EMERGING MARKETS-Philippine shares lead Asia higher, falling U.S. futures chip away at gains

  • Reuters
  • Stock Market News
EMERGING MARKETS-Philippine shares lead Asia higher, falling U.S. futures chip away at gains
Credit: © Reuters.

* FTSE Russel decision on Malaysia bonds due

* Vietnam Q1 GDP growth at 4.5% y/y

* Philippines to reimpose stricter COVID-19 curbs in capital

* U.S. futures down around 1%

March 29 (Reuters) - Philippine shares reversed early losses to rise 1% on Monday, leading Asia's emerging stock markets whose gains were clipped by U.S. futures falling late into the trading day.

Shares in Taiwan .TWII and Thailand .SETI held to 1% gains as investors await details of a proposed U.S. fiscal spending package that could spur the global economy. In Manila, shares .PSI initially fell 1.7% on stricter COVID-19 restrictions in the capital for this week.

U.S. futures, however, were down around 1% late into the Asian trading hours, keeping a cap on gains in the region.

"Risks to equity markets in the context of Friday's block sales could prove to be a counterbalancing force against supply-chain disruption in gauging the next steps for global yields," Stephen Innes, the chief global markets strategist at Axi, said.

He was referring to a series of block trades on Friday in the U.S. that caused stocks of companies to fall. Japan's Nomura Holdings Inc 8604.T and Credit Suisse CSGN.S have flagged a possible hit to earnings. concerns also remain and the dollar held firm with 10-year Treasury yields US10YT=TWEB still elevated, keeping pressure on Asia's risk-sensitive and higher-yielding currencies.

The Malaysian ringgit MYR= and yields on its benchmark 10-year bonds MY10YT=RR were flat ahead of the FTSE Russel decision on whether Malaysian debt will stay in the government bond index.

OCBC Bank expects Malaysia to stay in the index and be removed from the watchlist, which it says will see sentiment for bonds improve at the margin. A surprise removal could prompt outflows.

In other news, Malaysian exports in February rose a higher-than-expected 17.6% on shipments of electrical and electronic goods as well as commodity-based products. shares .VNI rose after data showed the economy grew 4.5% in the first quarter, supported by robust exports. growth prospects will continue to outshine regional peers," Mizuho Bank said in a note.

The southeast Asian nation has been successful in controlling the spread of COVID-19 through stringent measures, which have helped it reopen its economy earlier than most other regional peers.

Indian markets were closed for a public holiday.

HIGHLIGHTS:

** Indonesian 10-year benchmark yields are down 0.5 basis points at 6.744%

** DMCI Holdings Inc DMC.PS , SM Prime Holdings Inc SMPH.PS and JG Summit Holdings Inc JGS.PS led gains in the Philippines

Asia stock indexes and currencies at 0633 GMT COUNTRY

FX RIC

FX

FX

INDEX

STOCKS STOCKS

DAILY % YTD %

DAILY % YTD % Japan

JPY=

+0.10

-5.74 .N225 0.71

7.07 China

CNY=CFXS -0.21

-0.42 .SSEC 0.34

-1.24 India

INR=IN

-

+0.77 .NSEI -

3.76 Indonesia

IDR=

-0.21

-2.77 .JKSE 0.14

3.77 Malaysia

MYR=

+0.01

-2.99 .KLSE -0.18

-1.77 Philippines PHP=

-0.11

-0.94 .PSI

0.96

-7.45 S.Korea

KRW=KFTC -0.21

-4.02 .KS11 -0.16

5.66 Singapore

SGD=

-0.16

-1.96 .STI

0.63

11.74 Taiwan

TWD=TP

+0.26

-0.16 .TWII 1.04

11.83 Thailand

THB=TH

-0.38

-3.88 .SETI 0.95

9.69

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