EMERGING MARKETS-Philippines trails Asia rally as virus fears mount

  • Reuters
  • Stock Market News
EMERGING MARKETS-Philippines trails Asia rally as virus fears mount
Credit: © Reuters.

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

* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA

* Philippine shares fall the most in the region

* Rupiah on edge as markets weigh potential rate cut this week

By Shriya Ramakrishnan

July 13 (Reuters) - Philippine shares extended last week's sharp losses on Monday, trailing gains for emerging and developed markets across Asia as the country reported its biggest single-day increase in coronavirus casualties.

The Philippines and Indonesia both reported big spikes in coronavirus infections over the weekend, with Manila Health Undersecretary Maria Rosario Vergeire confirming 162 deaths and more than 2,100 new confirmed infections on Monday. stock market eked out some gains, as China shares again pulled regional markets broadly higher, but Manila was down as much as 0.6%, its third day of losses in five sessions.

"The market sees a downward bias as it awaits the government's decision on the community quarantine measures in the capital for the second half of July," said Jennifer Lomboy, a fixed income fund manager at First Metro Asset Management.

South Korean shares .KS11 and the won outperformed KRW=KFTC as investors clung on to hopes for a better-than-expected U.S. earnings season and more upbeat economic data from China this week.

Beijing is due to release a raft of data this week including trade, retail sales and industrial output figures for June along with second-quarter growth readings.

"China's Q2 GDP is poised for a return to positive growth, which is in stark contrast to the global economy that is expected to suffer the worst of the downturn in Q2," Mizuho Bank analysts said in a note.

On currency markets, the peso PHP= found some support from weakness in the dollar, holding firm at 49.4 while the Indonesian rupiah IDR= stuck to a tight range ahead of a central bank meeting later in the week.

Bank Indonesia cut its benchmark rate for the third time this year last month and officials there have since unveiled a $40 billion financing scheme, including billions in central bank bond-buying, to help prop up businesses and infrastructure.

"Another 25 basis point cut is still expected before the year end, but Bank Indonesia does have some room to manoeuvre on when to implement it," said Jingyi Pan, a market strategist at IG Asia.

Goldman Sachs (NYSE: GS ) analysts said they expected Bank of Korea to keep its policy rate on hold at its meeting this week after cutting by a quarter of a percentage point to a record low of 0.50% in May.

The won was up around a third of a percent in early trade.

HIGHLIGHTS:

** Top gainers on the Thailand's SETI .SETI include Multi-National Residence Fund MNRFu.BK up 12.33% at 3.28 baht, Delta Electronics Thailand PCL DELTA.BK up ​ 11.15% at 77.25 baht ** In the Philippines, top index losers are Metro Pacific Investments Corp MPI.PS down 3.38% at 3.43 peso; First Gen Corp FGEN.PS down 3.01% at 24.2 peso ** Thailand's 10-year government bond yields are up 5 basis points at 1.32%

Asia stock indexes and

currencies at 0355 GMT

COUNTRY FX

FX FX YTD

INDEX

STOCKS STOCKS

RIC

DAILY %

%

DAILY % YTD % Japan

< JPY=

+0.07

+1.69 .N225

1.84 -4.04

>

China

+0.03

-0.50 .SSEC

1.27 12.33

CFXS>

India

0.00

-5.08 .NSEI

0.78 -10.82

IN>

Indonesi

-0.07

-3.41 .JKSE

0.44 -19.78 a

>

Malaysia

+0.14

-3.97 .KLSE

0.60

0.79

>

Philippi

+0.08

+2.51 .PSI

-0.60 -21.17 nes

>

S.Korea

+0.36

-3.65 .KS11

1.45 -0.74

KFTC>

Singapor

+0.19

-3.16 .STI

-0.16 -17.83 e

>

Taiwan

+0.59

+2.26 .TWII

0.89

1.53

TP>

Thailand

+0.03

-4.32 .SETI

0.78 -13.85

TH>

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