EMERGING MARKETS-Indonesia, Philippine hit early 2021 highs on Wall Street rebound
Oct 7, 2021
Oct 6 (Reuters) - Shares in Indonesia and the Philippines
hit multi-month peaks on Wednesday, leading other Asian emerging
markets higher as a rebound in global sentiment helped offset
broader worries about elevated inflation and the Federal
Reserve's tapering timeline.
Rising oil, gas and coal prices also boosted energy stocks
on the Malaysian stock market, driving the index around
1% higher, with oil services firm Dialog Group and
Petronas Chemicals among the top gainers.
Emerging Asian stocks tracked a rebound on Wall Street
overnight after tech stocks recovered from Monday's sell-off as
U.S. Treasury yields rose on concerns about inflation, the
timing of Fed tapering and the U.S. government's ability to
raise the debt ceiling.
Stocks in Jakarta rose as much as 2.4% to their
highest since January, having rallied around 4% since the end of
In the Philippines, shares jumped 1.3% to their
highest since mid-February. Globe Telecom rose over 9%
to a record high, having rallied more than 25% since the end of
August as it expands its fibre rollout and gains revenue share
On the currency front, however, Asian units dipped against a
firmer dollar, which inched higher ahead of U.S. jobs data this
Friday that may offer more insight into the timing of the Fed's
plans to tighten policy.
Reaction among Emerging Asian currencies has been fairly
muted to the September announcement that the Fed would likely
begin reducing its monthly bond purchases as soon as November.
In the so-called "taper tantrum" of 2013, a Fed announcement
that it would begin cutting back on bond purchases led to a
sharp sell-off in risk-sensitive emerging market currencies.
"The expected tantrum of taper this time is over-hyped,"
said Kunal Kundu, an economist with Societe Generale.
"The tantrum in 2013 was because of the suddenness of the
announcement on an absolutely unprepared market. This time, the
market is actually expecting a taper," he said, adding the Fed's
communication has ruled out any surprise.
The Reserve Bank of New Zealand lifted its official cash
rate for the first time in seven years on Wednesday, as
developed economies begin to unwind pandemic-era monetary
Chinese markets remained closed for a holiday.
** Indonesian 10-year benchmark yields are down 1.3 basis
points at 6.31%
** Top two gainers in Malaysia were Sime Darby Plantation
Bhd and Kuala Lumpur Kepong Bhd
Asia stock indexes and currencies at 0644 GMT
COUNTRY FX FX FX INDEX STOCKS STOCKS
RIC DAILY % YTD % DAILY % YTD %
Japan -0.19 -7.54 -1.05 0.31
China - +1.25 - 2.74
India -0.22 -2.07 0.16 27.67
Indonesia +0.06 -1.40 2.33 7.62
Malaysia -0.06 -3.83 0.93 -5.07
Philippines -0.34 -5.56 1.09 -1.15
S.Korea -0.30 -8.90 -1.82 1.21
Singapore -0.17 -2.81 0.31 8.23
Taiwan -0.19 +1.87 -0.41 11.27
Thailand -0.41 -11.65 0.47 12.59
SOURCE : https://www.reuters.com/article/emerging-markets-asia/emerging-markets-indonesia-philippine-hit-early-2021-highs-on-wall-street-rebound-idUSL4N2R20YT