EMERGING MARKETS-Asian currencies slip ahead of key cenbank meetings this week

  • 11/1/2021
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* 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 8 C> India 2 I> Indonesia -0.63 -1.5 <.JKS -0.44 9.75 1 E> Malaysia -0.19 -3.0 <.KLS -2.17 -6.07 6 E> Philippines -0.03 -5.0 <.PSI -- -1.19 0 > S.Korea 8 1> Singapore -0.08 -2.1 <.STI 0.67 13.21 5 > Taiwan 1 I> Thailand 33 I> ($1 = 4.1440 ringgit) (Reporting by Indranil Sarkar in Bengaluru; Editing by Ramakrishnan M.)

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