EMERGING MARKETS-Asia's emerging FX hit by rising dollar; Indonesia, Philippine stocks fall 1%

  • Reuters
  • Stock Market News
EMERGING MARKETS-Asia's emerging FX hit by rising dollar; Indonesia, Philippine stocks fall 1%
Credit: © Reuters.

* U.S. 10-year bond yields climb to 1.7630%

* 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 set a new 14-month high, while stock markets in Indonesia and the Philippines fell around 1%.

Benchmark 10-year U.S. Treasuries US10YT=RR climbed as much as 1.7630% in late Asian trade, 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 1.2%. Yields on its benchmark 10-year bonds ID10YT=RR rose 3.69 basis points to 6.793%, while the rupiah IDR= dipped.

Indonesian bonds are favoured by foreign investors for their relatively high yields.

Meanwhile, the yield on 10-year Malaysian bonds MY10YT=RR fell 4.3 basis points to 3.292% - their lowest in more than two weeks - 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.

However, the ringgit MYR= slipped 0.1% and stocks .KLSE were down 0.2%.

FTSE Russell also confirmed that Chinese sovereign bonds would 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.

Also on investors radar, U.S. President Joe Biden is expected to outline how he would pay for a $3 trillion to $4 trillion infrastructure proposal on Wednesday. in India, where markets reopened after a public holiday on Monday, jumped nearly 2% boosted by banks after a steel conglomerate completed an insolvency process, allowing lenders to recover some of their bad loans. .BO

HIGHLIGHTS:

** Malaysia's AirAsia posts record quarterly loss; shares fall Philippines raises $500 mln via discount Samurai bond - IFR Bank Mayapada Internasional Tbk PT, Pollux Properti Indonesia Tbk PT POLL.JK and Bank QNB Indonesia Tbk PT BKSW.JK led losses in Indonesia Asia stock indexes and currencies at 0631 GMT COUNTRY

FX RIC

FX

FX

INDEX

STOCKS STOCKS

DAILY % YTD %

DAILY % YTD % Japan

JPY=

-0.25

-6.19 .N225 0.16

7.25 China

CNY=CFXS +0.02

-0.60 .SSEC 0.37

-0.72 India

INR=IN

-0.65

+0.11 .NSEI 1.88

5.71 Indonesia

IDR=

-0.07

-2.84 .JKSE -1.18

1.92 Malaysia

MYR=

-0.10

-2.97 .KLSE -0.18

-1.16 Philippines PHP=

+0.01

-0.86 .PSI

-0.94

-8.32 S.Korea

KRW=KFTC -0.17

-4.18 .KS11 1.12

6.84 Singapore

SGD=

+0.02

-1.97 .STI

0.72

12.47 Taiwan

TWD=TP

+0.13

-0.12 .TWII 0.48

12.37 Thailand

THB=TH

-0.19

-4.04 .SETI 0.56

9.90

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