EMERGING MARKETS-Thai baht leads losses among Asian FX, China jitters resurface

  • 10/27/2021
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* Currencies in Thailand, S. Korea, Malaysia, Indonesia down * U.S. 2-Year Treasury yield jumps 3.15 bps to 0.4793% * Thai baht sees worst session in three weeks By Indranil Sarkar Oct 27 (Reuters) - Asian currencies broadly fell on Wednesday, with Thailand"s baht leading the losses, as short-term U.S. Treasury yields jumped amid hopes that rising inflation will lead to earlier-than-expected interest rate hikes in the world"s largest economy. Emerging Asian stocks slipped on fresh China jitters. Modern Land became the latest Chinese property developer to default on a bond payment, hurting real estate stocks there and rekindling worries that China Evergrande Group"s debt problems could pose a contagion risk. Stocks in Indonesia, Thailand and South Korea slipped between 0.3% and 0.8%, tracking Chinese stocks, which fell 1.2%. "We might see some outflows from Asian equity markets this week, probably due to such bad news from China," said Poon Panichpibool, a markets strategist at Krung Thai Bank. China also reported 59 new confirmed coronavirus cases for Oct. 26 compared with 43 a day earlier, as health officials fear that infections in the world"s most populated country were likely to spread further. The Thai baht eased 0.5% and was on track for its worst day in three weeks, having recently come under pressure due to rising oil prices, even after data showed the country"s manufacturing production index had a smaller-than-expected year-on-year drop of 1.28% in September. "Market watchers could be concerned that rising global oil prices could continue to weigh on Thailand"s current account deficit, given that it is a net oil importer," analysts at Maybank wrote in a note. South Korean shares fell 0.8% as traders booked profits after two straight sessions of gains, with investor focus firmly on Samsung Electronics earnings due on Thursday. However, stocks in Singapore rose 0.5% as the city-state slowly reopens its borders and expands quarantine-free travel, even as it reported a jump in COVID-19 cases on Wednesday. Malaysian stocks gave up earlier gains to trade 0.1% weaker. The government is due to unveil an expansionary budget on Friday to spur post-pandemic recovery, while surging prices for the country"s gas exports also underpinned the stock market. HIGHLIGHTS ** Indonesian 10-year benchmark yields are up 0.3 basis points at 6.2%​​ ** Singapore"s 10-year benchmark yield is up 2 basis points at 1.8%​​ ** Top gainers on the Singapore STI include Hongkong Land Holdings Ltd, up 1.7%, and Jardine Matheson Holdings Ltd, up 1.6% Asia stock indexes and currencies at 0719 GMT COUNTRY FX FX FX INDE STOCKS STOCK RIC DAILY YTD X S % % DAILY YTD % % Japan +0.15 -9.41 <.N2 -0.03 6.03 25> China EC> India -0.01 -2.54 <.NS 0.25 30.98 EI> Indonesia -0.19 -0.97 <.JK -0.78 10.47 SE> Malaysia -0.05 -3.06 <.KL -0.08 -2.72 SE> Philippines +0.05 -5.37 <.PS -0.30 1.27 I> S.Korea 11> Singapore +0.04 -1.98 <.ST 0.63 13.39 I> Taiwan +0.12 +2.42 <.TW 0.24 15.90 II> Thailand -0.45 -9.89 <.SE -0.28 12.56 TI> (Reporting by Indranil Sarkar in Bengaluru; Editing by Subhranshu Sahu)

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