EMERGING MARKETS-Asia FX dips on stronger dollar, S.Korea shares slide most

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    Oct 5 (Businesshala) - Most emerging Asian currencies weakened on
Tuesday as the dollar rose ahead of a key U.S. payrolls report
this week, while South Korean stocks slumped on the back of an
overnight selloff on tech-heavy Nasdaq.
    South Korean equities ended at a nearly seven-month
low, tracking weakness on Wall Street, where investors dumped
big tech names as U.S. Treasury yields rose amid Washington
wrangling over the debt ceiling.
    Concerns that elevated inflation could bring forward the
timeline for Federal Reserve tapering have also recently
supported bond yields. 
    Markets are also eyeing September employment data this
Friday for signals on the pace of the Fed's tapering timeline.
    A strong result could pave the way for the Fed to begin
reducing its $120 billion in monthly bond purchases in November,
the central bank indicated in its September meeting, which may
sap appetite for the region's riskier assets.
    "Barring a huge miss in the non-farm payrolls this Friday,
expect the market to continue buying into the hawkish Fed
storyline," OCBC said, adding that this would support the
dollar.
    The Philippine peso and South Korean won
firmed around 0.2% each, while most other currencies dipped
against the greenback.
    OPEC+ also ignored calls from the United States and India to
boost oil output as the global economy recovers, lifting crude
prices to their highest in at least three years and raising
further inflation concerns. 
    Inflation in the Philippines, meanwhile, eased in September
from a three-year peak, giving the central bank room to maintain
its policy support to help the Southeast Asian nation's economy
recover from the pandemic.
    Brokerage UOB expects the Philippine central bank to
maintain its accommodative monetary policy stance until
mid-2022, given the uneven recovery. 
    In Singapore, shares fell 1.4% after the previous
day's rally. The city-state's stock exchange operator
was the biggest drag, falling around 3% ahead of an annual
general meeting on Thursday, while real estate stocks also
weighed.
    Worries about debt defaults by Chinese property developers
also sapped investor sentiment amid fresh credit rating
downgrades and uncertainty about the fate of China Evergrande
Group as it scrambles to raise cash by selling assets.
    Chinese markets are closed for a holiday until Thursday. 
        
    HIGHLIGHTS:
    ** Frasers Logistics & Commercial Trust and
Mapletree Logistics Trust are among the top losers in
Singapore
    ** Indonesian 10-year benchmark yields down 1.5 basis points
at 6.319%​​ 
    ** Australia's central bank sticks with low rates, dodges
high house prices
 Asia stock indexes and currencies at   0704 GMT      
 COUNTRY       FX          FX       FX       INDEX    STOCKS    STOCKS
               RIC         DAILY %  YTD %             DAILY %   YTD %
 Japan                     -0.31    -7.17             -2.19     1.38
 China                     -        +1.25             -         2.74
 India                     -0.23    -1.90             0.06      26.61
 Indonesia                 +0.06    -1.52             -0.88     5.15
 Malaysia                  -0.16    -3.79             0.12      -6.33
 Philippines               +0.32    -5.19             0.29      -2.22
 S.Korea                   +0.00    -8.62             -1.89     3.09
 Singapore                 -0.11    -2.72             -0.80     7.77
 Taiwan                    -0.10    +2.11             0.32      11.73
 Thailand                  -0.03    -11.33            0.57      12.02
 
    
 (Reporting by Nikhil Kurian Nainan in Bengaluru; editing by Ana
Nicolaci and Ramakrishnan M.)
  
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