EMERGING MARKETS-Asia's emerging currencies held lower by firmer dollar

  • Reuters
  • Stock Market News
EMERGING MARKETS-Asia's emerging currencies held lower by firmer dollar
Credit: © Reuters.

(Repeats for Souteast Asia)

* U.S. 10-year bond yields climb to 1.7442%

* Malaysian bonds to stay in FTSE Russell bond index

* China bonds to be included in bond index from this year

March 30 (Reuters) - Asia's emerging currencies buckled under a firmer dollar on Tuesday after U.S. bond yields topped 1.7% again, with the Thai baht leading losses, falling nearly a fifth of a percent.

Benchmark 10-year U.S. Treasuries US10YT=RR climbed to 1.7442%, bolstering the greenback, which also garnered support from worries of a hedge fund default that roiled global banking stocks on Monday.

"There are still a number of investors who are concerned about a further spike in UST," Morgan Stanley (NYSE: MS ) analysts said in a note, adding that U.S. economic data surprises could push yields higher. "Hence, these investors continue to position defensively."

Stocks in Jakarta .JKSE led declines in Asia, falling more than 1%. Yields on its benchmark 10-year bonds ID10YT=RR rose 8.4 basis points to 6.84%, with the rupiah IDR= slightly lower. Bond yields fall when prices rise.

The yield on 10-year Malaysian bonds MY10YT=RR fell 4.3 basis points to 3.292%, after FTSE Russell removed the country from its watchlist and officially retained it in its flagship government bond index.

"This is a much welcome relief, and will allow investors to re-focus on other external drivers," HSBC said.

The ringgit MYR= , however, dipped 0.1% and stocks .KLSE were down a third of a percent.

FTSE Russell also confirmed that Chinese sovereign bonds will be included in its bond index starting this year, setting the stage for billions in inflows. said that with roughly $2.5 trillion tracking the FTSE World Government Bond Index, some $130 billion in inflows could be expected, given China's eventual 5.25% weighting.

In Thailand, shares .SETI rose 0.4% but gains were capped by state-owned listed oil and gas firm PTT Pcl PTT.BK .

A key OPEC+ meeting this week will decide whether output curbs should remain in place to support prices. O/R

Indian markets are set to reopen on Tuesday following a market holiday. COVID-19 cases are rising fast in the world's second most populous nation.

On the other end, South Korean shares .KS11 rebounded as institutional investors turned net buyers, while in Singapore .STI shares rose 0.8% to their highest since February last year.

HIGHLIGHTS:

** Malaysia's AirAsia posts record quarterly loss; shares fall Philippines raises $500 mln via discount Samurai bond - IFR Top losers on the Jakarta stock index include Bank Mayapada Internasional Tbk PT MAYA.JK and Pollux Properti Indonesia Tbk PT POLL.JK

Asia stock indexes and currencies at 0338 GMT COUNTRY

FX RIC

FX

FX

INDEX

STOCKS STOCKS

DAILY % YTD %

DAILY % YTD % Japan

JPY=

-0.17

-6.12 .N225 -0.05

7.01 China

CNY=CFXS -0.03

-0.65 .SSEC 0.57

-0.52 India

INR=IN

+0.00

+0.77 .NSEI 0.00

3.76 Indonesia

IDR=

-0.07

-2.84 .JKSE -1.28

1.82 Malaysia

MYR=

-0.12

-2.99 .KLSE -0.31

-1.28 Philippines PHP=

-0.02

-0.89 .PSI

-0.96

-8.34 S.Korea

KRW=KFTC -0.13

-4.15 .KS11 1.22

6.95 Singapore

SGD=

+0.01

-1.98 .STI

0.77

12.53 Taiwan

TWD=TP

+0.11

-0.13 .TWII -0.03

11.80 Thailand

THB=TH

-0.16

-4.01 .SETI 0.35

9.67

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