Refile: EMERGING MARKETS-Rupiah slips as inflation points to lower rates, China data powers peers

CapitaLand Integrated Commercial Trust

01/09/2020 07:14

(Removes extraneous word at front of headline)
    * Graphic: World FX rates http://tmsnrt.rs/2egbfVh
    * Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
    * Malaysian ringgit hits over six-month high
    * Indian rupee tracks best day in two months

    By Shashwat Awasthi
    Sept 1 (Reuters) - Indonesia's rupiah weakened on Tuesday as
the country's inflation rate in August cooled to its lowest in
two decades, while other emerging Asian currencies benefited
from robust Chinese factory activity data and weakness in the
U.S. dollar.
    The rupiah  IDR=  eased 0.2% after three sessions of gains,
and Jakarta stocks  .JKSE  retreated to trade flat after
inflation eased below the central bank's target range, as the
country continues to battle a surge in coronavirus cases.
 urn:newsml:reuters.com:*:nJ9N2C203H  urn:newsml:reuters.com:*:nL4N2FX2PH
    Lower inflation puts more pressure on Indonesia's central
bank to reduce interest rates further, potentially reducing the
return of one of foreign investors' favourite Asia currency
carry trades and weakening the attraction of the rupiah. 
    There are, however, also concerns over the balance of policy
in the country, with the central bank's hands tied by the
rupiah's weakness this year. It is the biggest faller among
Asia's emerging currencies this year, having lost roughly 5%. 
    The dip in the currency on Tuesday contrasted with bullish
gains across Asia, as the Caixin/Markit survey of manufacturing
purchasing managers showed activity in China expanding at the
fastest clip in nearly a decade in August. urn:newsml:reuters.com:*:nL4N2FX1Q2
    The Malaysian ringgit  MYR= , often proxy for China's yuan,
firmed 0.4% to its highest since Feb.19, while the Singapore
dollar  SGD=  and the Thai baht  THB=TH  added 0.3% and 0.4%,
respectively.
    India, which suffered its worst economic contraction on
record in the June quarter, saw a rebound with the rupee
 INR=IN  set for its best day since July 2 and shares  .NSEI 
recouping some of Monday's steep losses.  urn:newsml:reuters.com:*:nL4N2FY18K
    Taiwan's dollar  TWD=TP  climbed 0.6% and was on course for
its best day since March 20, as the country established a new
bilateral economic dialogue with the United States amid
increasing geo-political jostling with China.  urn:newsml:reuters.com:*:nL1N2FX2F1
    Further losses in the greenback also provided more support,
with a number of leading "bears", or those betting on further
losses, arguing its decline has only just begun following last
week's shift in Federal Reserve policy to favour higher
inflation and growth over price control.  FRX/ 
    Among stocks, South Korea  .KS11  stood out with a near 1%
rally after Asia's fourth-biggest economy unveiled plans to ramp
up spending in the next few years to combat pandemic-induced
economic weakness.  urn:newsml:reuters.com:*:nL4N2FY0A0
    
    
    HIGHLIGHTS
    
    ** Singapore's 10-year benchmark yield is down 3.7 basis
points at 0.982%
    ** Top losers on the Singapore STI  .STI  include CapitaLand
Commercial Trust  CACT.SI  down 2.38%, Capitaland Mall Trust
 CMLT.SI  down 2.04% and SATS Ltd  SATS.SI  down 2%
    ** In the Philippines, top index gainers are Universal
Robina  URC.PS  up 3.99%, SM Investments  SM.PS  up 2.65% and
Bloomberry Resorts  BLOOM.PS  up 2.12%
    
    
   Asia stock indexes and currencies at 0418 GMT                                  
   COUNTRY      FX RIC     FX DAILY %   FX YTD %    INDEX   STOCKS DAILY %  STOCKS YTD %
    Japan        JPY=        +0.24       +2.81      .N225       -0.11          -2.29
    China      CNY=CFXS      +0.42       +2.10      .SSEC        0.04          11.38
    India       INR=IN       +0.00       -3.03      .NSEI        1.01          -5.47
  Indonesia      IDR=        -0.14       -4.80      .JKSE        0.06          -16.79
  Malaysia       MYR=        +0.43       -1.35      .KLSE        0.11          -3.89
 Philippines     PHP=        +0.09       +4.57      .PSI         0.30          -24.48
   S.Korea     KRW=KFTC      +0.37       -2.28      .KS11        1.01           6.92
  Singapore      SGD=        +0.27       -0.88      .STI        -0.51          -21.82
   Taiwan       TWD=TP       +0.60       +2.57      .TWII        0.52           5.50
  Thailand      THB=TH       +0.39       -3.36      .SETI        0.12          -16.94
 
 (Reporting by Shashwat Awasthi in Bengaluru)
 ((Shashwat.Awasthi@thomsonreuters.com))