concerns over economic growth in the region lingered. A private sector survey showed China"s services sector activity grew at its slowest pace in nine months in January, while a Reuters poll suggested Indonesia is expected to post its first annual contraction in gross domestic product (GDP) since 1998 on Friday. Philippine stocks, which clocked in gains of about 4% in the last two sessions, bucked the trend to shed 0.1%. Highlights: ** Singapore"s 10-year benchmark yield is up 3.8 basis points at 1.091% ** In the Philippines, top index losers are Robinsons Retail Holdings Inc; PLDT Inc; Globe Telecom Inc ** Yoma Strategic shares fall to lowest since May after Myanmar coup Asia stock indexes and currencies at 0840 GMT COUNTRY FX RIC FX FX INDE STOCKS STOCK DAILY YTD % X DAILY S YTD % % % Japan -0.05 -1.69 <.N2 1.00 4.38 25> China EC> India +0.05 +0.20 <.NS 1.37 6.20 EI> Indones +0.14 +0.29 <.JK 0.56 1.65 ia SE> Malaysi -0.05 -0.62 <.KL 0.49 -2.39 a SE> Philipp -0.22 +0.03 <.PS -0.12 -3.93 ines I> S.Korea 11> Singapo +0.00 -0.86 <.ST 0.60 3.20 re I> Taiwan +0.04 +0.37 <.TW 0.07 7.05 II> Thailan -0.10 -0.13 <.SE -0.01 2.53 d TI> (Editing by Devika Syamnath)

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