EMERGING MARKETS-Indonesia stocks, rupiah weaken on consumer confidence 'reality check'

  • 9/8/2021
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* Rupiah weakens 0.4%, Indonesia stocks down 1.7% * Malaysia c.bank meeting awaited * Stronger dollar weighs on regional FX By Harish Sridharan Sept 8 (Reuters) - Indonesian shares dropped 1.7% to hit a three-week low and the rupiah weakened on Wednesday after data showed consumer confidence in Southeast Asia"s most populous nation fell last month even though some COVID-19 curbs were eased. Other equities in the region came under pressure from concerns over slowing economic growth in the United States, while emerging Asian currencies broadly weakened against a stronger dollar, with Thailand"s baht and South Korea"s won leading losses. In Jakarta, a central bank survey showed the consumer confidence index fell further in August to 77.3, compared with 80.2 in the previous month. The rupiah fell 0.4%. "What we are seeing at the moment is a bit of reality check. There is still an element of risk aversion out there," said Mitul Kotecha, Chief EM Asia & Europe strategist at TD Securities. The survey overshadowed some relief on the pandemic front for Indonesia, whose daily coronavirus positivity rate dropped below the World Health Organization"s benchmark for the first time on Tuesday. "Though cases have come down, there is still caution amongst consumers and retailers and that is dragging down consumer confidence, which in turn is weighing on markets in Indonesia," Kotecha said. In Malaysia, the ringgit and stocks both dipped a day before the central bank"s policy decision. A Reuters survey showed that Bank Negara Malaysia is expected to leave interest rates unchanged at 1.75%, as the country gradually reopens its economy amid a ramped-up COVID-19 vaccination drive. Thailand"s baht, the region"s worst performing currency this year, dropped 0.6% as the greenback hovered near a one-week peak. South Korea"s won weakened 0.8%. A weaker overnight session on Wall Street hurt stocks in the region, with Singapore, South Korea and Taiwan shedding between 0.8% and 1.2%. Equities in South Korea dropped for a second straight session, as regulatory risks hurt technology heavyweights and investors evaluated the risk of a slower recovery from the pandemic as local cases surged. HIGHLIGHTS ** Indonesian 10-year benchmark yields are up 2.4 basis points at 6.141%​​ ** Top loser on the Jakarta stock index was Boston Furniture Industries Tbk PT, down 8.96% ** Taiwan stocks close 0.9% lower, their lowest since August 27 Asia stock indexes and currencies at 0725 GMT COUNTRY FX RIC FX FX INDE STOCKS STOCK DAILY YTD % X DAILY S YTD % % % Japan +0.06 -6.32 <.N2 0.89 9.97 25> China EC> India -0.18 -0.66 <.NS -0.41 23.67 EI> Indones -0.39 -1.58 <.JK -1.72 0.47 ia SE> Malaysi -0.05 -3.27 <.KL -0.11 -2.79 a SE> Philipp +0.00 -4.27 <.PS 0.53 -2.67 ines I> S.Korea 11> Singapo -0.04 -1.86 <.ST -1.24 7.96 re I> Taiwan -0.25 +2.67 <.TW -0.91 17.23 II> Thailan -0.64 -8.69 <.SE -0.14 12.76 d TI> (Reporting by Harish Sridharan in Bengaluru; Editng by Devika Syamnath) Our Standards: The Thomson Reuters Trust Principles.

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