EMERGING MARKETS-Ringgit at over 1-month high ahead of 2022 budget, Manila shares fall

  • 10/29/2021
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* Malaysia fiscal 2022 budget due at 0800 GMT * Asia stocks down as U.S. tech giants flag supply chain issues * China real estate sector remains in focus By Anushka Trivedi Oct 29 (Reuters) - The Malaysian ringgit firmed to its highest in over a month on expectations the government will release an expansionary fiscal 2022 budget later on Friday, while Asian stocks were mostly weak, with Philippine shares down 1%. The Thai baht advanced 0.3% to lead gains, while the Singapore dollar, the Philippine peso and the Indonesian rupiah traded flat to marginally higher against a wavering greenback. The ringgit gained 0.2% as investors awaited the 2022 budget. The finance ministry said in August it expects its fiscal deficit to widen this year due to continued spending required to support the gradual reopening of the economy. "Malaysia"s revenue base will get a boost from the recent boom in commodity, in particular crude oil and palm oil prices. ..it will create much needed fiscal space to allow for additional expenditures in handling the pandemic," Mizuho analysts said in a note. Even if there is knee-jerk depreciation in the ringgit following the budget, we do not expect that it will be sustained as the broader pro-growth fiscal stance is supportive, they added. Malaysia"s economy suffered from harsh COVID-19 lockdowns earlier this year, but buoyant exports and a rising vaccination rate have more recently buoyed the recovery. The country has the second-highest vaccination rate in Southeast Asia after Singapore. Kuala Lumpur stocks, however, fell slightly on fears of softer third-quarter corporate earnings, with Sime Darby Plantation leading losses. Asian shares declined, tracking U.S. stock futures, which fell 0.4% as earnings at tech majors Apple and Amazon missed forecasts on supply chain woes. Philippine stocks shed 1.5%, on track for their worst day in a month, and led losses in the region. Stock markets in South Korea and Taiwan fell. Troubles in China"s property sector also overshadowed the stock market. Sustained worries over a planned pilot real-estate tax scheme have hurt risk appetite, already hit by debt troubles in China Evergrande Group. Shanghai stocks and the yuan traded mostly flat. HIGHLIGHTS ** Malaysia"s 3-year benchmark yield is up about 2.2 basis points at 2.66% ** Indonesian 3-year benchmark yields are up 2.9 basis points at 4.612% ** In the Philippines, top index losers are International Container Terminal Services Inc down 4.8% and JG Summit Holdings Inc down 3.4% Asia stock indexes and currencies at 0500 GMT COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD % Japan -0.04 -9.13 0.05 5.07 China +0.01 +2.15 0.16 1.46 India +0.17 -2.31 -0.08 27.62 Indonesia +0.04 -0.88 0.78 9.96 Malaysia +0.12 -2.97 -0.26 -3.96 Philippines +0.08 -4.80 -1.41 -1.17 S.Korea -0.05 -7.19 -0.86 3.83 Singapore +0.00 -1.76 0.66 13.41 Taiwan +0.03 +2.36 -0.28 15.35 Thailand +0.21 -9.73 -0.19 11.86 (Reporting by Anushka Trivedi in Bengaluru; Editing by Ana Nicolaci da Costa)

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