EMERGING MARKETS-S.Korea leads Asian stocks lower as inflation concerns weigh

- Advertisement -


    * Thailand c.bank decision awaited later in the day
    * Malaysian stocks hit 1-month low
    * Philippine stocks snap 6-day winning streak

    By Arundhati Dutta
    Nov 10 (Businesshala) - South Korea and Philippine stocks led
Asian share markets lower as high crude prices and inflation
readings from China stoked fears of policy tightening, while
Thai stocks edged lower ahead of the Bank of Thailand policy
decision.
    China's factory gate inflation topped forecasts and hit a
26-year high in October, mainly driven by soaring commodity
prices due to a power crunch.
    Focus will now turn to U.S. inflation readings later in the
day which could cement the case for a rate hike there, which
would be clash with the prevailing policy of Asian central banks
to hold rates until their economies stabilise. 
    South Korean stocks slipped as much as 1%, while
Singapore, Thailand and the Philippines
dropped between 0.3% and 0.6%.     
    Malaysian stocks fell up to 0.4% and hit their
lowest in a month, ahead of gross domestic product data due on
Friday.
    Malaysia's economy likely slipped back into contraction in
the third quarter as coronavirus-induced restrictions brought
economic activity to a near-standstill, a Businesshala poll found.

    Currency markets in the region were mixed, with the
Malaysian ringgit weakening 0.1%, while the Philippine
peso and the Taiwan dollar strengthened.
    The Thai baht was little changed ahead of the
country's central bank meeting later in the day, where it is
expected to hold rates at a record low.
    "(Thailand's) recovery is still nascent rather than enduring
and far more fragile than most of its peers... the bar is far
higher for any upswing in inflation to trigger a policy
response, " Mizuho Bank analysts said in a note. 
    The baht is Asia's worst performing currency in 2021 so far,
with an over 8% drop as a standstill in tourism eroded investor
confidence in the country's economic recovery.
    
    HIGHLIGHTS:
    **Singapore's 5-year benchmark yield is down 1 basis points
at 1.313%
    **Indonesian 3-year benchmark yields are down 1.5 basis
points at 4.577%​​
    **Losses in consumer staple and healthcare stocks drive
Malaysian benchmark lower
    
  Asia stock indexes and currencies                       
 at   0443 GMT                                      
 COUNTRY   FX RIC          FX     FX  INDE  STOCKS  STOCKS
                      DAILY %  YTD %     X   DAILY   YTD %
                                                 %  
 Japan                  +0.02  -8.50  <.N2  -0.66    6.01
                                      25>           
 China                               EC>           
 India                  -0.05  -1.36  <.NS   -0.54   28.36
                                      EI>           
 Indonesi               -0.04  -1.44  <.JK   -0.17   11.37
 a                                    SE>           
 Malaysia               -0.07  -3.14  <.KL   -0.44   -6.75
                                      SE>           
 Philippi               +0.28  -4.00  <.PS   -0.98    3.21
 nes                                  I>            
 S.Korea                             11>           
 Singapor               -0.05  -1.96  <.ST   -0.55   13.42
 e                                    I>            
 Taiwan                 +0.13  +2.70  <.TW    0.06   19.14
                                      II>           
 Thailand               +0.06  -8.49  <.SE   -0.30   12.25
                                      TI>           
 
 (Reporting by Arundhati Dutta in Bengaluru; Editing by Lincoln
Feast.)
  
- Advertisement -

- Advertisement -

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox