EMERGING MARKETS-Rupiah falls on bond outflows; most Asian FX, equities eye weekly loss

  • Reuters
  • Stock Market News
EMERGING MARKETS-Rupiah falls on bond outflows; most Asian FX, equities eye weekly loss
Credit: © Reuters.

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

* Indonesia benchmark bond yields up ~38 bps this week

* Rupiah may stay subdued for a while - DBS analyst

* S. Korea shares, won rebound to close up

* Indian currency markets shut

By Anushka Trivedi

Feb 19 (Reuters) - The Indonesian rupiah hit a three-week low on Friday as investors dumped the country's bonds after an interest rate cut amid a dour economic outlook and rising U.S. yields, while most Asian stocks and currencies were headed for a weekly loss.

Benchmark U.S. Treasury yields US10YT=RR returned to a near one-year high hit earlier this week, putting pressure on riskier Asian stocks and currencies across the board.

A subdued greenback USD= failed to lift the Thai baht THB=TH , the Malaysian ringgit MYR=MY and Singapore's dollar SGD= as they traded flat to lower on the day. Their respective stock exchanges .SETI , .KLSE and .STI were on track to shed 0.5% to 1.5% for the week.

The rupiah IDR= fell 0.4%, off about 1.6% from its Tuesday's high, as a crippling COVID-19 infection wave led Bank Indonesia (BI) to trim rates by 25 basis points (bps) the previous day and downgrade its economic growth forecast for 2021. bonds, favoured by foreign investors for their high yields, also suffered the brunt of rising U.S. yields and in turn pressured the rupiah.

"Markets are looking past BI's rate cut and are focusing on the uptick in U.S. Treasury yields," said Wei Liang Chang, a macro strategist at DBS Bank.

"With equity risk appetite softening and U.S. yields staying firm, the rupiah could stay on the back foot, with sentiment further dampening after BI trimmed its growth expectations for the year."

Indonesian 10-year benchmark yields ID10YT=RR were up 9.1 basis points to 6.624%, their highest since early November. The yields have jumped about 38 bps so far this week.

A bright spot in markets, South Korea's stocks .KS11 and won KRW=KFTC rebounded to close higher as the government mulled a fifth round of COVID-19 cash handouts. currency markets INR=IN were closed for a holiday, while shares .NSEI fell 0.3% on profit-taking in lenders. .BO

HIGHLIGHTS

** Rupiah ends about 0.6% weaker for the week

** Top losers on the Singapore STI .STI include: Jardine Matheson Holdings Ltd JARD.SI down 3.9% and Keppel DC REIT KEPE.SI down 2.4%

** In the Philippines, top index gainers are: Aboitiz Equity Ventures Inc AEV.PS up 3.8% and Ayala Corp AC.PS up 3.1%

Asia stock indexes and currencies at 0746 GMT

COUNTRY

FX RIC

FX DAILY % FX YTD %

INDEX STOCKS DAILY % STOCKS YTD % Japan

JPY=

+0.05

-2.24 .N225

-0.72

9.38 China

CNY=CFXS

+0.38

+0.99 .SSEC

0.57

6.42 India

INR=IN

0.00

+0.57 .NSEI

-0.35

7.76 Indonesia

IDR=

-0.39

-0.18 .JKSE

0.33

4.04 Malaysia

MYR=

-0.07

-0.57 .KLSE

0.22

-2.95 Philippines PHP=

-0.02

-0.89 .PSI

1.12

-2.99 S.Korea

KRW=KFTC

+0.15

-1.78 .KS11

0.68

8.15 Singapore

SGD=

+0.03

-0.35 .STI

-0.99

1.28 Taiwan

TWD=TP

+1.35

+1.90 .TWII

-0.51

10.92 Thailand

THB=TH

+0.03

-0.13 .SETI

-0.82

3.41

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100

Related Articles