EMERGING MARKETS-Most Asian equities, currencies firm as Fed taper fears wane

  • 8/30/2021
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* South Korean won, Indonesian rupiah appreciate * Malaysian ringgit scales near 2-month peak * India June-qtr GDP growth likely hit record high - Reuters poll By Sameer Manekar Aug 30 (Reuters) - Most Asian emerging stock markets gained on Monday, led by Indonesia, India and Singapore, as U.S. Federal Reserve chief Jerome Powell"s remarks at the Jackson Hole Symposium calmed fears over the tapering timetable. Among currencies in the region, South Korea"s won and the Malaysian ringgit led the rise while the Indian rupee also logged strong gains, as the dollar nursed losses here after Powell laid out on Friday a slower-than-expected path to rate hikes. The won rose as much as 0.6%, while the ringgit touched a near two-month high. "Focus shifts to the U.S. employment report, as markets look for evidence of substantial further progress toward maximum employment," analysts at Barclays said in a note. Barclays expects U.S. non-farm payrolls, due on Friday, to rise a "healthy" 850,000 jobs in August compared with 943,000 jobs in July. Equities in Thailand advanced as much as 1.4% to hit their highest since mid-June, while Singapore shares added up to 0.9%. India"s Nifty 50 hit a record high, advancing more than 1% in its sixth consecutive session of gains, a day ahead of the June-quarter economic growth data. A Reuters poll showed India"s economic growth likely touched a record high in the quarter through June, reflecting a very weak base last year and a rebound in consumer spending. "However, large year-on-year growth rates mask the underlying weakness caused by the latest COVID-19 outbreak. Maybe not so much in Australia, but certainly in India, where the second wave of the outbreak spread over most of the second quarter and was far deadlier than the last year," analysts at ING said in a quote. The Dutch bank expects India"s economy to have grown 17.1% from last year in the three months ended June 30. The rupee firmed 0.4% to hit its highest since mid-June as the country attracted foreign direct investment inflows of $22.53 billion during the April-June quarter, 90% higher than a year earlier. Malaysia"s new prime minister unveiled his cabinet last week, retaining the finance minister and others from the previous administration in the hope of restoring political stability as the country faces rising COVID-19 infections. That supported the ringgit as well as local equities , which extended gains into a seventh session, adding about 1% to hit a four-month high. Indonesia"s rupiah firmed as much as 0.3% to a three-week high, while equities jumped more than 1%. In Thailand, the baht appreciated 0.6% to hit its highest since July 8. Data showed Thailand"s manufacturing output in July grew 5.12% from last year, but at a slower pace than a Reuters poll forecast of 11% growth. Markets in the Philippines were closed for a holiday. HIGHLIGHTS: ** Indonesian 10-year benchmark yields fall as much as 3.3 basis points to 6.133% ** Singapore dollar the outlier in the region, slips about 0.2% ** Bearish bets soften on Asian FX as U.S. dollar eases - Reuters poll Asia stock indexes and currencies at 0722 GMT COUNTRY FX RIC FX FX INDE STOCK STOCK DAILY YTD X S S YTD % % DAILY % % Japan +0.01 -5.9 <.N2 0.5 1.26 9 25> China 2 EC> India +0.35 -0.4 <.NS 0.95 20.62 9 EI> Indones +0.31 -2.3 <.JK 1.26 2.32 ia 0 SE> Malaysi +0.50 -3.5 <.KL 0.32 -1.96 a 3 SE> S.Korea 2 11> Singapo -0.08 -1.9 <.ST 0.67 9.06 re 2 I> Taiwan +0.53 +2.5 <.TW 1.08 18.08 3 II> Thailan +0.64 -7.6 <.SE 1.41 12.73 d 0 TI> (Reporting by Sameer Manekar in Bengaluru; Editing by Himani Sarkar and Subhranshu Sahu) Our Standards: The Thomson Reuters Trust Principles.

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