EMERGING MARKETS-Dollar wobble aids Asian currencies, Singapore shares slide

  • Reuters
  • Stock Market News
EMERGING MARKETS-Dollar wobble aids Asian currencies, Singapore shares slide
Credit: © Reuters.

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

* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA

* Taiwan dollar tracks best day in four months

* Singapore stocks hit by dividend worries

* Philippine stocks endure worst day in a week

By Shashwat Awasthi and Pranav A K

July 22 (Reuters) - Emerging Asian currencies firmed on Wednesday as unease around the next round of economic stimulus in the United States kept the U.S. dollar subdued, while concerns about rising coronavirus cases and imminent dividend cuts dented Singapore stocks.

The Taiwanese dollar TWD=TP and South Korea's won KRW=KFTC each rose for the fourth straight session and Indonesia's rupiah IDR= also gained.

Southeast Asian stock markets wavered through the session and most traded flat to lower by 0700 GMT, with investors on edge as U.S. lawmakers struggle to agree upon terms for more fiscal support for the economy.

The greenback clawed back earlier losses and inched higher after China said the United States had abruptly told it to close its consulate in the city of Houston, stoking more tension between the countries. risk appetite has improved this week amid progress in developing vaccines for the novel coronavirus and a historic stimulus deal in Europe, reducing the greenback's safe-harbour appeal and pushing investors back into emerging market plays.

"The U.S. fiscal negotiations would not be inspiring anyone to hold capital in the U.S. and while most think we will see a resolution around Phase 4 stimulus, we find little progress being made at this juncture," foreign exchange broker Pepperstone's head of research Chris Weston said.

Singapore shares .STI stood out with a 0.9% drop after the city state reported its biggest daily surge in virus cases in more than a month.

Jeffrey Halley, an analyst at trading platform OANDA, said a cut in dividend by real estate investment trust Mapletree Industrial Trust MAPI.SI was also a headwind as markets fear more cuts across sectors may follow.

Malaysia's ringgit MYR= firmed 0.3%, but was unaffected by data that showed the economy remained in deflationary territory for the fourth month in a row in June, in line with estimates. stocks .SETI edged lower as exports were seen shrinking 8%-10% this year and on news that a state of emergency in the country would be extended until the end of August. Indonesian 3-year benchmark yields are down 24.3 basis points at 5.68%

** Top losers on the Singapore STI .STI include Dairy Farm International Holdings DAIR.SI down 2.49%, Thai Beverage PCL TBEV.SI down 2.27% and Singapore Telecommunications STEL.SI down 1.57%

** In the Philippines, top index losers are Semirara Mining and Power SCC.PS down 7.95%, DMCI Holdings DMC.PS down 5.29% and Aboitiz Equity Ventures AEV.PS down 4.07%

Asia stock indexes and currencies at 0703 GMT

COUNTRY

FX RIC

FX DAILY %

FX YTD %

INDEX

STOCKS DAILY % STOCKS YTD %

Japan

JPY=

-0.07

+1.67

.N225

-0.58

-3.83

China

CNY=CFXS

+0.09

-0.16

.SSEC

0.22

9.11

India

INR=IN

-0.10

-4.32

.NSEI

0.18

-8.11 Indonesia

IDR=

+0.23

-5.24

.JKSE

-0.04

-18.84 Malaysia

MYR=

+0.33

-3.70

.KLSE

-0.20

0.25 Philippines

PHP=

-0.04

+2.65

.PSI

-1.17

-22.40

S.Korea

KRW=KFTC

+0.21

-3.25

.KS11

-0.01

1.41 Singapore

SGD=

+0.01

-2.78

.STI

-0.92

-19.16

Taiwan

TWD=TP

+0.51

+2.39

.TWII

0.61

3.97 Thailand

THB=TH

+0.00

-5.29

.SETI

-0.20

-13.02

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