EMERGING MARKETS-Baht, peso plumb multi-month lows to lead Asian FX falls

Jun 22, 2021

 

June 21 (Reuters) - Thai baht plumbed a more than
eight-month low on Monday, the Philippine peso dropped to
2-1/2-month troughs and stock markets across Asia fell as
broad-based dollar strength took a toll across emerging markets.
    The Thai Baht weakened 0.6%, hitting its lowest
since Oct. 1, as the bullish dollar technical bias remained
intact, Reuters technical analyst Catherine Tan said. She said a
break for the exchange rate above 31.60 could trigger more
dollar buying.
    Indonesian markets also face the double whammy of spiking 
coronavirus infections, with the country reporting its highest
daily cases since Jan. 30 on Sunday and the most daily
fatalities since early April.
    Indonesia's coordinating Minister for Economic Affairs
Airlangga Hartarto said the country would tighten mobility
restrictions in "red zones", where infections had been rising
more quickly, for two weeks starting Tuesday.
    The rupiah weakened 0.4% to hit its lowest in seven
weeks, extending losses for a sixth straight session. 
    "A firmer dollar, taken together with increased concerns
over Indonesia's economic recovery in the wake of rising
COVID-19 cases, are likely to keep the rupiah under pressure
over the short term," said Mitul Kotecha, chief EM Asia and
Europe strategist at TD Securities.
    "Reduced risk appetite for Indonesian assets is evident in
continued outflows from Indonesia's stock market."
    The dollar hit a two-month high on Friday after the U.S.
Federal Reserve surprised markets by signalling
sooner-than-expected interest rate hikes, which Kotecha said
implied "Asian FX will struggle to make headway over the weeks
ahead".
    Asian equities fell, taking cues from Wall Street's sharp
decline on Friday, with stocks in Malaysia, Singapore
 and Thailand all sliding more than 1%.

    Taiwan stocks closed 1.5% lower to mark their worst
session in over one month, as daily COVID-19 infections falling
below 100 failed to cheer investors.
    The country's Ministry of Economic Affairs reported that the
island's export orders rose 34.5% year-on-year in May, but
missed Reuters poll expectations of a 40.15% jump. 
    
    HIGHLIGHTS:    
    
    ** Top loser on the Jakarta stock index was
Nusantara Pelabuhan Handal Tbk PT, down 7%
    ** Top loser on FTSE Bursa Malaysia Kl Index was
Sime Darby Plantation Bhd, down 4.77%
    ** The biggest laggards in the NSE index were UPL Ltd
, Wipro Ltd and Hindalco Industries Ltd
.

  Asia stock indexes and                              
 currencies at   0753 GMT                        
 COUNTRY  FX RIC        FX     FX  INDE  STOCKS  STOCK
                     DAILY  YTD %     X   DAILY  S YTD
                         %                    %      %
 Japan               +0.15  -6.16  <.N2   -3.29   2.07
                                   25>           
 China    <CNY=CFX   -0.23  +0.93  <.SS    0.12   1.62
          S>                       EC>           
 India               -0.34  -1.41  <.NS   -0.10  12.06
                                   EI>           
 Indones             -0.38  -2.67  <.JK    0.02   0.49
 ia                                SE>           
 Malaysi             -0.27  -3.09  <.KL   -0.91  -3.23
 a                                 SE>           
 Philipp             -0.31  -1.32  <.PS   -0.35  -4.38
 ines                              I>            
 S.Korea  <KRW=KFT   -0.21  -4.27  <.KS   -0.83  12.78
          C>                       11>           
 Singapo             +0.10  -1.77  <.ST   -1.26   9.17
 re                                I>            
 Taiwan              -0.38  +2.03  <.TW   -1.48  15.82
                                   II>           
 Thailan             -0.57  -5.25  <.SE   -0.72  10.49
 d                                 TI>     

SOURCE : https://www.reuters.com/article/emerging-markets-asia/emerging-markets-baht-peso-plumb-multi-month-lows-to-lead-asian-fx-falls-idUSL3N2O31N9