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EMERGING MARKETS-Most Asian stocks set for monthly losses; currencies steady

EMERGING MARKETS-Most Asian stocks set for monthly losses; currencies steady

reuters.com · 04/29/2022 04:30
EMERGING MARKETS-Most Asian stocks set for monthly losses; currencies steady

Indonesia market closed for a holiday

Singapore stocks hit highest level in three weeks

Most Asian currencies firm

By Tejaswi Marthi and Indranil Sarkar

- Most Southeast Asian equity indexes were set to post monthly losses on Friday after witnessing a brutal sell-off in markets in recent weeks, while investors placed cautious bets ahead of an impending rate hike by the U.S. Federal Reserve.

Stocks in the region, however, logged small gains on Friday, taking positive cues from an upbeat Wall Street session overnight with strong earnings reports lifting risk sentiment.

Equities in Singapore .STI advanced 0.9% to touch their highest level since April 8 after earnings from top lenders DBS Group Holdings DBSM.SI and OCBC OCBC.SI beat estimates. nL2N2WQ3G5

Stocks in Seoul .KS11 also jumped 1% to a one-week high, helped by strong first-quarter earnings at Samsung Electronics and other major domestic companies. nL2N2WR032

Still, Singapore and South Korea benchmark indexes were set for monthly losses along with Taiwan .TWII and the Philippines .PSI. Stocks in Manila were set for a third consecutive monthly decline.

"Market dynamics this week reflected that recession fears are growing," analysts at Barclays said in a note. "While recession concerns are still a potential risk, higher inflation is a fact, and policy response at the moment is aimed to tackle inflation."

However, given doubts over economic growth in China after extensive lockdowns, as well as headwinds from the Russia-Ukraine conflict, global central banks face tough decisions on tapering monetary stimulus.

"Fears of too much monetary tightening triggering the next recession have markets observing higher volatility levels as we move closer to next week's U.S. Federal Reserve meeting," Barclays analysts added.

Most Asian currencies were steady on Friday, with the South Korean won KRW=KFTC firming about 1.3% against the dollar.

The Malaysian ringgit MYR=, Singapore dollar SGD= and Philippine peso PHP= all firmed between 0.2% and 0.4%.

Markets in Indonesia .JKSE were closed due to a public holiday.


HIGHLIGHTS:

** Indonesian 10-year benchmark yields fall 32 basis points to 6.963%

** China's factory activity likely contracts at a faster pace in April - Reuters poll nL3N2WQ0ZH

** DBS DBSM.SI shares rose 3% while OCBC OCBC.SI jumped 3.5%


Asia stock indexes and currencies at 0503 GMT





COUNTRY

FX RIC

FX DAILY %

FX YTD %

INDEX

STOCKS DAILY %

STOCKS YTD %

Japan

JPY=

+0.25

-11.83

.N225

+1.75

-6.76

China

CNY=CFXS

-0.03

-4.11

.SSEC

0.37

-17.95

India

INR=IN

-0.07

-2.88

.NSEI

0.18

-0.45

Indonesia

IDR=

+0.00

-1.69

.JKSE

0.45

9.84

Malaysia

MYR=

+0.11

-4.39

.KLSE

0.17

2.08

Philippines

PHP=

-0.04

-2.67

.PSI

-1.44

-4.39

S.Korea

KRW=KFTC

+0.72

-5.90

.KS11

0.93

-9.58

Singapore

SGD=

+0.26

-2.47

.STI

0.81

8.39

Taiwan

TWD=TP

+0.07

-6.15

.TWII

0.92

-9.05

Thailand

THB=TH

+0.19

-2.81

.SETI

0.14

0.75



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

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

(Reporting by Indranil Sarkar and Tejaswi Marthi in Bengaluru; Editing by Sherry Jacob-Phillips)

((Indranil.Sarkar@thomsonreuters.com; Mobile: +91 7022132226;))