EMERGING MARKETS-Asian stocks decline on China worries, coal plunge hurts Indonesia

  • 10/28/2021
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* U.S. bans China Telecom"s unit * Indonesian rupiah, stocks decline as coal tumbles again * Malaysia Sept trade data beats expectations By Anushka Trivedi Oct 28 (Reuters) - Asian stocks fell across the board on Thursday as investors were unsettled by risks of renewed U.S.-China tension, potentially adding to existing global supply chain issues, while the Indonesian rupiah led losses among currencies. Stocks of trade-reliant Asian countries like Philippines , Singapore and Indonesia shed between 0.3% and 0.7%. Shanghai equities dropped the most, down 1.1%, with the yuan easing 0.1%. Investor focus was squarely on developments in China, grappling with an economic slowdown due to an energy crunch and crisis in its property sector, with fresh COVID-19 outbreaks adding to jitters. News of the U.S. telecoms regulator revoking China Telecom"s authorisation to operate late on Wednesday compounded worries for market participants only too aware that tensions between the world"s two biggest economies previously threw global trade into a disarray. "Focus in the region may revolve around ongoing COVID-19 risks in China, with infections in Beijing at an eight-month high," said Yeap Jun Rong, market strategist at retail trading platform IG. The ban on China Telecom also "fuelled concerns that further escalation could possibly bring back more U.S. scrutiny on Chinese technology players, weighing on sentiment." Jakarta shares fell as much as 1.2%, to a two-week low, with energy stocks leading the decline as coal futures plunged after China stepped up ways in which it can control prices. Indonesia is the world"s top thermal coal exporter. The rupiah fell 0.2% on the same news, having lost 1.3% over the past 10 days since Beijing pledged to intervene in the coal market. The Philippine peso and the South Korean won also slipped, while most other currencies traded flat as souring risk sentiment supported the greenback"s safe-haven status in the Asia trading session. The Malaysian ringgit recouped early losses to gain 0.1% after September"s trade data beat expectations handily due to a surge in petroleum products and palm oil exports. HIGHLIGHTS ** Singapore"s 5-year benchmark yield is up 12.3 basis points at 1.395%​​ ** Indonesian 10-year benchmark yields are up about 0.89 basis points at 6.162% ** Top losers on the Singapore STI include: Keppel DC REIT, down 1.7% and Singapore Technologies Engineering Ltd, down 1.03% Asia stock indexes and currencies at 0440 GMT COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCK STOCKS YTD % S DAILY % Japan +0.24 -9.07 -0.92 5.05 China -0.10 +2.04 -0.93 1.61 India +0.19 -2.42 -0.61 29.45 Indonesia -0.20 -1.11 -1.02 9.30 Malaysia +0.10 -3.11 -0.67 -3.36 Philippines -0.20 -5.42 -1.07 0.18 S.Korea -0.03 -7.19 0.20 5.50 Singapore +0.06 -1.97 -0.39 12.72 Taiwan +0.01 +2.37 -0.37 15.47 Thailand +0.33 -9.89 0.01 12.32 (Reporting by Anushka Trivedi in Bengaluru; Editing by Kenneth Maxwell)

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