EMERGING MARKETS-Virus deaths hit Philippine stocks, others rise on China rebound hopes

EMERGING MARKETS-Virus deaths hit Philippine stocks, others rise on China rebound hopes

Reuters  | Jul 13, 2020 16:20

EMERGING MARKETS-Virus deaths hit Philippine stocks, others rise on China rebound hopes

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Philippine shares extend last week's sharp losses
* S. Korea, China shares outperform

By Shriya Ramakrishnan
July 13 (Reuters) - Philippine shares weakened on Monday as
the country reported a record daily spike in coronavirus deaths,
while other Asian stock markets rose on hopeful crucial economic
data from China later this week.
Shares in Manila .PSI were down 0.4% as the Philippines
health ministry warned of a risk of further fatalities and
infections, with nearly 12,000 suspected positive cases yet to
be verified. "The market sees a downward bias as it awaits the
government's decision on the community quarantine measures in
the capital for the second half of July," said Jennifer Lomboy,
a fixed income fund manager at First Metro Asset Management.
However, the mood across the rest of Asia was broadly
positive, with Chinese .SSEC and South Korean shares .KS11
gaining above 1.5% each, as investors were optimistic about
economic data releases from Beijing this week.
China, the region's largest trading partner, is set to
release its second-quarter growth readings, trade, industrial
output and retail sales figures for June later in the week.
A Reuters poll found that the slump in China's exports is
likely to have eased in June as some countries reopened their
economies, while imports contracted less sharply on higher crude
oil and commodities purchases. Stock markets around the region have also found support from
ample liquidity unleashed by central banks, along with a shift
in capital towards defensive plays such as technology and
consumer stocks.
In currency markets, the won KRW=KFTC outperformed with a
0.3% gain, while the Indonesian rupiah IDR= was hemmed in a
tight range as markets weighed in the possibility of a fourth
rate cut by Bank Indonesia (BI) later this week.
"Despite the nearly 10% appreciation in the IDR vs the USD
in Q2 yet far, authorities remain concerned over the flows
outlook, as a third of outstanding IDR debt is held by foreign
investors," DBS Bank analysts said.
"Nonetheless, the need to support growth remains a priority,
which is likely to keep BI on the easing path."
Indonesian debt offers the highest yield in Southeast Asia,
with the 10-year yield ID10YT=RR at 7.087%, compared with the
Philippines government debt PH10YT=RR and Malaysia
MY10YT=RR , which are under 3%.

HIGHLIGHTS:

** In the Philippines, top index losers are First Gen Corp
FGEN.PS down 5.01% at 23.7 peso; BDO Unibank Inc BDO.PS down
3.38% at 91.5 peso; and Robinsons Land Corp RLC.PS down 2.64%
at 15.5 peso

** Top gainers on the Thailand's SETI .SETI include
Multi-National Residence Fund MNRFu.BK up 12.33% at 3.28 baht
and Delta Electronics Thailand PCL DELTA.BK up​ 11.87% at
77.75 baht

** Indonesian 10-year benchmark yields are down 2.4 basis
points at 7.087%

Asia stock indexes and
currencies at 0731 GMT
COUNTRY FX FX FX YTD INDEX STOCKS STOCKS
RIC DAILY % % DAILY % YTD %
Japan .N225 2.22 -3.69
>
China .SSEC 1.77 12.89
CFXS>
India .NSEI 0.40 -11.15
IN>
Indonesi .JKSE 0.41 -19.80
a >
Malaysia .KLSE 0.79 0.99
>
Philippi .PSI -0.40 -21.02
nes >
S.Korea .KS11 1.67 -0.53
KFTC>
Singapor .STI -0.43 -18.05
e >
Taiwan .TWII 1.14 1.79
TP>
Thailand .SETI 0.26 -14.30
TH>

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