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EMERGING MARKETS-Indian stocks lead losses in Asia as inflation worries weigh

reuters.com · 11/11/2021 03:22
EMERGING MARKETS-Indian stocks lead losses in Asia as inflation worries weigh

Thai baht on track for worst session since Nov. 1

Philippine stocks down on profit-taking - analyst

Jakarta shares flat after scaling record highs

By Arundhati Dutta

- Indian and Philippine stocks fell on Thursday as broader Asian markets were weighed down by fears of policy tightening after a surge in U.S. inflation, while a firmer dollar kept the region's currencies under pressure.

The Thai baht THB=TH led losses among currencies with a 0.4% drop and was set for its worst day since Nov.1, as the greenback rose to its highest level in 2021. USD/

Overnight data showed U.S. consumer prices in October gained the most in 31 years, strengthening the case for the Federal Reserve to hike interest rates even as a majority of Asian central backs stick to accommodative settings. nL1N2S11BJ

"Near-term the case for an acceleration of Fed policy normalisation is growing... our view is of a minimum of two rate hikes in the second half of 2022," James Knightley, an analyst at ING, wrote in a note.

Indian shares .NSEI fell nearly 1%, while Philippine stocks .PSI dropped for a second day.

"After six days of gains, the (Philippine) market seems to be correcting and profit-taking has been happening," said Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines.

Philippine stocks had risen 5.2% in the six sessions of gains through Tuesday amid positive recovery projections as the economy grew more than expected in the third quarter.

Stocks in Singapore .STI were up 0.2% after swinging between small gains and losses throughout the session.

Transport firm ComfortDelGro CDGLF was the top loser, dropping nearly 4% after it halted plans for an initial public offering of its Australian unit.

Indonesian .JKSE stocks were flat after hitting a record high early in the session. Thai stocks .SETI eased 0.1% as an overnight plunge in oil prices drove index heavyweights PTT Exploration and Production Pcl PEXNY and PTT Pcl PETFF about 1% lower.

Among currencies, the Malaysian ringgit MYR=, Singapore's dollar SGD= and the Philippine peso PHP= fell between 0.1% and 0.3%


HIGHLIGHTS:

** Singapore's 10-year benchmark yield is up 4 basis points at 1.767%

** Indonesian 10-year benchmark yields are up 1.3 basis points at 6.17%

** Petroleum explorers PTT Exploration and Production Pcl PEXNY and PTT Pcl PETFF weigh on the Thai stock benchmark



Asia stock indexes and currencies at 0743 GMT




COUNTRY

FX RIC

FX DAILY %

FX YTD %

INDEX

STOCKS DAILY %

STOCKS YTD %

Japan

JPY=

-0.09

-9.44

.N225

0.59

6.68

China

CNY=CFXS

-0.20

+1.97

.SSEC

1.15

1.72

India

INR=IN

-0.15

-1.93

.NSEI

-0.85

27.77

Indonesia

IDR=

-0.11

-1.58

.JKSE

-0.03

11.74

Malaysia

MYR=

-0.28

-3.45

.KLSE

-0.04

-6.58

Philippines

PHP=

-0.22

-4.27

.PSI

-0.60

2.69

S.Korea

KRW=KFTC

+0.01

-8.01

.KS11

-0.18

1.79

Singapore

SGD=

-0.14

-2.49

.STI

0.17

13.82

Taiwan

TWD=TP

-0.16

+2.35

.TWII

-0.61

18.46

Thailand

THB=TH

-0.40

-8.88

.SETI

0.00

12.50



(Reporting by Arundhati Dutta in Bengaluru; Editing by Subhranshu Sahu)

((Arundhati.Dutta@thomsonreuters.com;))