EMERGING MARKETS-Jakarta stocks, rupiah ease as China coal futures plunge

  • 10/21/2021
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* U.S. bans imports from Malaysia"s Supermax, shares plunge * Malaysia stocks mark worst day in three weeks * Rupiah"s long-term prospects supported by equity inflows - analyst By Anushka Trivedi Oct 21(Reuters) - Stocks and the currency of Indonesia, the world"s top thermal coal exporter, fell on Thursday as China coal futures plunged amid signs of Beijing"s intervention, while Malaysian shares eased 1% after news of U.S. regulatory action on a glove maker. Asian currencies and stocks were broadly weaker, with South Korea"s won declining 0.3%, followed by Singapore"s dollar and the Thai baht. Their equities traded flat to lower. The mood has been sombre after debt-laden China Evergrande Group"s deal to sell a stake in its property services unit fell through this week, reviving concerns about a crisis at the country"s high-yield real estate sector. Evergrande has, however, secured an extension on a defaulted bond, financial provider REDD reported, but the grace period on one of its coupon payments expires this weekend. Resuming trade after a holiday, Indonesia"s rupiah fell 0.5%, as China"s thermal coal futures extended losses since Tuesday when Beijing signalled it might intervene to cool soaring coal prices. Jakarta shares slipped with energy stocks leading the decline. High coal prices this year have boosted Indonesia"s trade balance and supported the currency, which has risen 3.5% since July. Equities have also been trading close to a record high. "Rupiah has strengthened quite a bit and it"s giving back some gains. The coal situation is more of an excuse to reduce long rupiah positions," Bank of Singapore FX analyst Moh Siong Sim said. Bank Indonesia does not want the currency to appreciate too much and long-term equity inflows could potentially offset the hit from a drop in coal prices, he added. Malaysian equities marked their worst day in three weeks as glove makers skid after the United States barred imports from Supermax Corp over alleged forced labour practices. While Supermax is not part of the benchmark, the news triggered a 3.9% drop in Top Glove Corp, the world"s biggest latex glove maker that faced a similar ban last year, and 2.6% decline in Hartalega Holdings. Supermax plunged 11%. HIGHLIGHTS ** Thailand"s 10-year government bond yields are down 3 basis points at 2.06%​​ ** Singapore"s 5-year benchmark yield is down 3.60 basis points at 1.216% ** Top losers on the Singapore STI include: Singapore Airlines Ltd , down 2.2%, and Jardine Cycle & Carriage Ltd, down 1.5% Asia stock indexes and currencies at 0737 GMT COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS STOCKS DAILY % YTD % Japan +0.17 -9.49 -1.87 4.61 China -0.07 +2.04 0.22 3.50 India +0.08 -2.33 -0.64 29.82 Indonesia -0.51 -0.74 -0.58 10.67 Malaysia +0.05 -3.32 -0.91 -2.18 Philippines -0.05 -5.48 0.20 2.41 S.Korea -0.25 -7.73 -0.19 4.66 Singapore -0.08 -1.76 -0.16 12.27 Taiwan +0.09 +2.14 0.01 14.64 Thailand -0.18 -10.30 0.22 13.23 (Reporting by Anushka Trivedi in Bengaluru; Editing by Subhranshu Sahu)

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