EMERGING MARKETS-Indonesian stocks, rupiah extend falls as COVID-19 cases spike

  • 6/21/2021
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* Indonesian stocks down for 4th straight day * Taiwan stocks eye worst session in more than a month * Graphic: World FX rates tmsnrt.rs/2RBWI5E * Asian stock markets: tmsnrt.rs/2zpUAr4 By Harish Sridharan June 21 (Reuters) - Indonesian shares and the rupiah eased on Monday, extending the prior week"s sharp losses, as the country struggles to contain spiking coronavirus infections, while other regional currencies fell as the U.S. dollar hovered near two-month peaks. Indonesia on Sunday reported its highest daily cases since Jan. 30, while the country"s COVID-19 task force also reported the highest number of daily fatalities since early April. Jakarta stocks, which fell 1.5% last week despite Bank Indonesia"s dovish messages, shed 0.8% and were set for their fourth straight session of losses. The rupiah weakened as much as 0.6% to hit its lowest since May 3. "Earlier last week, Indonesia imposed stricter capacity limits given the spike in cases. These could get worse if the outbreak continues to grow," said Daniel Dubrovsky, a strategist at IG Group. "Combined with the shift in the Fed"s tone, it is not shaping up too well for regional sentiment. That is also being reflected in a weaker rupiah." The U.S. Federal Reserve surprised markets last week by signalling sooner-than-expected interest rate hikes, fuelling risk aversion in emerging Asian markets. "This is a risk for emerging markets because it could send capital flows moving outward instead of inward. A stronger U.S. dollar and higher rates could make foreign debt repayments more difficult," Dubrovsky said. Most regional equity markets fell, taking their cue from a sharp fall on Wall Street on Friday, with stocks in Malaysia , Singapore and Thailand all sliding more than 1%. Philippine stocks marked their fourth straight session of losses, even as the country"s central bank insisted last week it had enough measures to counter any macroeconomic fallout from a shift in the Fed"s policy. Taiwan stocks skidded as much as 1.7% and are set for their worst session in more than a month. However, the island is expected to report a 15th straight month of gains in export orders for May later on Monday, a Reuters poll showed. HIGHLIGHTS: ** Top loser on the Jakarta stock index was Nusantara Pelabuhan Handal Tbk PT, down 7% ** Top loser on the Singapore STI was Hongkong Land Holdings Ltd, down 2.98% Asia stock indexes and currencies at 0421 GMT COUNTRY FX RIC FX FX INDE STOCKS STOCK DAILY YTD % X DAILY S YTD % % % Japan +0.36 -5.97 <.N2 -3.59 1.80 25> China EC> India +0.00 -1.08 <.NS -0.72 11.36 EI> Indones -0.21 -2.50 <.JK -0.76 -0.29 ia SE> Malaysi -0.22 -3.04 <.KL -1.07 -3.39 a SE> Philipp -0.35 -1.36 <.PS -0.34 -4.37 ines I> S.Korea 11> Singapo -0.01 -1.88 <.ST -1.15 9.29 re I> Taiwan -0.53 +1.87 <.TW -1.41 15.89 II> Thailan -0.38 -5.07 <.SE -1.05 10.12 d TI> (Editing by Jacqueline Wong) Our Standards: The Thomson Reuters Trust Principles.

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