* Malaysia stocks jump 1.5%
* S. Korea shares at over 3-month high
By Shashwat Awasthi
Aug 24 (Reuters) - Indonesian equities trailed regional
stocks on Tuesday after the government extended its fiscal
deficit financing scheme with the central bank, which has led to
simmering worries around the bank"s independence since last
year.
Other emerging Asian stock and currency markets advanced,
helped by vaccine optimism in the United States and easing
concerns around the Federal Reserve"s policy settings ahead of a
symposium this week.
Stocks in Jakarta fell 0.5% by 0302 GMT after Bank
Indonesia (BI) said late on Monday it would buy government bonds
worth up to 439 trillion rupiah ($30.5 billion) to finance
COVID-19 relief measures.
The scheme is similar to an agreement BI had with the
finance ministry last year to fund ballooning healthcare and
welfare bills amid the pandemic. Economists had earlier raised
concerns about the scheme"s effects on inflation, the rupiah
and BI"s independence.
The rupiah traded 0.2% higher, however, as the news
coincided with a weaker U.S. dollar and Indonesia"s decision to
relax some COVID-19 curbs, while the yield on the 10-year
benchmark bonds fell 6.1 basis points to 6.32%.
The lack of a volatile reaction in the rupiah was also
"perhaps an indication that the market still sees this (bond
buying) programme as one-off," analysts at OCBC said.
"The extension of the BI bond buying program is likely to
be of a pre-emptive nature cushioning against any potential
volatility as and when the Fed tapers, while there may also be
increased needs to support healthcare spending," they said.
Broader sentiment was supported by full approval of the
Pfizer/BioNTech COVID-19 vaccine in the United States
which raised the prospect of accelerating inoculations and drove
Wall Street indexes to record highs.
In Malaysia, where the new Prime Minister took charge over
the weekend, stocks jumped more than 1.5% to their
highest since June 30.
South Korea"s KOSPI was on track for its best day
since May 10 and the won climbed for a second
straight session, ahead of a Bank of Korea policy meeting on
Thursday.
HIGHLIGHTS:
** Indonesian 3-year benchmark yield down 4 basis
points at 4.746%.
** Top gainers on the FTSE Bursa Malaysia Kl index
include Sime Darby Plantation up 5.6%, Sime Darby Bhd
up 3.2%, and Hong Leong Financial Group up
3.1%.
Asia stock indexes and
currencies at 0350 GMT
COUNTRY FX RIC FX FX INDE STOCK STOCK
DAILY YTD % X S S YTD
% DAILY %
%
Japan -0.05 -5.91 <.N2 0.91 1.09
25>
China
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