* Asian stocks are largely higher as the cenbank adopts a hawkish tone * Indonesian authorities say they are prepared for daily cases to exceed 60,000 * Stocks in Singapore have fallen as a result of the COVID-19 outbreak.
Anushka Trivedi contributed to this article.
15 JULY (Reuters) – On Thursday, most Asian currencies traded in a narrow range as fears of local COVID-19 outbreaks outweighed support from reasonably strong China data and a dovish tone from US Federal Reserve Chair Jerome Powell.
The won in South Korea was an anomaly, rising 0.5 percent after the central bank announced it was considering raising interest rates.
The Philippine peso fell 0.3 percent against the Indonesian rupiah, Singapore dollar, and Malaysian ringgit, while the Indonesian rupiah, Singapore dollar, and Malaysian ringgit all traded flat to higher.
The region’s biggest trade partner China’s second-quarter economic growth slowed, but monthly signs were optimistic, and hopes are building that Beijing will roll out more support measures to help the recovery.
Authorities in Indonesia braced for daily cases to exceed 60,000 as the Delta version spread faster than expected, while a new COVID-19 cluster was discovered in Singapore and Thailand recorded record deaths from the virus.
“The attention this morning is fully on the data flood out of China,” Mizuho analysts said in a client note, “but Asia’s emerging market currencies remain under stress as the COVID-19 situation worsens despite lockdowns.”
The dollar and Treasury yields fell modestly overnight after Powell told Congress that the U.S. economy was “still a ways off” from the levels the Fed wanted to see before beginning to remove its monetary stimulus.
As expectations of a rate hike faded, most Asian stocks rose, although Singapore’s stock index fell 0.6 percent. As restrictions were gradually loosened, the city-state reported its greatest number of coronavirus cases in ten months due to a cluster involving a nightclub.
The won had its best day in nearly three weeks as the Bank of Korea kept rates unchanged but warned it would review monetary policy at its next meeting if necessary.
“A policy rate hike is probable in October 2021, the first in our opinion in the region,” TD Securities analysts said, citing South Korea’s excellent trade performance as a reason for the country’s continued growth.
The Philippine peso’s dismal run continued as it declined for a second session, putting it on course to conclude the week lower for the seventh week in a row.
HIGHLIGHTS ** Philippine stock index falls 1.1 percent, with Universal Robina Corp down 2.3 percent as the biggest loss ** Singapore’s 10-year benchmark yield falls 4.1 basis points to 1.462 percent ** Indonesian 10-year benchmark yields fall 1.9 basis points to 6.487 percent
At 0444 GMT, Asian stock indices and currencies were trading.
INDEX STOCKS DAILY percent STOCKS YTD percent COUNTRY FX RIC FX DAILY percent FX YTD percent COUNTRY FX RIC FX DAILY percent FX YTD percent COUNTRY FX RIC FX DAILY percent FX YTD percent COUNTRY FX
+0.13 -6.02 -0.97 3.23 3.23 3.23 3.23 3.23 3.23 3.23 3.23 3.23 3.23 3.23 3.23
+0.06 +0.98 0.23 1.83 China China China China China China China China China China China China China China China China China China China
India +0.11 -1.93 0.22 13.64 +0.11 -1.93 0.22 13.64 +0.11 -1.93 0.
Indonesia -0.14 -3.14 0.80 0.80 Indonesia -0.14 -3.14 0.80 0.80 Indonesia -0.14 -3
Malaysia +0.12 -4.15 0.49 -6.61 Malaysia +0.12 -4.15 0.49 -6.61 Malaysia +0.12 -4.
Philippines -0.26 -4.61 -1.14 -5.35 Philippines -0.26 -4.61 -1.14 -5.35 Philippines -0.26 -4
S. Korea +0.59 -4.87 0.51 14.20 S. Korea +0.59 -4.87 0.51 14.20 S. Korea +0.59 -4.87 0.
Singapore +0.04 -2.37 -0.39 10.45 Singapore +0.04 -2.37 -0.39 Singapore +0.04 -2.37
Taiwan +0.16 +1.86 0.85 22.16 Taiwan +0.16 +1.86 0.85 Taiwan +0.16 +1.86 0.85
Thailand +0.06 -8.21 0.47 8.82 Thailand +0.06 -8.21 0.47 8.82 Thailand +0.06 -8.
(Bengaluru-based reporter Anushka Trivedi contributed to this report.)/n
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