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EMERGING MARKETS-Philippines bucks China-led Asia rally as new infections spike

Published 07/06/2020, 05:19 PM
Updated 07/06/2020, 05:20 PM
© Reuters.
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MY10YT=RR
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PSI
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BLOOM
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* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Malaysia's central bank policy rate decision on Tuesday
* China's main index posts biggest one-day jump since 2015

By Nikhil Nainan
July 6 (Reuters) - The Philippine stock market failed to
join a broader regional rally led by a surge in Chinese shares
on Monday, as a spike in new coronavirus cases in the Southeast
Asian country stoked fears of fresh economic restrictions.
Stock markets across emerging and developed parts of Asia,
including India .NSEI , Malaysia .KLSE , Singapore .STI and
South Korea .KS11 , rose at least 1% as Shanghai surged more
than 5% to touch its highest levels in more than two years.
The U.S. dollar also weakened against most of its Asian
peers, with the Philippine peso PHP= advancing the most.
However, the single-highest daily jump in COVID-19 cases on
Sunday in the Philippines dragged local shares .PSI 0.7% lower
on the prospect of fresh restrictions that would deal a blow to
hopes of a swift economic recovery. The 2,000-plus cases reported on Sunday was a "shocker",
said Nicholas Mapa, ING's senior economist for Philippines,
adding what was most worrying was infections outside the capital
in areas less well equipped to handle an outbreak.
In Malaysia, where a small majority of economists polled by
Reuters expect an interest rate cut on Tuesday, shares climbed
to their highest in nearly a month. HSBC's Chief ASEAN Economist Joseph Incalcaterra errs on the
side of a hold on rates by Bank Negara Malaysia and said in a
note on Monday that Malaysia still has more policy space than
others and has no particular urgency to act now.
Malaysia has already cut rates three times this year to 2%,
the lowest level it has ever been.
The yield on Malaysian 10-year bonds MY10YT=RR traded
roughly in line with Friday's close, its lowest since May.
Markets in Thailand were closed for a holiday.

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HIGHLIGHTS:
** The Philippines' top loser was First Gen Corp FGEN.PS
down 4.84%, followed by Bloomberry Resorts Corp BLOOM.PS and
Security Bank Corp SECB.PS
** In Malaysia, Top Glove Corp TPGC.KL led the gains

Asia stock indexes and currencies at 0731 GMT
COUNTRY FX FX FX INDEX STOCKS STOCKS
RIC DAILY % YTD % DAILY % YTD %
Japan JPY= -0.07 +0.96 .N225 1.83 -3.98
China CNY=CFXS +0.51 -0.97 .SSEC 5.71 9.27
India INR=IN -0.18 -4.53 .NSEI 1.68 -11.37
Indonesia IDR= +0.04 -3.90 .JKSE 0.20 -20.91
Malaysia MYR= +0.12 -4.46 .KLSE 1.40 -0.91
Philippines PHP= +0.37 +2.64 .PSI -0.69 -19.02
S.Korea KRW=KFTC +0.23 -3.29 .KS11 1.65 -0.44
Singapore SGD= +0.23 -3.37 .STI 1.56 -16.39
Taiwan TWD=TP +0.34 +2.02 .TWII 1.74 1.00

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