* Most EM Asian currencies are rising * Inflation data from the United States is expected * Stocks in Indonesia are falling as growth forecasts are lowered.
Shashwat Awasthi is the author of this article.
Reuters, July 13 – Philippine equities fell more than 1% on Tuesday after credit ratings firm Fitch cut the country’s outlook, raising fears that other agencies could follow suit and downgrade the country’s economy, which has been hit hard by the coronavirus pandemic.
Fitch downgraded the Philippines’ investment grade rating to ‘negative’ from’stable’ on Monday, citing worsening fiscal finances and increasing credit profile risks, though it maintained the country’s investment grade rating.
Even while officials rapidly downplayed the change and said the drag from the pandemic, which resulted in a record 9.6% economic decline in 2020, was transient, equities in Manila gave up all of Monday’s gains.
“Market reaction was predicted as investors now fear Moody’s or S&P action in the near future,” said Nicholas Mapa, a senior economist at Dutch bank ING.
As the Philippines grapples with pandemic-related curbs, Mapa expects the country’s high debt-to-GDP and deficit-to-GDP levels to worsen in the next months, and he does not expect a significant improvement in growth momentum.
Indonesian stocks were slightly down elsewhere in the region, a day after the central bank lowered its growth prediction for 2021 and as the largest Southeast Asian country saw another record daily surge of COVID-19 cases.
Other developing Asian markets were mostly unchanged as investors anticipated US inflation data later Tuesday and Federal Reserve Chair Jerome Powell’s presentation this week for clues on when the Fed would start tapering.
South Korea’s won gained 0.2 percent, and the KOSPI index gained 0.8 percent, leading advances in the region, while Taiwanese and Singaporeese equities both gained 0.6 percent.
According to Margaret Yang, a strategist at news and analysis website DailyFX.com, a higher-than-expected core inflation number in the US “may feed inflation concerns and propel the US dollar higher, weighing on equities markets.”
HIGHLIGHTS: ** Singapore’s 10-year benchmark yield is now 1.477 percent, up 1.9 basis points.
Ayala Land is down 2.6 percent, Universal Robina Corp is down 2.5 percent, and LT Group is down 2.3 percent in the Philippines.
Sarana Meditama Metropolitan is down 11.6 percent, Adi Sarana Armada is down 7.3 percent, and Jembo Cable Company is down 7 percent on the Jakarta stock index.
* Graphic: FX rates around the world tmsnrt.rs/2RBWI5E
* Stock markets in Asia: tmsnrt.rs/2zpUAr4
At 03:26 GMT, Asian stock indices and currencies were trading.
COUNTRY FX RIC FX FX INDEX STOCKS STOCKS DAILY YTD percent DAILY YTD percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent percent
Japan -0.03 -6.47 0.78 4.91 -0.03 -6.47 0.78 4.91 -0.03 -6.47
+0.17 +0.98 0.11 2.27 China China China China China China China China China China China China China China China China China China China
India +0.00 -2.02 0.00 12.24 +0.00 -2.02 0.00 12.24 +0.00 -2.02 0.00
+0.00 -3.11 -0.04 1.62 Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia
Malaysia +0.10 -3.94 0.35 -6.70 Malaysia +0.10 -3.94 0.35 -6.70 Malaysia +0.10 -3.
Philippines +0.08 -4.32 -1.26 -4.38 Philippines +0.08 -4.32 -1.26 -4.38 Philippines +0.08 -4.
S.Korea +0.24 -5.07 0.70 13.77 S.Korea +0.24 -5.07 0.70 13.77 S.Korea +0.2
Singapore +0.16 -2.11 0.76 11.51 +0.16 -2.11 0.76 11.51 +0.16 -2.11 0.
Taiwan +0.11 +1.79 0.83 21.93 Taiwan +0.11 +1.79 0.83 21.93 Taiwan +0.11 +1.
+0.12 -8.15 1.01 8.02 Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand
(Shashwat Awasthi contributed reporting, and Richard Pullin edited the piece.)/n
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