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EMERGING MARKETS-Malaysia ticks higher after parliament approves budget

Published 26-11-2020, 02:14 pm
© Reuters.
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* Graphic: World FX rates http://tmsnrt.rs/2egbfVh

* Malaysia approves 2021 budget in key victory for PM

* Investors raise bullish positions on most Asian currencies- poll

* Singapore's October industrial output declines unexpectedly

By Shruti Sonal

Nov 26 (Reuters) - Malaysia's ringgit and stock markets gained ground on Thursday after parliament approved the 2021 budget in a major win for Prime Minister Muhyiddin Yassin, ensuring his political survival amid a deepening health and economic crisis.

Muhyiddin, who has faced infighting in his ruling coalition and a leadership challenge from opposition leader Anwar Ibrahim since coming to power, had called for cross-party support for the budget. good news for the markets. It means there will be no major hurdles for the PM in the short term," said Danny Wong, chief executive officer of fund management firm Areca Capital.

The ringgit MYR= was up 0.4% after the news, while the benchmark stock index .KLSE climbed 0.9%.

The gains came as other Asian currencies again inched higher to the dollar, with the Singapore dollar SGD= and Indonesia's rupiah IDR= benefitting from the past fortnight's general improvement in investors' appetite for higher-yielding assets globally.

A Reuters poll showed investors have raised bullish positions on most Asian currencies, on the back of promising COVID-19 vaccine trial results this month and the hopes for economic recovery next year they have stirred. outlook for Asian assets is improving further, said Mitul Kotecha, senior EM strategist at TD Securities.

"A few factors will likely drive the yuan and Asian FX higher going forward, including relatively stronger growth compared to other regions, improving external balances, likely less trade barriers under a Biden administration and the U.S. dollar's weakness," Kotecha added.

Stock markets in the region were mixed, with the Singapore bourse .STI , up about 18% for the month, dipping 0.8%.

The city-state's industrial output unexpectedly declined 0.9% year-on-year in October, missing economists' forecasts, with biomedical and electronics manufacturing cooling from the previous month's strong pace, official data showed. Malaysia's 10-year benchmark yield is up 2.2 basis points at 2.678%

** Top gainers on FTSE Bursa Malaysia Kl Index .KLSE include Top Glove Corporation Bhd TPGC.KL , Press Metal Aluminium Holdings and Telekom Malaysia Bhd TLMM.KL

** Thailand sees first trickle of tourists in October as curbs ease stock indexes and

currencies at 0819 GMT

COUNTRY FX RIC

FX

FX INDE STOCK STOCK

DAILY YTD %

X

S S YTD

%

DAILY

%

%

Japan

JPY=

+0.16 +4.15 <.N2 0.91 12.18

25>

China

S>

EC>

India

INR=IN +0.12 -3.31 <.NS 0.30 5.99

EI>

Indones IDR=

+0.28 -1.49 <.JK 1.42 -8.57 ia

SE>

Malaysi MYR=

+0.39 +0.49 <.KL 0.83 1.39 a

SE>

Philipp PHP=

-0.08 +5.37 <.PS -1.05 -11.3 ines

I>

6 S.Korea

C>

11>

Singapo SGD=

+0.06 +0.41 <.ST -0.60 -11.5 re

I>

0 Taiwan

TWD=TP +0.02 +4.49 <.TW 0.78 15.41

II>

Thailan THB=TH +0.08 -1.29 <.SE 0.88 -9.60 d

TI>

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