* Malaysian stocks fall over 2%
* Thailand allows entry to vaccinated tourists
* C. bank meetings in Britain, Australia and U.S. scheduled
this
week
By Indranil Sarkar
Nov 1 (Reuters) - Most Asian currencies weakened against a
stronger dollar on Monday as traders eyed major global central
bank meetings later this week for signals on their rates policy
outlook, while the Thai baht fell despite an easing of
international border curbs.
Indonesia"s rupiah, the South Korean won
and the Philippine peso eased between 0.1% and 0.6% as
the greenback traded near a 2-1/2-week high to major peers.
With inflation soaring, the Bank of England and the Reserve
Bank of Australia look likely to adjust their monetary policy
later this week, while the U.S. Federal Reserve is expected to
say it will start tapering bond purchases at the end of its
two-day meeting on Wednesday.
Tourism-reliant Thailand"s baht dropped 0.8% to be
among the top losers, even as the country resumed travel for
fully vaccinated tourists after months of restrictions. Thai
stocks slipped 0.4%.
Investors want to see if there are new COVID-19 outbreaks
after the re-opening, said Poon Panichpibool, markets strategist
at Krung Thai Bank.
"After that, I think foreign investors will be more
confident and will start to accumulate Thai equities again."
South Korean shares rose 0.5% after the country"s
exports posted their eighth straight month of double-digit
growth in October.
Malaysian stocks fell more than 2%, tracking their
worst day in seven months, even after the country announced
plans to allocate 8.2 billion ringgit ($1.98 billion) for cash
aid as part of its 2022 budget to be distributed to 9.6 million
recipients.
The market weakness is likely due to the announcement of new
tax measures in the budget, which includes the one-off
prosperity tax on high-revenue generating companies as well as
higher stamp duties on the trading of shares, said Julia Goh,
senior economist at UOB.
Malaysia"s central bank is also due to hold a policy review
on Wednesday and is likely to keep interest rates on hold,
according to a Reuters poll, as the country gradually reopens
amid an intense vaccination drive.
"Expansionary fiscal policy gives monetary policy
flexibility to address any inflation concerns, especially from
second half of 2022," a Citibank analyst wrote in a note,
referring to Malaysia"s central bank.
The stock market in the Philippines was closed for a
holiday.
HIGHLIGHTS
** Indonesian 10-year benchmark yields are up 3.5 basis
points at 6.204%
** Singapore"s 10-year benchmark yield is up 1.8 basis
points at 1.861%
** Top losers on FTSE Bursa Malaysia Kl Index
include Telekom Malaysia Bhd and RHB Bank Bhd
down 4.5% each
Asia stock
indexes and currencies at 0740 GMT
COUNTRY FX FX FX INDEX STOCKS STOCKS
RIC YTD
DAILY YTD DAILY %
% % %
Japan -0.31 -9.7 <.N22 2.61 8.03
2 5>
China
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