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EMERGING MARKETS-Chinese yuan, Indonesian rupiah jump as dollar weakness boosts Asian FX

05/10/2021 04:28
EMERGING MARKETS-Chinese yuan, Indonesian rupiah jump as dollar weakness boosts Asian FX

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

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

Chinese yuan hits highest since June 15, 2018

Taiwan dollar trades just shy of 24-year high

Indonesian rupiah on track for best day since Jan. 4

India 10-yr bond yields up; calls for nation-wide lockdown grow

By Rashmi Ashok

- Most Asian currencies rose against the dollar on Monday, with the Indonesian rupiah and Chinese yuan making significant advances, as weak U.S. jobs data weighed on the greenback on hopes that interest rates would remain low for longer.

Data released on Friday showed U.S. job growth in April missed expectations by a wide margin, quelling worries that a pickup in inflation could force the Federal Reserve to raise interest rates earlier than outlined.

Higher U.S. rates typically make the dollar an attractive investment over riskier high-yielding assets, denting inflows into Asian markets.

China's onshore yuan CNY=CFXS rose 0.1% to its highest since June 15, 2018 at 6.423 per dollar and recovered all its losses booked this year, fuelling speculation that the central bank may step in to cool its rapid ascent. nL1N2MX069

Data on Friday showed exports beating forecasts in April, building on a raft of prints pointing to a strong economic recovery.

Indonesia's rupiah IDR=ID rose 0.8% to 14,160 against the dollar and was on track for its best session since Jan. 4, as recent data indicated an economic recovery was likely.

"Tentative signs of recovery in portfolio flows are setting in. Month-to-date inflows into equities and sovereigns are at $71.4 million as of May 7, and $100.6 million as of May 6, respectively," Maybank analysts wrote in a client note.

Benchmark 10-year bond yields in Indonesia ID10YT=RR fell nearly 5 basis points to 6.394% as investor demand rose, with yields at their lowest since Feb. 18. Equities .JKSE added 0.8%.

The Taiwan dollar TWD=TP traded 0.4% higher, slightly shy off the 27.74 per dollar mark it touched earlier in the day that was also its highest since May 20, 1997.

The currency took support from data released late on Friday that showed the island's April exports jumped 38.7%, smashing expectations.

While dollar weakness helped keep the Indian rupee INR=IN steady, broader sentiment remained weak, with bond markets showing the pressure. Ten-year bond yields IN10YT=RR rose to 6.03%, a near one-week high.

Calls to impose a nationwide lockdown have been growing amid a rapid rise in coronavirus cases, and several states have already entered lockdowns, which has led economists to cut growth expectations for Asia's third-largest economy. .BO

Philippine's peso PHP= traded 0.2% lower ahead of first-quarter gross domestic product data, which is expected to show a contraction in the economy when it is released on Tuesday.

A Reuters poll showed analysts expect the country's central bank to keep rates at a record low in its Thursday meeting, as a slow vaccination drive and ongoing wave of infections continue to pressure the economy. nL4N2MX1DF


HIGHLIGHTS:

** In the Philippines, top index gainers are GT Capital Holdings Inc GTCAP.PS up 5.39% and Robinsons Land Corp RLC.PS up 4.73%

** Indonesian 3-year benchmark yields are down 2.1 basis points at 5.021%​​

** Top gainers on the Jakarta stock index .JKSE include Trimitra Prawara Goldland Tbk PT ATAP.JK up 34.82% and Martina Berto Tbk PT MBTO.JK up 34.55%


Asia stock indexes and currencies at 0733 GMT





COUNTRY

FX RIC

FX DAILY %

FX YTD %

INDEX

STOCKS DAILY %

STOCKS YTD %

Japan

JPY=

-0.40

-5.32

.N225

0.55

7.56

China

CNY=CFXS

+0.02

+1.54

.SSEC

0.27

-1.30

India

INR=IN

+0.16

-0.44

.NSEI

0.84

6.91

Indonesia

IDR=

+0.60

-1.09

.JKSE

0.73

-0.13

Malaysia

MYR=

+0.05

-2.14

.KLSE

-0.23

-2.66

Philippines

PHP=

-0.19

+0.31

.PSI

0.94

-11.52

S.Korea

KRW=KFTC

+0.67

-2.48

.KS11

1.63

13.08

Singapore

SGD=

-0.12

-0.41

.STI

-0.46

12.01

Taiwan

TWD=TP

+0.33

+2.40

.TWII

-0.29

16.99

Thailand

THB=TH

+0.13

-3.73

.SETI

0.12

9.49


(Reporting by Rashmi Ashok in Bengaluru; Editing by Anil D'Silva)

(([email protected]; +918061822604;))