EMERGING MARKETS-Tech sell-off hurts S.Korea stocks; most Asian FX fall on rising bond yields

  • Reuters
  • Stock Market News
EMERGING MARKETS-Tech sell-off hurts S.Korea stocks; most Asian FX fall on rising bond yields
Credit: © Reuters.

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

* South Korean benchmark hits over 2-month low

* Indonesia's 10-year benchmark yield scales a 5-month high

By Shruti Sonal

March 9 (Reuters) - South Korean shares fell as much as 2% on Tuesday, as heavyweight technology stocks tracked an overnight sell-off in their Wall Street peers, while rising bond yields hurt appetite for most emerging Asian currencies.

South Korea's benchmark KOSPI .KS11 fell for a fourth straight session, hitting its lowest in over two months.

Samsung Electronics 005930.KS slipped 1.5% and peer SK Hynix 000660.KS dropped 3.3%, in tandem with a sell-off in technology-related shares which pushed the Nasdaq into correction territory - down 20% from its peak - on Monday.

Most regional currencies weakened against the dollar, as the greenback held near a 3-1/2-month high, on the back of higher bond yields and expectations of faster economic recovery from the pandemic in the United States. FOREX/

MSCI's emerging market currency index .MIEM00000CUS dropped to a three-month low, with high-yielding currencies hit hard.

"Export-led Asian currencies have not taken kindly to prospects of a more normalised global economy paved by vaccinations", DBS Bank analysts said in a note.

The South Korean won KRW=KFTC and Malaysian ringgit MYR= fell 0.5% each, while the Indonesian rupiah IDR= shed 0.4%.

Bond yields in the region scaled new peaks, as investors continued to find refuge in the higher yields and relative stability offered by Asian junk-rated debt. 10-year benchmark yield ID10YT=RR hit a 5-month high, while its Malaysian counterpart MY10YT=RR hits its highest levels in a nearly a year.

Foreign investors have bought a net $41.5 billion of Chinese bonds since the start of 2021, already about a third of what they did in all of last year. Inflows into other emerging Asia bond markets this year are $2.8 billion, or 61% of last year's total.

On the equities front, the trade-reliant Singapore bourse .STI climbed over 1%, while India .NSEI and Malaysia .KLSE added about 0.8% each.

Positive cues from U.S. Treasury Secretary Janet Yellen aided sentiment. Yellen said on Monday that U.S. President Joe Biden's $1.9 trillion coronavirus aid package would provide enough resources to fuel a "very strong" U.S. economic recovery. Indonesian 10-year benchmark yields are up 6 basis points at 6.817%

** Top gainers on the Singapore STI .STI include Jardine Matheson Holdings Ltd JARD.SI , Hongkong Land Holdings Ltd HKLD.SI , Comfortdelgro Corporation Ltd CMDG.SI

** Indonesia approves AstraZeneca vaccine for emergency use stock indexes and

currencies at 0431 GMT

COUNTRY FX RIC

FX FX YTD INDEX STOCKS STOCKS

DAILY

%

DAILY YTD %

%

%

Japan

JPY=

-0.25 -5.40 <.N22 0.96

5.74

5>

China

SSE ) -0.18 -1.67

S>

C>

India

INR=IN

+0.14 -0.12 <.NSE

0.82

7.84

I>

Indones IDR=

-0.35 -2.50 <.JKS -0.13

4.37 ia

E>

Malaysi MYR=

-0.46 -2.52 <.KLS

0.79 -0.16 a

E>

Philipp PHP=

+0.40 -1.08 <.PSI

0.06 -5.31 ines

>

S.Korea

3.13

C>

1>

Singapo SGD=

+0.01 -2.13 <.STI

1.27

9.36 re

>

Taiwan

TWD=TP

-0.18 +0.45 <.TWI -0.08

7.29

I>

Thailan THB=TH

-0.26 -2.88 <.SET

0.00

6.52 d

I>

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