EMERGING MARKETS-Philippine, Malaysian shares fall; markets eye U.S. data

  • 6/3/2021
  • 00:00
  • 5
  • 0
  • 0
news-picture

* Manila stocks fall more than 1% * China services activity growth slows in May * Investors long on most Asian currencies - Reuters poll * Thai markets shut for holiday By Sameer Manekar June 3 (Reuters) - Losses in Philippine and Malaysian stocks stood out among broadly calm emerging Asian markets on Thursday, while investors awaited U.S. economic data that could influence how long the Federal Reserve maintains its dovish policy stance. Regional currencies were also largely muted, with the Taiwan dollar making the most notable gain of 0.3%, as the U.S. dollar wavered ahead of a weekly unemployment report and monthly jobs data. If the data bolsters confidence in a strong U.S. economic recovery it would further stir up talk of the Fed scaling back support measures earlier than its forecast, which would unsettle Asia"s risk-sensitive markets. The Philippine bourse lost more than 1%, giving up some ground after surging more than 3% in the previous session. The peso was largely unchanged. In Malaysia, which is battling a surge in COVID-19 cases, shares fell about half a percent as the nation recorded its highest daily death toll since the start of the pandemic. The country"s finance minister warned on Tuesday that its 2021 economic growth forecast could be lowered due to new curbs to fight the spread of the virus, which analysts say could weigh on debt instruments. If growth forecast is cut, "projected debt at end-2021 could consequently need to be revised upwards and closer to the 60% of GDP limit," said Duncan Tan, a strategist at Singapore-bank DBS. "That would bring to the fore the possibility of a second increase in debt limit, which could then be viewed slightly unfavourably by bond markets and credit rating agencies." Yields on Malaysia"s 10-year benchmark bonds were down marginally at 3.213% on Thursday. Meanwhile, the region"s top trade partner China saw its services sector expand at a slower pace in May compared with a month ago due to weaker overseas demand and increasing costs for businesses. The yuan, which influences South Korea"s won and Taiwan dollar due to their trade dependence, was largely unchanged, trading in a narrow range since the central bank intervened this week to temper the currency"s rally. Separately, a Reuters poll showed bullish bets on the Chinese yuan hit a near six-month high, and investors were long on most Asian currencies as vaccination programs in the region painted an optimistic picture despite a recent spike in infections. HIGHLIGHTS: ** Indonesia raises $3 bln from global Islamic bonds - official ** Indonesian 10-year benchmark yields fall 3.2 basis points to 6.417% ** Singapore grants China"s Sinovac COVID-19 vaccine special access ($1 = 31.1100 baht) Asia stock indexes and currencies at 0429 GMT COUNTRY FX RIC FX FX INDE STOCK STOCK DAILY YTD X S S YTD % % DAILY % % Japan -0.14 -5.8 <.N2 0.47 5.95 8 25> China 4 EC> India +0.00 -0.0 <.NS 0.57 12.04 3 EI> Indones -0.10 -1.7 <.JK 0.16 1.04 ia 5 SE> Malaysi +0.05 -2.4 <.KL -0.40 -2.19 a 5 SE> Philipp -0.02 +0.5 <.PS -1.08 -5.21 ines 0 I> S.Korea 1 11> Singapo -0.02 -0.1 <.ST 0.13 11.30 re 2 I> Taiwan +0.26 +3.0 <.TW 0.54 17.14 2 II> Thailan 0.00 -3.7 <.SE 0.00 11.61 d 9 TI> (Reporting by Sameer Manekar in Bengaluru; Editing by Simon Cameron-Moore) Our Standards: The Thomson Reuters Trust Principles.

مشاركة :