EMERGING MARKETS-Indonesia rupiah flat, stocks jump ahead of cenbank rate decision

Published 18-02-2021, 10:26 am
© Reuters.
USD/JPY
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USD/SGD
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JP225
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BNPP
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USD/IDR
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USD/MYR
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USD/PHP
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DX
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STEL
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NSEI
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US10YT=X
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JKSE
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KLSE
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KS11
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TWII
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SSEC
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SETI
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PSI
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AEV
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STI
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JGS
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UNIT
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MARI
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* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

* Indonesia central bank announces rate decision later

* S. Korea shares drop as virus cases climb

* Singtel reports data breach, shares drop

By Anushka Trivedi

Feb 18 (Reuters) - Indonesia's rupiah was little changed while shares rose on Thursday ahead of the country's central bank meeting where chances of an interest rate cut seemed to dim after rising U.S. yields this week dented the currency.

Indonesia bonds were sold off heavily on Wednesday and the rupiah slipped, prompting several analysts to scale back bets of a 25 basis point interest rate cut as the central bank has prioritised currency stability in the past. rupiah IDR= was steady at 14,010 per dollar after easing 0.6% in the previous session. Stocks .JKSE jumped 0.9%, after falling the previous day as U.S. benchmark Treasury yields US10YT=RR hit a one-year high.

"The necessary condition has always been that there shouldn't be much turmoil in markets, hence, the probability of the cut does go down because of what has been happening," said Arup Raha, head of ASEAN Economics at BNP Paribas (PA:BNPP).

"However, our official call is that there will be monetary accommodation from Bank Indonesia (BI) over the course of 2021 and this may be one of those meetings where they will cut."

BI should continue to provide a backstop for the purchase of government bonds, he added, stressing on the need for monetary policy to work in tandem with government's fiscal support.

Indonesia financed its 2020 fiscal deficit and COVID-19 stimulus by raising debt, a good portion of which was bought by the central bank.

Other currencies in the region found some support in the dollar's =USD mild losses in Asian trade. The Malaysian ringgit MYR=MY , Singapore dollar SGD= and the Philippine peso PHP= all rose around 0.1%.

South Korea stocks .KS11 slid 1.2% to a one-week low as daily coronavirus cases rose by another 621, unchanged from a day earlier when it marked the highest level in 39 days. shares .SSEC rallied up to 2% while the yuan CNY=CFXS ticked up on resuming trade after a week-long Lunar New year holiday.

Singapore Telecommunications STEL.SI slumped 3% to weigh on the Straits Times Index .STI after the telco reported a privacy breach, which led to data of some consumers being stolen. Philippine .PSI and Malaysia shares .KLSE fell 1.1% and 0.2%, respectively

** JGS Summit JGS.PS and Aboitiz Equity AEV.PS are top losers on the Philippine index

** Top gainers on the Jakarta index: PT Mahaka Radio Integra Tbk MARI.JK , up 27% and PT Nusantara Inti Corpora Tbk UNIT.JK , up 25%

Asia stock indexes and currencies at 0423 GMT

COUNTRY

FX RIC

FX DAILY % FX YTD %

INDEX STOCKS DAILY % STOCKS YTD % Japan

JPY=

+0.01

-2.46 .N225

-0.16

10.20 China

CNY=CFXS

+0.10

+1.20 .SSEC

0.39

5.65 India

INR=IN

+0.00

+0.45 .NSEI

0.09

8.88 Indonesia

IDR=

+0.00

+0.21 .JKSE

0.44

4.62 Malaysia

MYR=

+0.02

-0.40 .KLSE

-0.19

-2.15 Philippines

PHP=

-0.03

-0.82 .PSI

-1.33

-3.73 S.Korea

KRW=KFTC

+0.20

-1.73 .KS11

-1.13

7.83 Singapore

SGD=

+0.02

-0.55 .STI

-0.41

2.27 Taiwan

TWD=TP

+1.69

+2.06 .TWII

0.40

11.50 Thailand

THB=TH

-0.10

-0.17 .SETI

-0.02

4.50

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