* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Singapore dollar set for best month since Jan. 2018
* Indian rupee up 1% in July, eyes best showing in a year
* Focus on Indian, Thai cenbank meetings next week
By Rashmi Ashok
July 31 (Reuters) - Asian currencies rose on Friday and were
set to end July with their best performance in months as the
dollar tumbled on worries a U.S. economic recovery was set to be
derailed by a second wave of coronavirus outbreaks.
Several Asian markets were closed for the Eid al-Adha public
holiday although the currencies of South Korea, Taiwan, Thailand
and China, which were open, were all firmer.
Despite a continued surge in coronavirus infections in
India, the rupee INR=IN is also poised to end July with a near
1% gain - its best monthly performance in over a year.
The Singapore dollar SGD= has advanced about 1.7% across
the month, narrowly beating gains from last December and putting
it on track for its best showing since January 2018.
"In the near term, the huge wave of global central bank
liquidity and an ample supply of dollars in the global financial
system will mean that short of a huge growth shock, the dollar
looks cyclically vulnerable," analysts at ANZ wrote in a note on
Thursday.
"A higher liquidity world should favour... Asian currencies,
and this is where we think the next leg of dollar weakness may
show itself."
The surge in coronavirus cases in a number of U.S. states in
the past fortnight has hurt global appetite for risk while also
weakening the greenback's traditional appeal as a safe haven at
times of stress, putting the dollar index =USD on course for
its biggest monthly fall in 10 years. USD/
Taiwan's dollar TWD=TP and the South Korean won
KRW=KFTC , both heavy exporters and centres for tech that are
expected to benefit more than some economies from post-pandemic
reality, have been among the bigger gainers.
The Taiwan currency and the Thai baht THB=TH both racked
up gains of 0.7% on Friday, while the won hit a four-month peak.
Asian equities were largely subdued after a wobbly session
on Wall Street, as a coronavirus aid bill for jobless Americans
remained stalled in the U.S. Congress and data showed claims for
unemployment benefits continued to accelerate.
Chinese stocks .SSEC were the sole gainers after data
showed China's factories stepped up activity in July for a fifth
straight month as improving prospects for electrical and
pharmaceutical goods helped sustain a broader recovery.
The yuan jumped 0.4% and was on track for its best month
since October.
Investors will look to July export data next week from
China, South Korea and Taiwan to gauge the state of global
demand. Manufacturing prints from a slew of countries are also
expected.
HIGHLIGHTS
** Top losers on Thailand's SETI .SETI include Nok
Airlines PCL NOK.BK down 14.29% and Starflex PCL SFLEX.BK
losing 12.9%
** SETI index .SETI is down 0.33% at 1,311.34 and has
fallen 16.72% YTD
** Thailand's 10-year government bond yields were down 3
basis points at 1.21%, while 3-year benchmark yield eased 0.5
basis point at 0.565%
Asia stock indexes and
currencies at 0711 GMT
COUNTRY FX RIC FX FX INDEX STOCK STOCKS
DAILY YTD % S YTD %
% DAILY
%
Japan JPY= +0.38 +4.11 .N225 -2.82 -8.23
China CNY=CFXS +0.27 -0.39 .SSEC 0.73 8.55
India INR=IN +0.07 -4.55 .NSEI -0.11 -8.86
Philippines PHP= +0.22 +3.30 .PSI - -
S.Korea KRW=KFTC +0.26 -2.93 .KS11 -0.78 2.35
Singapore SGD= +0.12 -1.88 .STI - -
Taiwan TWD=TP +0.75 +2.75 .TWII -0.46 5.57
Thailand THB=TH +0.77 -4.10 .SETI -0.33 -17.00