EMERGING MARKETS-Asian units weaken on low risk appetite ahead of Fed meeting

  • Reuters
  • Stock Market News
EMERGING MARKETS-Asian units weaken on low risk appetite ahead of Fed meeting
Credit: © Reuters.

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

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

* Investors eye U.S Fed meeting

* Malaysia exports rise at fastest pace in four years

* Higher U.S Treasury yields weigh on EM currencies

By Harish Sridharan

April 28 (Reuters) - Asian currencies were weaker on Wednesday as a rise in U.S Treasury yields took some shine off risk assets, while investor caution ahead of a U.S. Federal Reserve meeting kept shares rudderless. US/

"Higher UST yields are weighing a tad on AxJ (Asia excluding Japan) FX this morning. Caution could also be creeping in across risk assets as earlier positive growth data has been somewhat priced in and broad equity up-moves are beginning to show signs of resistance," analysts at Maybank said in a note.

When the Fed's policy meeting concludes on Wednesday, Chair Jerome Powell's is expected to reaffirm commitment to keeping monetary policy accomodative over a prolonged time, though signs of rising inflation expectations has raised some speculation that policy could be tightened sooner than thought.

Malaysian government data showed exports jumped 31% in March from a year earlier, rising at their fastest pace in nearly four years, as the Southeast Asian country continues to recover from the pandemic. Malaysian stocks .KLSE were down 0.4%, while the ringgit MYR= weakened 0.1%. central bank said that the city-state's economic growth is likely to exceed 6% this year and added that its accommodative monetary policy stance remained appropriate. Shares .STI and the Singapore dollar SGD= were both marginally weaker. South Korean benchmark share index .KS11 fell as much as 1% and was on course to record its worst session for a week, driven declines in and SK Hynix 000660.KS and Samsung Electronics 005930.KS share prices, while the won KRW=KFTC weakened 0.2%.

Indonesia's finance ministry on Tuesday said that it sold 28.05 trillion rupiah ($1.94 billion) worth of bonds in a bi-weekly bond auction, slightly below its indicative target. at OCBC Treasury Research said that even though the bond auction in Indonesia went better than before and saw more demand for five year and ten year bonds, the curve looked flat.

Indonesian 10-year benchmark yields were up 10.5 basis points at 6.559%. The rupiah was marginally weaker.

Highlights

** Matichon PCL MATI.BK was up 24.55% and among the top gainers on the Thailand's SETI .SETI

** In the Philippines, the top index gainer was Bloomberry Resorts Corp BLOOM.PS , up 4.86%

** Among the heavyweights in South Korea, technology giant Samsung Electronics 005930.KS fell 0.84% and peer SK Hynix 000660.KS fell 2.96%

Asia stock indexes and

currencies at 0511 GMT

COUNTRY FX RIC

FX

FX INDE STOCKS STOCK

DAILY YTD %

X DAILY S YTD

%

%

% Japan

JPY=

-0.12 -5.12 <.N2

0.37 6.03

25>

China

S>

EC>

India

INR=IN

+0.28 -1.85 <.NS

0.64 5.47

EI>

Indones IDR=

-0.10 -3.14 <.JK

0.12 -0.21 ia

SE>

Malaysi MYR=

-0.10 -1.95 <.KL -0.36 -1.62 a

SE>

Philipp PHP=

+0.06 -0.89 <.PS

1.77 -9.39 ines

I>

S.Korea

C>

11>

Singapo SGD=

-0.04 -0.42 <.ST -0.07 12.95 re

I>

Taiwan

TWD=TP

+0.07 +2.14 <.TW -0.29 19.09

II>

Thailan THB=TH

-0.03 -4.53 <.SE

0.90 8.55 d

TI>

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