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EMERGING MARKETS-Currencies gain ahead of U.S. jobs data, rupiah at 2-month high

Published 05/07/2021, 03:36 PM
Updated 05/07/2021, 03:40 PM
© Reuters.

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
* Won up 0.4%, sees best day in a week
* China posts rapid trade growth in April
* Lenders lift up Singapore stocks; OCBC doubles Q1 profit

By Anushka Trivedi
May 7 (Reuters) - Asian currencies gained against the dollar
ahead of key U.S. jobs data on Friday, with the Indonesian
rupiah hitting a two-month high, while stocks received a boost
from China's upbeat economic report.
The rupiah IDR= rose 0.5% and was headed for its best week
since early November as the country's recent economic output
data hinted at a mild recovery and as foreign investors returned
to its high-yielding debt.
Outflows, dividend repatriation pressure and concerns about
Bank Indonesia's autonomy had seen the rupiah slump this year,
but it recently found favour among yield-seekers as the Federal
Reserve asserted a dovish stance.
As of last close, the yields on Indonesia's benchmark
10-year bonds ID10YT=RR were down 43.6 basis points from March
highs. Yields fell 2 basis points to 6.435% for the day.
"Rupiah is catching up after the dovish Fed anchored a
stable U.S. yield backdrop," Bank of Singapore FX analyst Moh
Siong Sim said.
No expected change to BI's policy rate for the rest of the
year and good performance at the recent government bond auctions
is adding to the positive sentiment, he added.
However, OCBC analysts said near-term supply on the lighter
side and the economic risk due to a resurgence in COVID-19 cases
could support Indonesia bonds but its yields are likely to be
rangebound.
The South Korean won KRW=KFTC had its best day in a week,
while the Malaysian ringgit MYR=MY , Taiwan's dollar TWD=TP
and the Singapore dollar SGD= firmed between 0.1% and 0.4% as
the greenback USD= eased.
U.S. payrolls data on Friday will likely confirm the
economy's solid path to recovery from the pandemic, and even
though it could potentially stoke inflation worries, so far the
Fed has downplayed the risks of higher prices.
Meanwhile, Thailand .SETI and Taiwan shares .TWII jumped
about 1% each, while Singapore's bourse .STI rallied 0.8%
after China's surprise export surge and solid services data for
April cemented hopes of continuing economic recovery in the
region's top trade partner. HIGHLIGHTS

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** Singapore shares rise after top lender Oversea-Chinese
Banking Corp's OCBC.SI Q1 profit doubles. ** Philippines March exports grew at fastest pace in more
than 10 years. ** India's daily COVID-19 cases rise by record 414,188.
stock indexes and currencies at 0642 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD %
Japan JPY= -0.08 -5.43 .N225 0.09 6.97
China CNY=CFXS +0.00 +1.01 .SSEC -0.60 -1.51
India INR=IN +0.06 -0.88 .NSEI 0.70 6.06
Indonesia IDR= +0.15 -1.78 .JKSE -0.36 -0.50
Malaysia MYR= +0.12 -2.31 .KLSE 0.08 -2.92
Philippines PHP= -0.09 +0.18 .PSI -0.38 -12.34
S.Korea KRW=KFTC +0.40 -3.13 .KS11 0.58 11.27
Singapore SGD= +0.05 -0.87 .STI 0.74 12.40
Taiwan TWD=TP +0.35 +2.12 .TWII 1.71 17.33
Thailand THB=TH -0.10 -4.16 .SETI 0.98 9.51

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