EMERGING MARKETS-Taiwan leads most Asian shares higher, Malaysia down on COVID-19 hit

  • 5/28/2021
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* Philippines recoups losses, set to post 8% weekly gain * Malaysia reports record spike in daily COVID-19 cases * Taiwan dlr, S. Korean won lead Asian currencies higher By Arundhati Dutta May 28 (Reuters) - Taiwan led most of Asia"s emerging market equities higher on Friday as investors cheered positive U.S. economic data and plans for trillions of dollars in federal spending, while Malaysian shares fell as COVID-19 cases hit a daily record. The region"s currencies held on to gains ahead of U.S. inflation data, with the Taiwan dollar and the South Korean won leading gains against the greenback. On Thursday, the New York Times reported that President Joe Biden will seek $6 trillion in U.S. federal spending for the 2022 fiscal year, while data showed that the number of Americans filing jobless claims dropped more than expected last week. "Asia appears to feel that some of that goody bag will fall their way, and Asian equity markets have risen today," Jeffrey Halley, a senior market analyst at brokerage OANDA, said in a note. Prior to market opening, the People"s Bank of China (PBOC) set the yuan midpoint rate at 6.3858 per dollar, firmer than the previous fix of 6.403. "That has lifted the currencies of neighbouring South Korea and Taiwan...PBOC made it easier for financial institutions to secure off-shore funding for their balance sheets," Halley said. U.S. inflation data due at 1230 GMT on Friday will also be a big focus, as a high reading could fuel expectations of policy tightening by the Federal Reserve. Taiwanese stocks jumped 1.6%, hitting their highest in over two weeks. The island"s first batch of 150,000 COVID-19 vaccine doses, out of more than 5 million ordered from Moderna Inc, is set to arrive on Friday. Philippine shares recouped losses accrued earlier in the session to rise 0.1%. The benchmark is set to gain nearly 8% for the week. Thai stocks jumped 0.4%, extending gains to a third session. The country said it planned more measures to retain jobs and boost domestic consumption, as it struggles with a severe third wave of infections. On the downside, Malaysian stocks dipped as the country reported 7,857 new coronavirus cases in its third straight day of record infections. This raised fears that Malaysia"s tepid domestic recovery will seriously falter, Halley said. "A complete nationwide lockdown cannot be ruled out, with some state rulers urging the federal government to do this," Prakash Sakpal and Nicholas Mapa, analysts at brokerage ING, said in a note. HIGHLIGHTS **Indonesian 10-year benchmark yields are down 1.9 basis points at 6.426% **Thailand"s 3-year benchmark yield is up 1 basis points at 0.57%​​ **Top losers in Malaysia are Hong Leong Financial Group and Supermax Corp Asia stock indexes and currencies at 0651 GMT COUNTRY FX RIC FX FX INDE STOCKS STOCKS DAILY % YTD % X DAILY YTD % % Japan -0.09 -6.06 <.N2 2.1 6.2 25> China EC> India +0.21 +0.86 <.NS 0.61 10.37 EI> Indonesi -0.16 -1.87 <.JK -0.01 -2.31 a SE> Malaysia +0.07 -2.78 <.KL -0.32 -2.36 SE> Philippi +0.15 +0.36 <.PS 0.14 -6.52 nes I> S.Korea 11> Singapor -0.01 -0.23 <.ST 0.64 12.00 e I> Taiwan +0.31 +2.70 <.TW 1.62 14.51 II> Thailand +0.06 -4.19 <.SE 0.39 9.65 TI> (Reporting by Arundhati Dutta in Bengaluru; Editing by Devika Syamnath) Our Standards: The Thomson Reuters Trust Principles.

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