EMERGING MARKETS-Asian markets lifted by improved risk appetite, U.S. dollar retreat

  • Reuters
  • Stock Market News
EMERGING MARKETS-Asian markets lifted by improved risk appetite, U.S. dollar retreat
Credit: © Reuters.

* Singapore leads gains in Southeast Asia

* U.S. inflation rose more than expected in July

* Malaysia releases GDP data on Friday

Aug 13 (Reuters) - Asia's currencies and stock markets rose on Thursday as investors took comfort after U.S. data dispelled concerns about deflation in the world's largest economy, while a U.S. stalemate over further fiscal stimulus hit the U.S. dollar.

The greenback fell against most of its peers amid fading hopes for a compromise between Republicans and Democrats over more economic stimulus. FRX/

Taiwan's dollar TWD=TP rose almost half a percent, outperforming other Asian currencies, while Singapore's Straits Times Index .STI led gains among regional stock markets.

The cononavirus pandemic has continued to buffet financial markets, as investors balance tentative signs of global economic recovery and promising vaccine developments with second waves of outbreaks which have triggered fresh restrictions.

U.S. data on Wednesday showing consumer prices rising more than expected in July also underpinned appetite for some riskier assets on Thursday. big themes colluded to render the 'risk on' markets," said Mizuho Bank in a research note.

"First, outright optimism on several fronts of the pandemic... Second was the unexpectedly large upswing in U.S. inflation that appeared to have signs of demand recovery."

Thailand reopened following a holiday on Wednesday, with equities .SETI up 0.8% and the baht marginally higher.

Kuala Lumpur .KLSE stocks also gained strongly, rising 0.9%.

Malaysia's ringgit MYR= and South Korea's won KRW=KFTC gained around 0.1% against the U.S. dollar.

The greenback has been on the rise in August following months of declines, but it also fell on Thursday in tandem with U.S. Treasury yields after strong demand for a record $38 billion auction of 10-year notes. US/

Malaysia will publish its second quarter gross domestic product numbers on Friday, and is expected to show a contraction for the first time in more than a decade. Top gainers in Singapore include Genting Singapore Ltd GENS.SI , Jardine Strategic Holdings Ltd JSH.SI and Sembcorp Industries Ltd SCIL.SI

** Malaysia GDP likely fell 10% in April-June

** Indonesian 3-year benchmark yields ID3YT=RR down 1.9 basis points to 5.239%

Asia stock indexes and currencies at 0621 GMT COUNTRY

FX RIC

FX

FX

INDEX

STOCKS STOCKS

DAILY % YTD %

DAILY % YTD % Japan

JPY=

+0.26 +1.88 .N225

1.78 -1.72 China

CNY=CFXS

-0.04 +0.32 .SSEC

0.16

8.99 India

INR=IN

+0.01 -4.60 .NSEI

0.36 -6.74 Indonesia

IDR=

-0.20 -5.67 .JKSE

0.10 -16.84 Malaysia

MYR=

+0.07 -2.36 .KLSE

0.85 -1.19 Philippines

PHP=

+0.20 +3.73 .PSI

1.71 -21.98 S.Korea

KRW=KFTC

+0.08 -2.36 .KS11

-0.29 10.36 Singapore

SGD=

+0.07 -1.95 .STI

1.33 -19.41 Taiwan

TWD=TP

+0.45 +2.37 .TWII

0.73

6.38 Thailand

THB=TH

+0.10 -3.61 .SETI

0.75 -14.75

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