EMERGING MARKETS-Asia shares mount late recovery as Trump deals stimulus blow

  • Reuters
  • Stock Market News
EMERGING MARKETS-Asia shares mount late recovery as Trump deals stimulus blow

* Philippine shares fall as much as 1.1% to 1-week low

* Malaysia to impose targeted lockdowns to halt infections surge

* Biden lead widens against Trump

Oct 7 (Reuters) - Philippines and Indonesian shares dropped on Wednesday after the mood on global stock markets was dented by U.S. President Donald Trump's decision to end talks about a U.S. stimulus package, although late gains helped turn other Asian markets positive.

Shares in Manila .PSI fell close to 1%, extending losses from Tuesday when data showed September inflation slowing to a four-month low. The Philippine index underperformed its neighbours in Jakarta .JKSE and Kuala Lumpur .KLSE . numbers raised further questions about the Philippines' economic recovery, with parts of the country still under COVID-19 restrictions and the central bank suggesting it will hold rates so prior cuts can filter through.

A number of the region's emerging economies have been among those struggling the most with both rising cases of the novel coronavirus and the resulting economic fallout.

Others have proved stronger, however, and Taiwan and South Korean markets were both solidly higher in afternoon trade. Seoul's main index closed almost 1% higher. In Singapore .STI , shares gained 0.4%.

"I do not believe hopes of a stimulus deal are now gone forever," said Jeffrey Halley, a senior Asia market analyst at OANDA.

"Asian markets will likely spend the day digesting the implications of a no U.S. stimulus agreement."

Trump trails Democrat Joe Biden in most polls and if his rival sweeps the election, Democrats are likely to push ahead with a package. Markets in Asia are also eyeing whether a Biden presidency would ease tense relations with China - the region's main engine of growth.

Chinese markets will reopen after a week-long holiday on Friday.

Asia's other emerging currencies were flat to slightly higher against the dollar, with the greenback holding steady from overnight and not seeing further buying. FRX/

After taking to Twitter to end the talks, Trump later urged Congress to pass funding for airlines, small businesses and provide $1,200 stimulus checks for Americans. ringgit MYR= dipped as the country said it will be using targeted lockdowns in areas with high rates of COVID-19 infections as cases spike. ABS-CBN ABS.PS jumped 50% after announcing a return to free TV broadcast for entertainment shows from Oct. 10

** Top losers in the Philippines are Puregold Price Club Inc PGOLD.PS , International Container Terminal Services ICT.PS and PLDT Inc TEL.PS

** Indonesian 3-year benchmark yields are down 0.5 basis point to 5.341%

Asia stock indexes and currencies at 0651 GMT COUNTRY

FX

FX

FX

INDEX

STOCKS

STOCKS

RIC

DAILY % YTD %

DAILY % YTD % Japan

JPY=

-0.10

+2.72

.N225 -0.05

-0.99 China

CNY=CFXS -

+2.42

.SSEC -

5.51 India

INR=IN

+0.14

-2.69

.NSEI 0.59

-3.60 Indonesia

IDR=

+0.14

-5.51

.JKSE -0.52

-21.06 Malaysia

MYR=

-0.02

-1.52

.KLSE -0.19

-5.17 Philippines PHP=

+0.26

+4.68

.PSI

-0.72

-24.92 S.Korea

KRW=KFTC +0.24

-0.16

.KS11 0.89

8.61 Singapore

SGD=

+0.24

-1.11

.STI

0.39

-21.21 Taiwan

TWD=TP

+0.74

+4.72

.TWII 0.33

6.25 Thailand

THB=TH

-0.19

-4.26

.SETI 0.28

-20.65

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100

Related Articles