EMERGING MARKETS-Malaysia, Thai shares defy broader Asia rally on virus woes

  • 7/12/2021
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* China stocks lead regional rally * Japan"s Nikkei has best day in nearly 3 weeks * Philippine peso remains under pressure * Graphic: World FX rates tmsnrt.rs/2RBWI5E * Asian stock markets: tmsnrt.rs/2zpUAr4 By Shashwat Awasthi July 12 (Reuters) - Stocks in Malaysia and Thailand slipped on Monday, failing to catch a broader rally in Asian markets, as the investor mood in both the regions shifted to caution over rising coronavirus cases and their potential impact on economic growth. Malaysia"s main equity index dipped 0.4% and yield on 10-year benchmark bonds rose more than 6 basis points after the country reported two consecutive days of record virus cases. The baht was hovering near a 15-month low, while Thai stocks dipped up to 0.3%, after Thailand saw record COVID-19 cases over the weekend including infected medical workers who received two doses of China"s Sinovac vaccine . Markets were further discouraged after the Bank of Thailand warned the economy could grow less than forecast, at a time when surging infections and deaths have cast doubt over the nation"s plans to reopen to tourists this year. "PM Prayuth"s mid-October deadline to fully reopen Thailand to vaccinated tourists looks to be at threat now, given the recent surge in domestic cases," analysts at Maybank wrote in a note to clients. With Indonesia and the Philippines also struggling to contain the virus in recent months, a sustained economic recovery remains a challenge for Southeast Asia. "A key realization is that for most of EM Asia (ex-China) a fuller and unfettered recovery from COVID will be delayed until 2022," analysts at Mizuho bank said, also pointing to a lagging vaccine rollout. Most regional share markets tracked Chinese equities higher on Monday after Beijing"s policy easing last week, while investors awaited a slew of Chinese data and U.S. inflation figures, which could throw light on the Federal Reserve"s view on early tapering. Indonesia"s benchmark index rose as much as 0.9%, before paring some gains to trade 0.7% higher after the central bank cut forecast for 2021 economic growth. Most Asian currencies strengthened against the dollar, though the peso weakened 0.2% as the Philippine central bank committed to an accommodative monetary policy and a market-determined foreign exchange rate. Stocks in Manila added 1.2% after coronavirus curbs in parts of the Philippines were relaxed on Friday. HIGHLIGHTS: ** Malaysia"s 10-year benchmark yield is up 6.4 basis points at 3.258%. ** Top gainers on the Jakarta stock index include Allo Bank Indonesia up 25%, Tira Austenite up 25%, and Bank Bumi Arta up 22.77%. ** Top losers on FTSE Bursa Malaysia Kl Index include Mr DIY Group M down 2.19%, Hartalega Holdings down 1.83%, and IOI Corporation down 1.34%. Asia stock indexes and currencies at 0646 GMT COUNTRY FX RIC FX FX INDE STOCK STOCK DAILY YTD % X S S YTD % DAILY % % Japan -0.03 -6.29 <.N2 2.25 4.10 25> China EC> India +0.24 -1.87 <.NS 0.53 12.81 EI> Indones +0.28 -3.07 <.JK 0.77 1.80 ia SE> Malaysi +0.02 -4.01 <.KL -0.29 -6.83 a SE> Philipp -0.20 -4.13 <.PS 1.16 -3.16 ines I> S.Korea 11> Singapo -0.09 -2.28 <.ST 0.28 10.42 re I> Taiwan +0.30 +1.71 <.TW 0.87 20.92 II> Thailan -0.12 -8.10 <.SE -0.03 7.06 d TI> (Reporting by Shashwat Awasthi, Editing by Sherry Jacob-Phillips) Our Standards: The Thomson Reuters Trust Principles.

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