* 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
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