EMERGING MARKETS-Baht sinks to over 4-year low, rupiah leads Asian FX lower

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    * Fumio Kishida to become Japan's next PM
    * Indonesian rupiah hits 1-month low
    * S.Korean, Taiwanese stocks fall over 1%

    By Arundhati Dutta
    Sept 29 (Businesshala) - The Thai baht slipped to a more than
four-year low on Wednesday, but regained some ground as the
central bank held its key interest rate at a record low, while
local stocks traded in a narrow range.
    The baht fell as much as 0.4% to its weakest since
July 2017. It is emerging Asia's worst performing currency in
2021, weakening over 11% against the U.S. dollar.
    The Bank of Thailand (BoT) kept its policy rate unchanged at
0.5% as widely expected, and said it would closely monitor the
baht.
    "I think it's going to help slow down the baht's
depreciation in the near-term," said Poon Panichpibool, market
strategist at Krung Thai Bank, referring to BoT's decision. 
    "We still have some risk going ahead... we could see another
flood like in 2011, that could lead to a rate cut later on."
    The country's tourism-reliant economy has been hammered by
border restrictions due to a COVID-19 outbreak in July and
August. A Businesshala poll showed short bets on the baht, the South
Korean Won and the Philippine peso have risen significantly.

    The Indonesian rupiah, hovering at its lowest in a
month, led losses among most of the region's currencies as 
dollar traded near its strongest levels of 2021, with traders
bracing for an end of the pandemic era's accommodative stance.
 
    St. Louis Fed President James Bullard told Businesshala here
 that he could see a case for two rate hikes next year. 
    The partially convertible Indian rupee touched
74.1875 against the dollar, its weakest since Aug. 27.

    Taiwan and South Korea, down over 1% each,
led most of the region's equity markets lower as investors
fretted that an ongoing power supply crunch in China could  have
a knock-on effect on emerging Asian economies.
    China's power squeeze from a shortage of coal supplies has
shut factories across the country and will likely hamper its
2021 growth. 
     "If energy markets carry on the way they are going, growth
momentum will slow even as input costs rise. There is not much
monetary policy can do about that, " Jeffrey Halley, market
analyst at OANDA wrote in a note. 
    In Japan, the Nikkei shed 2.12%. Former foreign
minister Fumio Kishida won a ruling Liberal Democratic Party
leadership race and will become the country's next prime
minister.
    
    HIGHLIGHTS:
    **Thailand's 10-year government bond yields are down 2.5
basis points at 1.83%
    **Indonesian 3-year benchmark yields are down 0.5 basis
points at 4.58%​​ 
    **Malaysia's 3-year benchmark yield is up 0.5 basis points
at 2.537%
    
  Asia stock indexes and currencies                       
 at   0748 GMT                                      
 COUNTRY   FX RIC          FX     FX  INDE  STOCKS  STOCKS
                      DAILY %  YTD %     X   DAILY   YTD %
                                                 %  
 Japan                  +0.19  -7.23  <.N2  -2.12    7.65
                                      25>           
 China                               EC>           
 India                  -0.26  -1.57  <.NS   -0.46   26.36
                                      EI>           
 Indonesi               -0.21  -1.82  <.JK    0.70    2.96
 a                                    SE>           
 Malaysia               -0.10  -3.92  <.KL   -0.38   -5.30
                                      SE>           
 Philippi               +0.47  -5.59  <.PS    0.71   -2.88
 nes                                  I>            
 S.Korea                             11>           
 Singapor               +0.02  -2.69  <.ST    0.34    8.59
 e                                    I>            
 Taiwan                 -0.02  +2.49  <.TW   -1.90   14.41
                                      II>           
 Thailand               -0.12  -11.3  <.SE    0.20   11.76
                                   6  TI>           
 

 (Reporting by Arundhati Dutta in Bengaluru; Editing by Rashmi
Aich)
  
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