* Taiwan stocks post biggest jump in 3 months
* S. Korean, Indonesian and Thai stocks up 1%
* Focus now on Bank of Korea decision later this week
By Arundhati Dutta
Aug 23 (Reuters) - Taiwan stocks soared over 2% on Monday,
as the island rolled out its first locally developed COVID-19
vaccine, while Indonesian rupiah led gains across Asia on hopes
that COVID-19 curbs in its capital Jakarta would not be
extended.
Currency markets strengthened after Dallas Federal Reserve
President Robert Kaplan, among the U.S. central bank"s most
forceful supporters for starting to reduce support for the
economy, said on Friday he may need to adjust that view if the
Delta variant slows economic growth materially.
"Fears of a sharp global growth de-rating and/or faster than
expected Fed normalisation may be overdone... a case of Fed
deferring its announcement to taper could see USD ease off,"
Maybank analysts said in a note.
Equity markets across the region rebounded from last week"s
sell-off, while investors also eyed Federal Reserve Chair Jerome
Powell"s speech at Jackson Hole later this week for more clarity
on stimulus tapering.
The Indonesian rupiah added 0.3% and equities
gained 1%. Jakarta"s deputy governor said the city had reached
"herd immunity", ahead of an expected decision by the president
on whether to extend COVID-19 curbs.
South Korea"s benchmark stock index, which has
fallen in 10 of the last 12 sessions, gained 1%, while the won
was flat ahead of a central bank meeting this week.
The Bank of Korea gave strong indications last month that
its run of pandemic era, record-low interest rates was coming to
an end, which would make it Asia"s first central bank to hike
rates.
However, "daily new COVID-19 cases are currently at an
all-time high and that may dampen some hawkish sentiment going
into the meeting," Yeap Jun Rong, a market strategist at IG,
said in a note.
The Philippine peso hit a nearly three-week high,
supported by reassurances from the central bank that there would
be no near-term changes to current record-low policy rates.
The country also approved the emergency use of Russia"s
Sputnik Light COVID-19 vaccine.
Taiwanese stocks posted their best day in three
months on signs of progress in vaccinations.
Thai stocks hit a more than one-month high, after
data showed that July exports rose more than expected, even as
the country struggled with a surge in COVID-19 infections.
HIGHLIGHTS
** Singapore"s 5-year benchmark yield up 0.6 basis points at
0.804%
** Philippine 10-year benchmark yield unchanged at 4.19%
** Indonesian 3-year benchmark yields up 3.2 basis points at
4.786%
Asia stock indexes and currencies
at 0724 GMT
COUNTRY FX RIC FX FX INDE STOCKS STOCKS
DAILY % YTD % X DAILY YTD %
%
Japan -0.15 -6.11 <.N2 1.78 0.18
25>
China
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