EMERGING MARKETS-Asia FX, stocks get vaccine boost as rebound hopes bloom

Published 03-12-2020, 10:11 am
Updated 03-12-2020, 10:12 am
© Reuters.

(Repeats to additional codes)

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh

* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I

* Manila shares up for 3rd straight day

* S. Korean stocks hit fresh record high

By Shashwat Awasthi

Dec 3 (Reuters) - Emerging Asian currencies and stocks broadly firmed on Thursday, as news that Britain would start vaccinating citizens against the coronavirus next week fanned hopes of a swift global economic rebound next year as the pandemic subsides.

Signs of progress in U.S. stimulus talks overnight also supported risk appetite and investors shunned the U.S. dollar in favour of currencies with higher yields and other emerging market assets. on Wednesday became the first western country to approve Pfizer Inc (NYSE:PFE)'s PFE.N COVID-19 vaccine, with its chief executive confident that vaccine supply would outpace demand by the end of 2021. have provided a shot in the arm for sentiment thanks to the improving likelihood of a faster and more robust growth recovery," Societe Generale (PA:SOGN) analysts said in a report.

Malaysian stocks .KLSE jumped 0.9% to lead gains in Southeast Asia, while shares in South Korea .KS11 and Singapore .STI also rose.

Indonesian stocks .JKSE hit a more than nine-month high, but later gave up gains to trade lower after the country's president said he hoped the central bank would take on "a more significant role" in upcoming reforms. made in recent months to expand Bank Indonesia's mandate have irked investors and analysts and raised doubts about the central bank's independence.

Most regional currencies traded higher as the dollar continued to plumb a near two-and-a-half year low. FRX/

The greenback has been sold-off since last month as market participants pile into riskier holdings amid positive vaccine news and hopes of further stimulus support, and analysts at Goldman Sachs (NYSE:GS) contend this trend may continue.

"An integral part of our negative dollar outlook for 2021 is that vaccine development and distribution will lead to coordinated global growth, helping to catalyze portfolio outflows from the U.S. into other markets," they said.

"Portfolio flows to more pro-growth sectors, particularly in China and other emerging markets, are likely a key factor behind the dollar's recent depreciation, and we expect that to continue."

Philippine stocks .PSI added 0.6% after data showed the country's unemployment rate eased in October as coronavirus curbs were gradually lifted, while Thai shares <.SETI

> bounced 0.4%.

Thai officials on Wednesday announced plans for 43.5 billion baht ($1.44 billion) of additional stimulus to try to boost domestic consumption and revive the tourism-reliant economy, even as global infections continue to rise. also faces risk from continued political uncertainty and anti-government protests, which have been raging for months. protests do not bode well for an already-contracting economy. We see political tensions mounting and lasting into 2021, with no clear solution in sight at this juncture," said Tim Leelahaphan, an economist at Standard Chartered (LON:STAN).

HIGHLIGHTS:

** Indonesian 10-year benchmark yields are up 5 basis points at 6.228%

** Top gainers on FTSE Bursa Malaysia Kl Index include Axiata Group AXIA.KL up 2.7%, Telekom Malaysia TLMM.KL up 2.39% and Press Metal Aluminium PMET.KL up​ 2.31%

** In the Philippines, top index gainers are Security Bank SECB.PS up 6.48%, Metro Pacific Investments MPI.PS up 4.26% and Robinsons Land RLC.PS up​ 4.18%

Asia stock indexes and currencies

at 0403 GMT

COUNTRY FX RIC

FX

FX YTD INDE STOCK STOC

DAILY

%

X

S

KS

%

DAILY YTD

%

% Japan

JPY=

-0.04

+3.99 <.N2 0.18 13.4

25>

9 China

+6.20 <.SS -0.09 12.9

S>

EC>

9 India

INR=IN +0.01

-3.21 <.NS 0.44 8.24

EI>

Indones

IDR=

-0.07

-1.56 <.JK 0.32 -7.4

ia

SE>

1 Malaysi

MYR=

+0.12

+0.47 <.KL 0.80 1.44

a

SE>

Philipp

PHP=

-0.01

+5.42 <.PS 0.60 -8.8 ines

I>

6 S.Korea

+5.41 <.KS 0.13 21.9

C>

11>

2 Singapo

SGD=

+0.03

+0.56 <.ST 0.17 -12.

re

I>

63 Taiwan

TWD=TP +0.93

+5.63 <.TW 0.24 16.8

II>

9 Thailan THB=TH +0.00

-0.96 <.SE 0.48 -9.8

d

TI>

2

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