Reuters | Aug 12, 2020 15:50
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* U.S. 10-year Treasury yields up, dollar gains
* Glove makers hit Malaysian shares
* China shares fall as much as 2.3%
By Nikhil Nainan
Aug 12 (Reuters) - Emerging Asian currencies were flat to lower
against a resurgent U.S. dollar on Wednesday, while heavy losses for
Malaysian glove makers sent its stock market to a more than one-month
The overall mood on stock markets was downbeat, with Chinese
equities .SSEC down around 1% after data showed a slowdown in money
supply and bank lending growth, clouding encouraging signals in the
past week. .SS
"July's money and credit data were all below expectations,"
Goldman Sachs analysts said in a client note.
China was first to emerge from coronavirus lockdowns and its
economy has shown signs of getting back into gear, but investors are
yet to be convinced that the path to recovery for it and other Asian
markets is clear.
New Zealand, a country seen by many to have successfully
contained the outbreak early on, reimposed strict restrictions on
Wednesday after new COVID-19 cases were uncovered. Asia's emerging currencies have been helped through the crisis by
a slide in the dollar as the U.S. Federal Reserve pumped billions of
additional dollars into the financial system and COVID-19 cases in
the United States rose.
That trend has reversed somewhat in the past week, however, and a
jump in U.S. Treasury yields overnight, ahead of a record $38 billion
bond auction later on Wednesday, gave the greenback another boost.
"The dollar short-squeeze seems to be ongoing still, and
sentiments in Asia are a tad cautious ahead of the U.S.-China trade
pact review due around 15 Aug," Maybank analysts said in a note.
Indonesia's rupiah IDR= was the biggest loser in Asia's
emerging currency space, down 0.4%.
After China, Malaysia .KLSE was among the hardest hit markets
on the day with shares down 0.6%.
Malaysia's Top Glove Corp TPGC.KL , the world's largest medical
glove maker, and its local rival, Hartalega Holdings HTHB.KL , fell
around 8.9% and 7.5%, respectively, dragging the benchmark lower.
The glove makers, who have enjoyed a surge in demand during the
coronavirus crisis, have been under pressure of late over their
treatment of migrant workers. Thailand was closed for a public holiday.
** Top Glove Corp TPGC.KL and Hartalega Holdings HTHB.KL top
losers on Malaysia's benchmark
** Indonesian 10-year benchmark yields down 3 basis points to
Asia stock indexes and currencies at 0710 GMT
COUNTRY FX RIC FX FX INDEX STOCKS STOCKS
DAILY % YTD % DAILY % YTD %
Japan JPY= -0.26 +1.73 .N225 0.41 -3.44
China CNY=CFXS -0.07 +0.17 .SSEC -0.68 8.77
India INR=IN -0.01 -4.54 .NSEI -0.17 -7.11
Indonesia IDR= -0.48 -5.51 .JKSE 0.68 -17.05
Malaysia MYR= -0.05 -2.53 .KLSE -0.60 -2.10
Philippines PHP= +0.02 +3.52 .PSI 0.69 -23.29
S.Korea KRW=KFTC +0.03 -2.44 .KS11 0.57 10.68
Singapore SGD= -0.07 -2.15 .STI 0.59 -20.60
Taiwan TWD=TP +0.41 +2.36 .TWII -0.86 5.61
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.
More content, faster quotes and charts, and a smoother experience is available only on the App.