EMERGING MARKETS-Philippine stocks jump nearly 3%, dovish Fed boosts Asian currencies

  • 5/26/2021
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* Philippine stocks set for best day since Feb. 1 * S. Korean won, Taiwan dlr lead gains * Singapore, Malaysia, Indonesia, Thailand closed By Arundhati Dutta May 26 (Reuters) - Philippine shares were headed for their best day in nearly four months on Wednesday, with much of the region being closed for a holiday, while the U.S. Federal Reserve"s dovish stance on rates boosted Asia"s emerging currencies. The South Korean won led the region"s gains with a 0.5% rise, followed by the Taiwan dollar, up 0.3%, as the dollar wallowed around January lows. U.S. Federal Reserve officials continued to insist on Tuesday that monetary policy would stay accommodative despite inflationary pressures, weighing on the dollar and U.S. Treasuries. [USN?] The Philippine benchmark index surged 2.9%, its biggest intraday jump since Feb. 1. Large cap industrial and real estate stocks drove most of the gains, with Megaworld Corp adding 2%, while Ayala Corp jumping 3.2%. Philippine equities are the worst hit across Asia so far this year, down nearly 11% in 2021 as of last close. Neighbouring Singapore, Malaysia, Indonesia and Thailand markets were closed for a holiday. Stocks in Taiwan edged higher, while South Korean shares dipped. Bank of Korea"s rate decision is expected on Thursday, where it is seen keeping interest rates at record lows for the rest of 2021 to combat COVID-19 uncertainties and worries about financial imbalances offset signs of a broader economic recovery. HIGHLIGHTS: ** Industrial and real estate sectors drive Philippine shares higher **Philippine 10-year benchmark yield is unchanged at 3.951%P Asia stock indexes and currencies at 0706 GMT COUNTRY FX RIC FX FX INDE STOCKS STOCKS DAILY % YTD % X DAILY YTD % % Japan -0.09 -5.16 <.N2 #VALUE #VALUE 25> ! ! China EC> India - +0.41 <.NS 0.54 9.37 EI> Indonesi - -1.99 <.JK - -2.73 a SE> Malaysia - -2.90 <.KL - -3.04 SE> Philippi -0.07 -0.24 <.PS 2.33 -11.18 nes I> S.Korea 11> Singapor - -0.21 <.ST - 10.63 e I> Taiwan +0.27 +2.45 <.TW 0.29 12.97 II> Thailand - -4.43 <.SE - 8.23 TI> (Reporting by Arundhati Dutta in Bengaluru; Editing by Rashmi Aich)

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