EMERGING MARKETS-Asian stock lift from China data fades as Trump-Biden debate sparks concern

  • Reuters
  • Stock Market News
EMERGING MARKETS-Asian stock lift from China data fades as Trump-Biden debate sparks concern
Credit: © Reuters.

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

* China Manufacturing PMI for September 51.5 vs August's 51.0

* Chaotic U.S. presidential debate leaves more questions

By Nikhil Nainan

Sept 30 (Reuters) - An early boost to Asia's emerging stock markets from Chinese economic data faded on Wednesday as a chaotic first U.S. presidential debate weakened sentiment globally and traders reined in bets ahead of several regional market holidays.

The debate saw heated clashes between President Donald Trump and Democratic rival Joe Biden, leaving more doubts about the November election and whether Trump would accept an unfavourable result than clarity of who could come out on top. stocks .SSEC had initially led gains after two surveys showed China's factory activity, a bellwether for the region, still firmly in growth territory in September. Taiwan and the Philippines all held onto gains of around 0.4% as the day wore on, but both Shanghai and Singapore fell back to trade around 0.2% lower.

A Trump victory in November would spell more volatility from relations with China and knock-on effects for the rest of Asia, according to some analysts. Goldman Sachs (NYSE: GS ) analysts on Tuesday said a victory for Biden and his Democratic Party in House and Senate elections was likely to boost the stock market. the Trump presidency outward direct investment to emerging economies has more than halved," said Stuart Ritson, a portfolio manager of emerging market local currency debt at Aviva (LON: AV ) Investors.

"(If Biden wins) We might be able to see direct investment begin to flow again. In that environment, (emerging market currencies) can do a little better," he said.

Most stock markets in Asia, in line with global trends, are slated to post declines in September, with China snapping three months of gains and Indonesia .JKSE five, after fresh jolts to the global economic recovery emerged from Europe and investors re-valued companies seen as winners during the COVID-19 pandemic.

China will start a week-long break from Thursday, while holidays in South Korea and Hong Kong for the remainder of the week and India on Friday kept trading subdued.

Taiwan, whose tech-focussed economy has made it a robust performer in the coronavirus crisis, stood out again on Wednesday, with its currency TWD=TP rising 0.6%.

The U.S. dollar found more support after the debate, prodding most other regional currencies marginally lower.

The Philippine peso PHP= was marginally lower ahead of a central bank meeting on Thursday, where economists predict no policy changes following a total of 175 basis point cuts this year. Philippine 10-year benchmark yield unchanged at 3.05%

** Singapore's top gainer was Keppel Corp KPLM.SI after it identified assets worth S$17.5 billion to monetise Fractious presidential debate unlikely to move needle for Trump react to first Trump-Biden election debate stock indexes and currencies at 0707 GMT COUNTRY







DAILY % YTD % Japan


+0.05 +2.86 .N225

-1.50 -1.99 China


+0.09 +2.27 .SSEC


5.51 India


+0.15 -3.20 .NSEI

0.07 -7.71 Indonesia


-0.03 -6.53 .JKSE

-0.10 -22.63 Malaysia


-0.12 -1.71 .KLSE

0.44 -4.93 Philippines PHP=

-0.14 +4.58 .PSI

0.39 -24.96 S.Korea


- -1.12 .KS11


5.93 Singapore


-0.01 -1.78 .STI

-0.19 -23.45 Taiwan


+0.66 +3.95 .TWII


4.32 Thailand


-0.16 -5.56 .SETI

-0.75 -21.01

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  • Rakesh Prasad @Rakesh Prasad
    Today Dow will crash on open.
    Like 0

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