* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I
* Yuan falls after PBOC removes reserves for forward trading
* Rising COVID-19 cases weigh on Malaysian stocks
* Indonesian stocks gain on easing of coronavirus curbs
By Shriya Ramakrishnan
Oct 12 (Reuters) - Most Asian currencies struggled for
traction on Monday as China's yuan pulled back from a 17-month
high after a policy tweak by the central bank, while stock
markets rose on hopes for a new U.S. stimulus package.
Over the weekend, the People's Bank of China (PBOC) lowered
the reserve requirement ratio for financial institutions when
conducting some foreign exchange forwards trading to zero from
20%, effectively lowering the cost of shorting the Chinese
currency. The PBOC move reflects "the Chinese authorities' concerns
with the raging yuan strength," said Jingyi Pan, market
strategist at trading firm IG Asia.
"That said, this had not been viewed as a significant curb
or attempt to reverse the current stronger yuan trend that
remains supported by fundamentals," Pan added.
The Singapore dollar SGD= , Malaysian ringgit MYR= and
Thai baht THB=TH hovered near unchanged levels to lower during
the day, while the Taiwan dollar TWD=TP once again stood out
with gains of more than 1%.
The South Korean won KRW=KFTC advanced 0.4% in tandem with
gains in the stock market .KS11 after data showed overseas
sales of semiconductors, the nation's top export item, jumped
11.2% for the first 10 days of October. Stock markets in the region were broadly higher, even as
negotiations on U.S. fiscal stimulus ran into resistance, with
the Democrats dismissing the Trump administration's proposal to
pass a stripped-down coronavirus relief bill as inadequate.
"The fact of the matter remains one where the market
continues to judge the passage for the phase four stimulus to be
expected down the road, even if politics does get in the way for
the time being," IG's Pan said.
Indonesian stocks .JKSE climbed as much as 1% to their
highest level in nearly a month, as Jakarta Governor Anies
Baswedan announced the capital city will kick off a two-week
'transitional' period of eased coronavirus curbs. Markets barely reacted to protests over a controversial jobs
law that could cut red tape and boost investment for Indonesia's
coronavirus-hit economy. Protesters say the law undermines
labour rights and weakens environmental protections.
"Although the new labour laws could depress economic
performance in the short term, in the medium to longer run it
will indeed jack up investments and bolster economic growth,"
said Anthony Kevin, macro economist at Mirae Asset Sekuritas
Indonesia.
Malaysian stocks .KLSE were down more than 1%, hurt by
concerns over a sharp spike in coronavirus infections over the
past few weeks. ** Indonesian 10-year benchmark yields ID10YT=RR are down
1 basis point at 6.889%
** Top losers on FTSE Bursa Malaysia Kl Index .KLSE
include PETRONAS Chemicals Group Bhd PCGB.KL down 1.66% at
5.92 ringgit; CIMB Group Holdings Bhd CIMB.KL down 1.58% at
3.11 ringgit
** Top gainers on the Singapore STI .STI include
Comfortdelgro Corporation Ltd CMDG.SI up 1.38% at S$1.47,
Keppel Corporation Ltd KPLM.SI up 1.34% at S$4.55
Asia stock indexes and
currencies at 0407 GMT
COUNTRY FX RIC FX FX INDEX STOCK STOCKS
DAILY YTD % S YTD %
% DAILY
%
Japan JPY= +0.11 +2.98 .N225 -0.32 -0.48
China CNY=CFXS -0.40 +3.61 .SSEC 2.27 9.71
India INR=IN 0.00 -2.39 .NSEI 0.71 -1.39
Indonesi IDR= -0.10 -5.51 .JKSE 0.81 -19.13
a
Malaysia MYR= -0.02 -1.14 .KLSE -0.91 -4.55
Philippi PHP= -0.02 +4.74 .PSI -0.28 -24.32
nes
S.Korea KRW=KFTC +0.40 +0.67 .KS11 0.47 9.35
Singapor SGD= -0.12 -0.73 .STI 0.64 -20.90
e
Taiwan TWD=TP +1.15 +5.13 .TWII 0.29 7.73
Thailand THB=TH -0.06 -3.73 .SETI 0.45 -19.43