asia

EMERGING MARKETS-Evergrande clouds Asia FX trading; shares in Singapore, Indonesia rise


Oct 4 (Reuters)Asia’s emerging currencies traded in tight ranges on Monday as investors worried about China’s property sector and the timing of Federal Reserve tapering, while shares in Singapore and Indonesia outperformed.

Shares in Singapore gained more than 1%, buoyed by gains in Singapore Technologies Engineering STEG.SI after it agreed to buy Roper Technologies Inc’s ROP.N TransCore business for $2.68 billion.

Indonesia’s stock market .JKSE climbed 1.6% to hit its highest since March.

News that China Evergrande shares 3333.HK were suspended on Monday after the embattled developer missed a key interest payment on an offshore bond for the second time last week kept a lid on Asian currency gains.

The Indonesian rupiah IDR= and Malaysian ringgit MYR= advanced 0.2% each against the dollar, while the region’s other currencies were little changed on the day.

Chinese markets are closed until Thursday for a holiday, while South Korean markets were also shut.

Expectations that elevated inflation could prompt the Federal Reserve to bring forward its tapering timeline also weighed on emerging market currencies.

Data on Friday showed core U.S. PCE price index, the Federal Reserve’s preferred inflation measure for its flexible 2% target, increased 3.6% in August from a year earlier, its biggest rise in three decades.

Rising commodity prices and ongoing supply disruptions have also fuelled expectations global inflation could stay higher for longer.

“The market has priced in the start of taper, but probably not the full impact of it depending on the pace,” analysts at OCBC said.

Investors will next focus on the release of U.S. labour data this Friday.

Before then, markets will eye a speech by U.S. Trade Representative Katherine Tai later on the Biden administration’s long-awaited China trade strategy.

HIGHLIGHTS:

** Indonesian 10-year benchmark yields down 2.4 basis points at 6.335%​​

** Top gainers in Singapore include Genting Singapore Ltd, Capitaland Investment Ltd CAPN.SI and CapitaLand Integrated Commercial Trust CMLT.SI

** Hopson Development to buy Evergrande unit -Global Times, citing media reports

Asia stock indexes and currencies at 0345 GMT

COUNTRY

FX

RIC

FX

DAILY %

FX

YTD %

INDEX

STOCKS

DAILY %

STOCKS

YTD %

Japan

JPY=

-0.02

-7.05

.N225

-0.95

3.84

China

CNY=CFXS

+1.25

.SSEC

2.74

India

INR=IN

+0.00

-1.42

.NSEI

0.00

25.39

Indonesia

IDR=

+0.21

-1.65

.JKSE

1.36

5.60

Malaysia

MYR=

+0.19

-3.60

.KLSE

0.01

-6.30

Philippines

PHP=

-0.04

-5.40

.PSI

0.31

-2.72

S.Korea

KRW=KFTC

-8.62

.KS11

5.07

Singapore

SGD=

-0.05

-2.66

.STI

1.30

8.68

Taiwan

TWD=TP

+0.08

+2.24

.TWII

-0.85

11.53

Thailand

THB=TH

-0.15

-11.02

.SETI

0.76

11.60

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

Asian stock marketshttps://tmsnrt.rs/2zpUAr4

(Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Ana Nicolaci da Costa)

((NikhilKurian.Nainan@thomsonreuters.com; Twitter: @NikhilKurianN))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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