* Thailand markets closed for a holiday
* Fitch downgrades Malaysia's credit rating; ringgit weaker
* China Nov exports rise sharply
By Anushka Trivedi
Dec 7 (Reuters) - Indonesian shares hit a near 10-month high on Monday,
while other Asian stock markets made modest gains as optimism over U.S. stimulus
was overshadowed by a possible escalation in tensions between the United States
and China.
The Jakarta index .JKSE jumped 1.7% to lead gains after local media https://www.thejakartapost.com/news/2020/12/05/indonesia-greenlights-adoption-of-major-covid-19-vaccines.html?src=mostviewed&pg=
reported over the weekend that the government would allow coronavirus vaccine
usage, following which President Joko Widodo said that Indonesia had received
its first shipment of vaccines from China. Indonesia has been among the hardest hit countries by the pandemic as its
daily number of coronavirus infections has accelerated in recent weeks and its
death toll remains the highest in Southeast Asia.
However, other emerging Asian stock markets retreated from highs hit over
vaccine optimism and the $908 billion aid bill in the United States after
Reuters reported that President Donald Trump's administration was preparing
sanctions on some Chinese officials over the crackdown in Hong Kong.
"After an initial rise on U.S. stimulus hopes, early rallies quickly
faded...I expect the negativity in the major Asian markets to be short-lived,"
Jeffrey Halley, senior market analyst, Asia Pacific, at OANDA, wrote.
In the long term, the news of stimulus should outweigh the negative
headlines on geopolitical tensions, he added.
Even upbeat trade data from China, the region's economic engine, failed to
spur a rally in Asian equities. Chinese exports rose at the fastest pace since
February 2018 in November, jumping 21.1% from a year earlier.
Meanwhile, emerging Asian currencies were a shade higher against a flat
dollar .DXY , with only the Taiwanese dollar TWD=TP a stand out at 0.9%
stronger.
The ringgit MYR=MY was knocked 0.3% lower after Fitch downgraded
Malaysia's credit rating on expectations of worsening fiscal pressure, increased
debt and political uncertainty. However, analysts at Mizuho bank said the downgrade was "not a cause for
alarm" as a wider fiscal deficit to entrench the recovery was necessary.
"Malaysia's medium-term growth outlook remains positive and highly
constructive, with near-term support possibly being expedited by the recovery in
oil prices as well as vaccine boost to global demand and tourism."
Financial markets in Thailand were shut due to a holiday.
HIGHLIGHTS
** Indonesian 10-year benchmark yields are up 3.6 basis points at 6.234%
** Top gainers on the Jakarta stock index .JKSE : Island Concepts Indonesia
Tbk PT ICON.JK up 34.7% & Pool Advista Finance Tbk PT POLA.JK up 34.7%
** Top losers on the Singapore STI .STI include: UOL Group Ltd UTOS.SI
down 2% and City Developments Ltd CTDM.SI down 1.7%
Asia stock indexes and currencies at
0504 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD %
Japan JPY= +0.13 +4.43 .N225 -0.60 12.41
China CNY=CFXS -0.06 +6.57 .SSEC -0.66 12.19
India INR=IN +0.07 -3.21 .NSEI 0.26 9.24
Indonesia IDR= -0.11 -1.56 .JKSE 1.67 -6.22
Malaysia MYR= -0.27 +0.49 .KLSE 0.04 2.12
Philippines PHP= +0.08 +5.39 .PSI 0.71 -8.06
S.Korea KRW=KFTC -0.02 +6.85 .KS11 0.13 24.44
Singapore SGD= +0.06 +0.75 .STI -0.12 -11.98
Taiwan TWD=TP +0.91 +6.51 .TWII 0.66 18.58