* Graphic: FX rates around the world tmsnrt.rs/2RBWI5E
* Dollar falls following mixed job data in the United States * Baht underperforms Asian FX COVID-19 troubles cause a decrease in Indonesian stocks.
Anushka Trivedi contributed to this article.
Reuters, July 5 – After U.S. jobs data suggested the recovery in the world’s largest economy was on pace but didn’t require a rapid withdrawal of Federal Reserve stimulus, most Asian equities moved up on Monday, exhibiting indications of diminishing volatility.
The Fed’s unexpected hawkish shift last month alarmed Asian markets, raising fears that the central bank’s dismantling of its bond-buying program and faster-than-expected rate hikes will lead to outflows from emerging economies.
Taiwan’s stock exchange gained 1%, while shares in South Korea, the Philippines, and Singapore all gained approximately 0.4 percent.
The dollar fell from three-month highs as bets on rate hikes faded, weighed down by the negative elements of the US nonfarm payrolls report, which showed that the unemployment rate climbed in June, despite the number of jobs added beating expectations.
The Indonesian rupiah, the South Korean won, and the Taiwanese dollar all gained 0.3 percent to 0.6 percent in reaction.
“Overall, market mood begins this week on a more bullish basis,” according to OCBC analysts, who added that more continuous outperformance on the labor front will be required to price in Fed predictions.
“It’s possible that it won’t happen until the third quarter of 2021.”
Because the US markets are off for the long Fourth of July weekend, trading was light. Investors are now waiting for the minutes of the Federal Open Markets Committee’s June meeting, which will be released on Wednesday, for additional information on tapering.
Stocks in pandemic-hit Indonesia fell 0.5 percent after the country reported the largest daily increase in coronavirus mortality, raising worries about whether the country’s restrictions will be lifted.
The Thai baht was hardly changed after losing nearly 4% in the previous three weeks.
JP Morgan analysts predicted that no large bets would be made until more clarity on the viability of the country’s “Phuket sandbox” project, which enables fully vaccinated travelers free movement on the island.
HIGHLIGHTS
** Indonesian 3-year benchmark rates are currently at 4.755 percent, up 3.6 basis points.
* The top gainers on the Singapore STI are Frasers Logistics & Commercial Trust (up 2.1%) and CapitaLand Integrated Commercial Trust (up 1.4%). ** The top index gainers in the Philippines are DMCI Holdings Inc (up 2.1%) and Aboitiz Power Corp (up 2.02%).
At 0421 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
-0.08 -7.10 -0.58 4.27 Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan
China +1.03 0.16 1.47 China +0.15 +1.03 0.16 1.47 China +1.03 0.16 1.47 China
India +0.00 -2.24 0.57 13.09 +0.00 -2.24 0.57 13.09 +0.00 -2.24 0.57
+0.33 -3.05 -0.41 0.32 Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia
Malaysia +0.18 -3.24 -0.33 -6.08 Malaysia +0.18 -3.24 -0.33 -6.08 Malaysia +0.18 -3.
Philippines -0.39 -2.60 0.21 -1.72 Philippines -0.39 -2.60 0.21 -1.72 Philippines -0.39 -2
S. Korea +0.45 -3.87 0.43 14.70 S. Korea +0.45 -3.87 0.43 14.70 S. Korea +0.45 -3.87 0.
+0.04 -1.89 0.28 10.33 Singapore +0.04 -1.89 0.28 10.33 Singapore +0.04 -1.89
Taiwan +0.34 +2.10 1.07 21.50 Taiwan +0.34 +2.10 1.07 21.50 Taiwan +0.34 +2.10
Thailand +0.00 -6.96 0.10 9.02 Thailand +0.00 -6.96 0.10 9.02 Thailand +0.00 -6.96
(Bengaluru reporting by Anushka Trivedi; editing by Lincoln Feast)/n
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