EMERGING MARKETS-Most Asian stocks gain as U.S. yields ease

  • Reuters
  • Stock Market News
EMERGING MARKETS-Most Asian stocks gain as U.S. yields ease
Credit: © Reuters.

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

* Nasdaq futures up over 1%

* Indonesia's 10-year benchmark yield comes off a 5-mth high

* Philippine peso strengthens 0.5%

By Shruti Sonal

March 9 (Reuters) - Most emerging Asian share markets rose on Tuesday, tracking a recovery in U.S. equity futures following a pullback in Treasury yields, while regional currencies reversed early losses as the greenback gave up most of its gains.

U.S. 10-year Treasury yields US10YT=RR edged lower after hitting a one-year high on Monday. Nasdaq futures NQc1 bounced 1.1%, paring some losses from a sell-off in technology-related shares on Monday that pushed the index into correction territory.

Reflecting moves in U.S. yields, Indonesia's 10-year benchmark yield ID10YT=RR came off a five-month high hit earlier in the session, while its Indian counterpart IN10YT=RR also slipped.

Positive cues from U.S. Treasury Secretary Janet Yellen aided sentiment and boosted equities. Yellen said on Monday that U.S. President Joe Biden's $1.9 trillion coronavirus aid package would provide enough resources to fuel a "very strong" U.S. economic recovery. benchmark index .STI climbed over 1%, while India .NSEI and Malaysia .KLSE added about 0.5% each.

South Korean shares .KS11 , which shed as much as 2% earlier in the day on the back of a sell-off in technology stocks, recouped some losses to trade 0.7% lower by 0740 GMT.

A slipping U.S. dollar drove a recovery in most emerging Asian currencies. USD/

Philippine peso PHP= , the worst performing currency in the region so far this year, strengthened 0.5%. Singapore dollar SGD= and the Indian rupee INR= added 0.2% each.

However, bond yields have continued to rise as investors fret over a potential rise in inflation due to a flurry of pandemic-related stimulus measures.

While the U.S. Federal Reserve has downplayed the rise in yields so far, the European Central Bank will discuss on Thursday the merits of intervening. Asian bond yields have displayed strength, as investors continued to find refuge in them as well as relative stability offered by Asian junk-rated debt. risk of US nominal/real yields heading higher, this could pose a challenge to some central banks - notably Indonesia, to flexibly manage domestic financial conditions through its bond purchase program without undue pressure on IDR," Citi Research analysts wrote in a note.

Overall FX weakness will likely be more than welcomed by the central banks of Malaysia and Thailand to ease monetary conditions, they added.

Top Glove Corp Bhd TPGC.KL , the world's largest medical gloves manufacturer, climbed nearly 5% after posting a record profit for a fourth straight quarter as continued demand for gloves globally boosted sales. Thailand's 10-year government bond yields are down 11 basis points at 1.82%

** Top gainers on the Singapore STI .STI include Hongkong Land Holdings Ltd HKLD.SI , Comfortdelgro Corporation Ltd CMDG.SI , Sembcorp Industries Ltd SCIL.SI

Asia stock indexes and

currencies at 0810 GMT

COUNTRY FX RIC

FX

FX

INDEX STOCKS STOCK

DAILY YTD %

DAILY S YTD

%

%

% Japan

JPY=

-0.02 -5.18 .N225

0.99 5.77 China

.SSEC

-1.82 -3.28

S>

India

INR=IN

+0.25 -0.00 .NSEI

-0.14 6.82 Indones IDR=

-0.28 -2.43 .JKSE

-0.78 3.69 ia

Malaysi MYR=

-0.36 -2.43 .KLSE

0.39 -0.56 a

Philipp PHP=

+0.54 -0.95 .PSI

0.15 -5.22 ines

S.Korea .KS11

-0.67 3.57

C>

Singapo SGD=

+0.20 -1.94 .STI

0.79 8.84 re

Taiwan

TWD=TP

-0.31 +0.33 .TWII

0.21 7.61 Thailan THB=TH

-0.06 -2.70 .SETI

0.07 6.59 d

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