EMERGING MARKETS-Asian FX weaken as virus spread clouds recovery prospects

  • 7/16/2021
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* Baht slips to 15-month low * Indonesia, Thailand, Malaysia report record virus cases * Seoul stocks decline By Anushka Trivedi July 16 (Reuters) - The Thai baht and the Indonesian rupiah led losses among Asian currencies on Friday, as persistently high COVID-19 cases in the region muddied the outlook for recovery in the trade and tourism dependant economies. The baht and the rupiah eased 0.3% each, with the former hitting a 15-month low. The peso, the Singapore dollar and the ringgit traded flat to lower. The greenback weakened slightly during the Asian trading session, limiting losses in the emerging currencies. Malaysia, Indonesia and Thailand reported record coronavirus infections again, while the Philippines detected its first Delta variant case as heavily populated Southeast Asia continues to be hit hard by the pandemic amid a slow vaccination rate. "Worries of another third or fourth (wave) in some of these countries may trigger tighter restrictions pre-emptively," said Maybank senior FX strategist Christopher Wong, as trade-dependant Asia"s major cities like Seoul, Bangkok and parts of Indonesia remain in lockdowns. "Growth momentum, business confidence and investor sentiment can be undermined if lockdowns, restrictions are further prolonged. Risk aversion could see U.S. dollar particularly bid for against Asia ex-Japan currencies now," he added. Faith in the Thai markets is especially weak after the country"s central bank warned of missing annual growth forecasts as its economy relies heavily on tourism, which analysts believe may not be revived by October as per the government"s plan. The benchmark stock index has declined almost 4% over the past five-weeks, while the baht has lost more than 5% weaker during the same period. Malaysian stocks eased 0.3%, while Seoul shares shed 0.6% as South Korea prepared to tighten curbs further. South Korea"s prime minister said more limits on private gatherings may be needed after 1,536 new COVID-19 cases were reported amid the country"s worst outbreak yet. Philippine"s stock index firmed 0.4%, attempting to claw back from a 1.6% drop in the previous session. HIGHLIGHTS ** Indonesian 10-year benchmark yields are down 1.2 basis points at 6.437%​​ ** In the Philippines, top index gainer is PLDT Inc , up 2.1% ** Top losers on FTSE Bursa Malaysia Kl Index include Hartalega Holdings Bhd down 2.8% and Mr DIY Group M Bhd down 2.6% Asia stock indexes and currencies at 0352 GMT COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD % Japan -0.07 -6.09 -0.78 2.24 China -0.06 +0.97 -0.02 2.61 India +0.00 -1.98 0.00 13.89 Indonesia -0.28 -3.31 0.19 1.33 Malaysia +0.05 -4.26 -0.31 -6.83 Philippines -0.02 -4.29 0.44 -5.35 S.Korea -0.01 -4.85 -0.55 13.73 Singapore +0.00 -2.48 0.19 10.63 Taiwan -0.25 +1.86 -0.77 21.46 Thailand -0.21 -8.46 0.02 8.48 (Reporting by Anushka Trivedi in Bengaluru; Editing by Kim Coghill)

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