EMERGING MARKETS-Asian markets lifted by improved risk appetite, U.S. dollar retreat

EMERGING MARKETS-Asian markets lifted by improved risk appetite, U.S. dollar retreat

Reuters  | Aug 13, 2020 14:50

EMERGING MARKETS-Asian markets lifted by improved risk appetite, U.S. dollar retreat

* Singapore leads gains in Southeast Asia
* U.S. inflation rose more than expected in July
* Malaysia releases GDP data on Friday

Aug 13 (Reuters) - Asia's currencies and stock markets rose
on Thursday as investors took comfort after U.S. data dispelled
concerns about deflation in the world's largest economy, while a
U.S. stalemate over further fiscal stimulus hit the U.S. dollar.
The greenback fell against most of its peers amid fading
hopes for a compromise between Republicans and Democrats over
more economic stimulus. FRX/
Taiwan's dollar TWD=TP rose almost half a percent,
outperforming other Asian currencies, while Singapore's Straits
Times Index .STI led gains among regional stock markets.
The cononavirus pandemic has continued to buffet financial
markets, as investors balance tentative signs of global economic
recovery and promising vaccine developments with second waves of
outbreaks which have triggered fresh restrictions.
U.S. data on Wednesday showing consumer prices rising more
than expected in July also underpinned appetite for some riskier
assets on Thursday. "Two big themes colluded to render the 'risk on' markets,"
said Mizuho Bank in a research note.
"First, outright optimism on several fronts of the
pandemic... Second was the unexpectedly large upswing in U.S.
inflation that appeared to have signs of demand recovery."
Thailand reopened following a holiday on Wednesday, with
equities .SETI up 0.8% and the baht marginally higher.
Kuala Lumpur .KLSE stocks also gained strongly, rising
0.9%.
Malaysia's ringgit MYR= and South Korea's won KRW=KFTC
gained around 0.1% against the U.S. dollar.
The greenback has been on the rise in August following
months of declines, but it also fell on Thursday in tandem with
U.S. Treasury yields after strong demand for a record $38
billion auction of 10-year notes. US/
Malaysia will publish its second quarter gross domestic
product numbers on Friday, and is expected to show a contraction
for the first time in more than a decade.
** Top gainers in Singapore include Genting Singapore Ltd
GENS.SI , Jardine Strategic Holdings Ltd JSH.SI and Sembcorp
Industries Ltd SCIL.SI
** Malaysia GDP likely fell 10% in April-June
** Indonesian 3-year benchmark yields ID3YT=RR down 1.9
basis points to 5.239%
Asia stock indexes and currencies at 0621 GMT
COUNTRY FX RIC FX FX INDEX STOCKS STOCKS
DAILY % YTD % DAILY % YTD %
Japan JPY= +0.26 +1.88 .N225 1.78 -1.72
China CNY=CFXS -0.04 +0.32 .SSEC 0.16 8.99
India INR=IN +0.01 -4.60 .NSEI 0.36 -6.74
Indonesia IDR= -0.20 -5.67 .JKSE 0.10 -16.84
Malaysia MYR= +0.07 -2.36 .KLSE 0.85 -1.19
Philippines PHP= +0.20 +3.73 .PSI 1.71 -21.98
S.Korea KRW=KFTC +0.08 -2.36 .KS11 -0.29 10.36
Singapore SGD= +0.07 -1.95 .STI 1.33 -19.41
Taiwan TWD=TP +0.45 +2.37 .TWII 0.73 6.38
Thailand THB=TH +0.10 -3.61 .SETI 0.75 -14.75

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