Situs Panduan dan Solusi Terkini

Emerging Markets – Asian currencies acquire on dollar weakness, easing China fears

  • Share
banner 468x60

    * China shares snap 4-day losing streak
    * S.Korean won adds 0.7%, yuan up 0.4% 
    * Taiwan stocks close 1.6% higher ahead of GDP data

    By Harish Sridharan
    July 29 (Reuters) - Most emerging Asian currencies firmed on
Thursday as the dollar lost ground following dovish signals from
U.S. Federal Reserve Chair Jerome Powell, while Chinese stocks
and the yuan rose following Beijing calmed investor nerves over
mounting regulatory risks.   
    The greenback slipped to multi-week lows following Powell
in a news conference said the U.S. job market still had "some
ground to cover" prior it would be time to pull back emergency
economic support measures.
    The yuan was up 0.4%, while the South Korean won
 added 0.7% and led gains among currencies in the
    China's securities regulator held a virtual meeting on
Wednesday night with executives of top global investment banks,
seeking to silent market jitters following a massive sell-off in
Chinese shares this week, sources told Reuters.
    "Measured and tentative relief on China's regulatory
crackdown may be boosting EM Asia FX thanks to the yuan (CNH)
bounce, and thereby exaggerating gains against USD," analysts at
Mizuho said in a note. 
    "This relief is not to be mistaken for post-FOMC 'risk on'
or a fundamental change in the pre-taper USD trend.'   
    The Chinese government will also allow local companies to go
public in the United States as lengthy as they meet listing
requirements, CNBC reported here,
 citing sources.
    Equities in China closed 1.5% higher, rebounding
from a sharp sell-off over the former few days.
    Stocks in Singapore added 0.9%, while Indonesia
 and India were up 0.6% and 0.5%, respectively.  
    Equities in Taiwan closed 1.6% higher, recording 
their biggest jump since May 28 ahead of the country's
second-quarter economic data expected on Friday.
    Taiwan's economy is expected to have expanded at a slower
pace in the second quarter as a rare spike in COVID-19 cases
hurt consumption, a Reuters poll showed.     
    The ringgit, Thai baht and Taiwan dollar
 traded 0.2% higher.  
    ** Indonesian 10-year benchmark yields up 1 basis points at
    ** Taiwan shares post biggest jump since May 28
    ** China shares up 1.5%, biggest jump since May 25

  Asia stock indexes and                              
 currencies at   0720 GMT                        
                     DAILY  YTD %     X   DAILY  S YTD
                         %                    %      %
 Japan               +0.07  -5.99  <.N2    0.73   1.23
 China    <CNY=CFX   +0.35  +0.94  <.SS    1.49  -1.77
          S>                       EC>           
 India               +0.15  -1.61  <.NS    0.51  12.93
 Indones             +0.00  -3.07  <.JK    0.60   2.44
 ia                                SE>           
 Malaysi             +0.18  -4.82  <.KL   -0.09  -6.95
 a                                 SE>           
 Philipp             -0.24  -4.63  <.PS    0.36  -9.01
 ines                              I>            
 S.Korea  <KRW=KFT   +0.71  -5.26  <.KS    0.18  12.85
          C>                       11>           
 Singapo             +0.15  -2.44  <.ST    0.87  11.43
 re                                I>            
 Taiwan              +0.24  +1.95  <.TW    1.56  18.13
 Thailan             +0.21  -8.91  <.SE    0.14   6.24
 d                                 TI>           
 (Reporting by Harish Sridharan in Bengaluru; Editing by
Ramakrishnan M.)


banner 336x280
banner 120x600
  • Share