EMERGING MARKETS-Malaysian stocks advance; U.S. yields weigh on Asia's currencies

  • Reuters
  • Stock Market News
EMERGING MARKETS-Malaysian stocks advance; U.S. yields weigh on Asia's currencies
Credit: © Reuters.

* Malaysia bourse at near two-week high

* Thai baht heads for half a percent weekly drop

* Singapore dollar, South Korea's won up for week

* Indian rupee set to lose more than 2% over the week

By Sameer Manekar

April 9 (Reuters) - Malaysian shares were boosted on Friday by a mega local merger of telecom giants Axiata and Telenor , while Asia's emerging currencies buckled under pressure from a late pick-up in U.S. bond yields and the dollar.

Even though the dollar was poised for its worst week so far this year, U.S. bond yields remained elevated and Asian currencies were set for a mixed end to the week. FRX/

South Korea's won KRW=KFTC , a beneficiary of improving global trade, and the Singapore dollar SGD= were on track to post weekly gains of about half a percent each, while Indonesia's rupiah IDR= and the Thai baht THB=TH were set for losses.

However, the greenback's weakness this week has provided some respite to Asia's risk-sensitive assets, with returns on the relatively high-yielding bonds in Indonesia and India falling sharply.

U.S. Federal Reserve Chairman Jerome Powell's dovish comments overnight, especially given the recent unexpected rise in weekly jobless claims, supported Treasuries, said Venkateswaran Lavanya, an analyst at Mizuho Bank.

In Malaysia, a deal between telecom firm Axiata Group AXIA.KL and Norway's Telenor ASA TEL.OL to combine their local mobile operations sent shares of Axiata and Telenor's local arm Digi.com DSOM.KL soaring, helping the broader market climb 0.5%. Thai baht THB= eased on Friday and was set to post a weekly drop of 0.5%. Stocks .SETI climbed 0.7% for the day.

On Friday, the central bank reiterated its accommodative stance, and warned the country might expand less than forecast this year due to a new wave of coronavirus infections. central bank official said the baht, despite recent weakness, would be volatile.

In India, the rupee INR=IN was set to slide more than 2% this week after the central bank announced a large government bond buying programme earlier this week and kept rates at record lows. The currency fell half a percent on Friday. week on investors' radar will be the first-quarter economic performance readings from China and Singapore, India's inflation and industrial output, as well as central bank policy meetings in Singapore and South Korea.

The Monetary Authority of Singapore (MAS) is expected to leave its policy unchanged next week, according to a Reuters poll. A separate poll showed the economy likely contracted slightly in the first quarter. the MAS poised to maintain its zero Singapore dollar nominal effective exchange rate appreciation stance next week, I don't see the Singapore dollar gaining anymore ground in the coming week," said Prakash Sakpal, senior economist, Asia, at ING.

Philippine markets were closed for a market holiday.

HIGHLIGHTS:

** Indonesian 10-year benchmark yields fall 1.6 basis points to 6.448%

** India's 10-year benchmark yields fell 1.8 basis points to 6.013%

** Axiata AXIA.KL hits 13-month high, while Digi.com DSOM.KL surges up to 20% to a 10-month high

Asia stock indexes and currencies at 0641 GMT COUNTRY

FX RIC

FX DAILY FX

INDEX

STOCKS STOCKS

%

YTD %

DAILY % YTD % Japan

JPY=

-0.17

-5.66 .N225

0.20

8.47 China

CNY=CFXS -0.11

-0.46 .SSEC

-0.76

-0.49 India

INR=IN

-0.45

-2.49 .NSEI

0.01

6.39 Indonesia

IDR=

-0.21

-3.57 .JKSE

0.07

1.63 Malaysia

MYR=

+0.00

-2.80 .KLSE

0.46

-1.07 Philippines PHP=

-

-1.13 .PSI

-

-8.33 S.Korea

KRW=KFTC -0.36

-3.12 .KS11

-0.36

8.99 Singapore

SGD=

-0.08

-1.54 .STI

-0.18

11.84 Taiwan

TWD=TP

-0.02

+0.17 .TWII

-0.43

14.40 Thailand

THB=TH

-0.13

-4.89 .SETI

0.69

8.29

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