EMERGING MARKETS-Regional trade deal lifts Asia shares, currencies

  • Reuters
  • Stock Market News
EMERGING MARKETS-Regional trade deal lifts Asia shares, currencies
Credit: © Reuters.

* 15 Asia-Pacific economies form world's largest free trade bloc

* South Korea, Taiwan gain 2%

* Singapore, China, Thailand up around 1%

* South Korean won hits near 2-year high against the dollar

By Nikhil Nainan

Nov 16 (Reuters) - South Korea, Taiwan and Singapore led broader Asian stock market gains on Monday as 15 Asia-Pacific economies signed a deal to form the world's largest free trade bloc, bolstering expectations for the pace of future economic growth.

With the mood also brightened by upbeat data from China and Japan, Bangkok .SETI and Shanghai .SSEC stocks both gained around 1%, with the Thai market hitting a more than three-month high. the weekend, Asia-Pacific economies signed a China-backed Regional Comprehensive Economic Partnership (RCEP), which accounts for 30% of the global economy and excludes the United States.

The group aims to lower tariffs and may aid in the post-pandemic recovery amid fractured relations between the Washington and Beijing. reach and ambitions of the RCEP, looking to abolish some 92% of traded goods tariffs, would be critical in deepening supply-chain linkages," Mizuho Bank said in a note, adding that hopes are "pinned on RCEP helping to catalyze the recovery in global trade and commerce."

Shares in Seoul .KS11 and Taipei .TWII climbed 2%, while rising over 1% in Singapore .STI .

Currencies of trade-dependent economies such as the Taiwanese dollar TWD=TP and South Korean won KRW=KFTC marked the biggest gains on the U.S. dollar, while Indonesia's rupiah IDR= , a favourite in the region to access the high-yielding local bond market, rose 0.2%.

South Korea's finance ministry issued a warning on the won's movement after it hit a near two-year high on the U.S. dollar. Dealers said the central bank was suspected of buying dollars to stem gains. were buoyed by factory output in China rising faster-than-expected in October, continuing on its recovery path, while Japan's economy grew at the fastest pace on record in the third quarter. Economics said Thailand's GDP data on Monday showed the worst is over for the tourism-reliant economy, but warned its recovery will likely be one of the slowest in the region given its reliance on foreign travellers.

The baht THB=TH dipped 0.1% higher ahead of a central bank policy meeting on Wednesday.

The week also houses policy meetings of the central bank's of Indonesia and the Philippines on Thursday.

Markets in India were closed for a public holiday.

HIGHLIGHTS:

** Indonesian three-year benchmark yields are up 7.5 basis points to 4.992%

** Genting Singapore Ltd GENS.SI led gains in the city-state; Morgan Stanley (NYSE: MS ) downgrades Singapore equities to equal-weight

** Morgan Stanley also says China will outperform emerging markets by less in 2021 than in 2020

Asia stock indexes and currencies at 0646 GMT COUNTRY

FX

FX

FX

INDEX

STOCKS STOCKS

RIC

DAILY % YTD %

DAILY % YTD % Japan

JPY=

+0.08

+3.89 .N225 2.05

9.51 China

CNY=CFXS +0.39

+5.82 .SSEC 0.88

9.48 India

INR=IN

-

-4.32 .NSEI -

5.03 Indonesia

IDR=

+0.18

-1.73 .JKSE 0.25

-13.09 Malaysia

MYR=

+0.15

-0.61 .KLSE 0.24

0.30 Philippines PHP=

+0.01

+5.16 .PSI

-0.74

-11.48 S.Korea

KRW=KFTC +0.57

+4.25 .KS11 1.97

15.71 Singapore

SGD=

+0.11

-0.09 .STI

1.38

-14.70 Taiwan

TWD=TP

+1.22

+5.64 .TWII 2.10

12.96 Thailand

THB=TH

-0.13

-0.99 .SETI 0.97

-13.95

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