EMERGING MARKETS-Asian stocks, FX gain on dovish Fed, Biden's stimulus plans

  • Reuters
  • Stock Market News
EMERGING MARKETS-Asian stocks, FX gain on dovish Fed, Biden's stimulus plans
Credit: © Reuters.

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

* Weaker dollar pushes Asian currencies higher

* Thai stocks hit three-week high, baht firms

* Philippine stocks reverse early losses

By Harish Sridharan

April 29 (Reuters) - Asian shares and currencies rose on Thursday, as the dollar slipped to a near nine-week low after the U.S Federal Reserve maintained a dovish outlook and President Joe Biden proposed an $1.8 trillion stimulus package.

U.S Treasury yields fell overnight, pulling the dollar along with it, after Fed Chair Jerome Powell said "it is not time yet" to begin discussing any change in policy and quashed speculation on early tapering of asset buying. currencies are seeing relief gains on the back of the Fed's sanguine outlook on inflation, which implies that U.S. monetary policy is likely to remain accommodative and supportive of inflows into Asia," said Chang Wei-Liang, macro strategist (forex and credit) at DBS Bank.

Asian currencies including the Indian rupee INR=IN and the Indonesian rupiah IDR= strengthened 0.44% and 0.24%, respectively. The South Korean won KRW=KFTC rose 0.43% to touch its strongest level in more than two months.

"In the near term... Asia-Pacific EM currencies may continue to push higher against the greenback," said Daniel Dubrovsky, strategist at DailyFX. He, however, added that a downturn in sentiment could revive demand for the safe-haven dollar

"A key risk for these currencies, such as the Indonesian rupiah, Malaysian ringgit and Indian rupee, is rising borrowing costs from the United States. This would make the repayment of foreign debt more difficult."

Stocks in Asia gained on Fed's dovish stance, with most markets trading in the positive territory.

Indian shares .NSEI gained in volatile trading, as investors looked ahead to quarterly earnings even as the country posted a record rise in coronavirus cases and deaths over the last 24 hours, with overall caseload rising above 18 million. in Malaysia were closed on account of a local holiday.

Thailand's finance ministry cut the country's economic growth forecast to 2.3% from the 2.8% growth it projected earlier, as the country continues to face the brunt of a third wave of coronavirus infections. benchmark stock index .SETI , however, extended gains from the previous day and scaled a more than three-week peak, while the baht THB=TH rose 0.42%.

Stocks in Manila .PSI reversed to positive territory, after falling as much as 0.8% in early trading, with utilities and technology stocks leading gains. Highlights

** Top gainers on the Thailand's SETI .SETI include Autocorp Holding PCL ACG.BK , up 29.6%

** Top gainer on the Jakarta stock index .JKSE was Agro Yasa Lestari PT Tbk AYLS.JK , up 33.8%

** The biggest gainers on the NSE index were JSW Steel Ltd JSTL.NS and Bajaj Finserv Ltd BJFS.NS , up 5.67% and 5.06%, respectively

Asia stock indexes and

currencies at 0735 GMT

COUNTRY

FX RIC

FX

FX

INDEX STOCKS STOCK

DAILY YTD %

DAILY S YTD

%

%

% Japan

JPY=

-0.21 -5.13 .N225

0.21 5.87 China

CNY=CFXS

+0.16 +0.93 .SSEC

0.52 0.05 India

INR=IN

+0.44 -1.30 .NSEI

0.30 6.63 Indonesia

IDR=

+0.24 -2.90 .JKSE

0.64 0.57 Philippines PHP=

+0.19 -0.69 .PSI

0.28 -9.13 S.Korea

KRW=KFTC

+0.43 -1.99 .KS11

-0.23 10.46 Singapore

SGD=

+0.02 -0.29 .STI

0.09 13.31 Taiwan

TWD=TP

-0.04 +1.91 .TWII

0.00 19.24 Thailand

THB=TH

+0.42 -4.04 .SETI

0.91 9.78

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