EMERGING MARKETS-Philippine stocks lead gains as jobs report signals recovery

Published 03-12-2020, 01:25 pm
Updated 03-12-2020, 01:30 pm

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh

* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I

* Rupiah sees worst day since Nov. 19

* Malaysia stocks firm 1%

By Shashwat Awasthi

Dec 3 (Reuters) - The Philippines led gains among emerging Asian stock markets on Thursday after an upbeat jobs report, while optimism around further coronavirus vaccine developments supported hopes of an economic recovery.

Other emerging currencies and stocks benefited from investors shunning the U.S. dollar in favour of riskier assets as Britain aimed to start vaccinating citizens next week, while investors weighed possibilities for more U.S. stimulus. FRX/

Manila shares .PSI surged for the third straight session and added 1.6% after data showed the country's unemployment rate in October eased further from a record-high hit in April, as coronavirus curbs were gradually lifted. good. Indeed, markets are reacting to the improving unemployment numbers," said Ruben Carlo O. Asuncion, chief economist at The Union Bank of the Philippines.

"Overall, the prospects are good and positive," Asuncion said, though he flagged "cautious optimism" in the absence of a vaccine in the country and concerns about new infections.

Indonesian stocks .JKSE gave up most of their early gains and the rupiah IDR= was set for its worst day in two weeks after President Joko Widodo called on Bank Indonesia (BI) to take on "a more significant role" in reforms. statement does mean that the ghost of BI independence has not been buried," said Kunal Kundu, an India-based economist at Societe Generale (PA:SOGN).

Proposals to expand BI's mandate and worries over its funding of burgeoning fiscal debt have raised doubts about the central bank's independence in recent months.

"BI being expected to play an important role in the recovery process suggests increasing dependence on BI, especially given lack of fiscal space to stimulate the weak economy," Kundu said.

"If the line between monetary and fiscal policy gets blurred, the central bank's independence will come under the scanner."

Meanwhile, Thailand stocks .SETI climbed 0.5% after officials on Wednesday announced plans for 43.5 billion baht ($1.44 billion) of additional stimulus to boost domestic consumption. were capped, however, by concerns of fresh virus outbreaks after Thailand reported several nationals infected with COVID-19 had illegally entered the country and skipped quarantine. there is light at the end of the tunnel, we need to be reminded that we are still in the tunnel," said Kobsidthi Silpachai, head of capital markets research at Kasikornbank.

"News of fresh COVID-19 cases might provide investors with an excuse to take money off the table."

HIGHLIGHTS:

** Thailand's 10-year government bond yields are down 3 basis points at 1.325%

** Top gainers on FTSE Bursa Malaysia Kl Index include RHB Bank RHBC.KL up 4.68%, Telekom Malaysia TLMM.KL up 3.38% and PETRONAS Chemicals Group PCGB.KL up​ 2.99%

** In the Philippines, top index gainers are Security Bank SECB.PS up 6.88%, Metro Pacific Investments MPI.PS up 6.38% and Bank of the Philippine Islands BPI.PS up​ 5%

Asia stock indexes and currencies

at 0647 GMT

COUNTRY FX RIC

FX

FX YTD INDE STOCK STOC

DAILY

%

X

S

KS

%

DAILY YTD

%

% Japan

JPY=

-0.05

+3.98 <.N2 0.03 13.3

25>

3 China

+6.11 <.SS 0.00 13.0

S>

EC>

9 India

INR=IN -0.18

-3.40 <.NS 0.24 8.03

EI>

Indones

IDR=

-0.21

-1.70 <.JK 0.18 -7.5

ia

SE>

4 Malaysi

MYR=

+0.07

+0.42 <.KL 0.93 1.56

a

SE>

Philipp

PHP=

-0.02

+5.41 <.PS 1.60 -7.9 ines

I>

5 S.Korea

+5.41 <.KS 0.57 22.4

C>

11>

5 Singapo

SGD=

-0.08

+0.45 <.ST 0.15 -12.

re

I>

65 Taiwan

TWD=TP +1.26

+5.98 <.TW -0.09 16.5

II>

0 Thailan THB=TH -0.03

-0.99 <.SE 0.46 -9.8

d

TI>

3

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