EMERGING MARKETS-Asian FX gain on weaker dollar, Indian shares gain on ICICI Bank boost

  • 4/26/2021
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* Graphic: World FX rates tmsnrt.rs/2RBWI5E * Asian stock markets: tmsnrt.rs/2zpUAr4 * Asian currencies strengthen on weaker U.S dollar * Indian shares climb after ICICI Bank posts strong results * Investors look ahead to Fed meeting later this week By Harish Sridharan April 26 (Reuters) - Asian currencies gained on Monday as the dollar weakened on bets the U.S. Federal Reserve will retain an accommodative monetary policy at its meeting later this week, while Indian shares were boosted by robust results from a major lender. The greenback slipped to a two-month low amid speculation U.S. Federal Reserve Chairman Jerome Powell will shun talk of tapering bond purchases at a policy meeting on Wednesday. "The Fed has stated that it will maintain its accommodative monetary policy stance for some time, providing these countries (EM Asia) with some breathing space in terms of further policy easing. The Federal Open Market Committee meeting this week will provide more colour on the subject," analysts at Mizuho said in a note. Indian shares traded 1.3% firmer after a lacklustre performance last week, with sentiment boosted by a 6.2% jump in shares of private-sector lender ICICI Bank, which reported a more than three-fold surge in March-quarter profit. The results helped offset otherwise weak sentiment in the region, as the country set a global record for a rise in daily COVID-19 cases for a fifth consecutive day, amid severely strained healthcare facilities and widespread curbs on activities. Singapore"s manufacturing output for March increased 7.6% from last year, but fell 1.7% against the prior month and missed an estimate of 2.2% growth. Shares and the Singapore dollar were largely unchanged after the announcement. A strong lead from Wall Street overnight boosted broader equities in Southeast Asia, with shares in Malaysia gaining and Taiwan scaling yet more record highs. Thai stocks lagged peers, after the country"s central bank on Sunday warned it is likely to slash its economic growth outlook for this year and next due to a rapidly spreading third wave of COVID-19 infections. "Overall sentiment looks bearish on the domestic front amid growing worries over the third wave of the COVID-19 pandemic," analysts at Philip Research (Thailand) said in a note. Elsewhere, the Turkish lira dipped in early trading to near an all-time low as a chill settled on relations with the United States and after the country"s new central bank chief signalled rate hikes would harm the economy. Highlights ** Top gainer on the Taiwan SE Weighted Index was Space Shuttle Hi-Tech Co Ltd, up 10.0% ** Top gainer on FTSE Bursa Malaysia Kl Index was Supermax Corporation Bhd, up 5.04% ** The biggest gainers in the NSE index were ICICI Bank Ltd and State Bank of India, up 4.96% and 2.96%, respectively Asia stock indexes and currencies at 0509 GMT COUNTRY FX RIC FX FX INDE STOCKS STOCK DAILY YTD % X DAILY S YTD % % % Japan +0.19 -4.14 <.N2 #VALUE #VALU 25> ! E! China EC> India +0.27 -2.33 <.NS 1.33 3.93 EI> Indones +0.17 -3.14 <.JK -0.60 0.03 ia SE> Malaysi +0.15 -1.98 <.KL 0.47 -0.69 a SE> Philipp -0.21 -0.66 <.PS 0.18 -10.5 ines I> 1 S.Korea 11> Singapo +0.08 -0.34 <.ST 0.08 12.40 re I> Taiwan +0.54 +1.87 <.TW 1.39 19.06 II> Thailan -0.03 -4.68 <.SE 0.14 7.34 d TI> (Reporting by Harish Sridharan in Bengaluru; Editing by Lincoln Feast.)

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