* Most EM Asia currencies inch higher
* U.S. inflation figures eyed
By Shashwat Awasthi
July 13 (Reuters) - Shares in Thailand were set on Tuesday
for the best day in six weeks as the central bank assuaged
concerns over an overheating economy, while Philippine stocks
slid more than 1% after ratings agency Fitch downgraded its
outlook on the archipelagic nation.
Stocks in Manila slumped 1.7% on their worst day
since April 30 after Fitch lowered its outlook to "negative"
from "stable", stoking fears that other ratings agencies could
follow suit.
"Market reaction was expected as investors now fret possible
action from either Moody's or S&P in the near term," Nicholas
Mapa, a senior economist at ING said, adding that he does not
expect a substantial pick-up in growth momentum amid the
pandemic curbs.
Most emerging Asian currencies inched higher ahead of U.S.
inflation data, while stock markets held firm on the back of
better-than-expected economic data from China.
South Korea's KOSPI index added 0.8% to lead gains
in the region, while stocks in Singapore gained 0.7%.
THAI TROUBLES TO TAPER?
The Bank of Thailand (BoT) said on Tuesday headline
inflation should decline and hover around the lower end of its
1%-3% target range by the end of 2021, and called a jump in
second-quarter inflation "temporary".
The comments pushed the benchmark index 1.1% higher,
helped the baht strengthen 0.3%, and provided some
respite after fresh coronavirus curbs dented risk appetite last
week.
The BoT "did aid the market by underpinning prolonged easing
monetary policy ... i.e. the BoT will likely keep the policy
rate on hold until 2024 in our view," Poon Panichpibool, a
market strategist at Krung Thai Bank said.
The central bank also sought to allay investor concerns on
Monday by insisting that financial stability remained robust,
just hours after it warned the economy may miss growth
forecasts.
"Thailand has structurally placed too many eggs in the
basket of tourism/exports as growth engines," said Kobsidthi
Silpachai, head of capital markets research at Kasikornbank.
"Because of this structural dependency on external demand,
the only true solution to this economic malaise is herd immunity
... The other monetary/fiscal policies are largely just
supporting actors and not the real heroes."
HIGHLIGHTS:
** Singapore's 10-year benchmark yield up 1.4
basis points at 1.471%.
** In the Philippines, top losers are LT Group down
6.2%, Ayala Land down 3.5%, and DMCI Holdings
down 3.2%.
** Top losers on the Jakarta stock index include Sarana
Meditama Metropolitan down 11%, Adi Sarana Armada
down 7.7%, and Sekar Bumi down 7%.
** For a graphic on world FX rates, click tmsnrt.rs/2RBWI5E
** For a graphic on Asian stock markets, click tmsnrt.rs/2zpUAr4
Asia stock indexes and
currencies at 0632 GMT
COUNTRY FX RIC FX FX INDEX STOCKS STOCKS
DAILY YTD % DAILY % YTD %
%
Japan -0.01 -6.45 <.N22 0.52 4.64
5>
China <CNY=CFX +0.13 +0.94 <.SSE 0.42 2.58
S> C>
India +0.12 -1.90 <.NSE 0.54 12.85
I>
Indones +0.10 -3.01 <.JKS -0.20 1.46
ia E>
Malaysi +0.00 -4.03 <.KLS 0.30 -6.75
a E>
Philipp +0.24 -4.17 <.PSI -1.72 -4.83
ines >
S.Korea <KRW=KFT +0.14 -5.17 <.KS1 0.77 13.85
C> 1>
Singapo +0.01 -2.26 <.STI 0.75 11.50
re >
Taiwan +0.09 +1.76 <.TWI 0.19 21.14
I>
Thailan +0.25 -8.04 <.SET 1.16 8.17
d I>
(Reporting By Sherry Philips)
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