Emerging Markets: Asian stocks decline on China worries, coal plunge hurts Indonesia

KEPPEL DC REIT

28/10/2021 06:19

* U.S. bans China Telecom's unit
    * Indonesian rupiah, stocks decline as coal tumbles again
    * Malaysia Sept trade data beats expectations

    By Anushka Trivedi
    Oct 28 (Reuters) - Asian stocks fell across the board on
Thursday as investors were unsettled by risks of renewed
U.S.-China tension, potentially adding to existing global supply
chain issues, while the Indonesian rupiah led losses among
currencies.
    Stocks of trade-reliant Asian countries like Philippines
 .PSI , Singapore  .STI  and Indonesia  .JSKE  shed between 0.3%
and 0.7%. Shanghai equities  .SSEC  dropped the most, down 1.1%,
with the yuan  CNY=CFXS  easing 0.1%.    
    Investor focus was squarely on developments in China,
grappling with an economic slowdown due to an energy crunch and
crisis in its property sector, with fresh COVID-19 outbreaks
adding to jitters.
    News of the U.S. telecoms regulator revoking China Telecom's
 0728.HK  authorisation to operate late on Wednesday compounded
worries for market participants only too aware that tensions
between the world's two biggest economies previously threw
global trade into a disarray.  urn:newsml:reuters.com:*:nL1N2RM1QE
    "Focus in the region may revolve around ongoing COVID-19
risks in China, with infections in Beijing at an eight-month
high," said Yeap Jun Rong, market strategist at retail trading
platform IG.
    The ban on China Telecom also "fuelled concerns that further
escalation could possibly bring back more U.S. scrutiny on
Chinese technology players, weighing on sentiment."
    Jakarta shares fell as much as 1.2%, to a two-week low, with
energy stocks leading the decline as coal futures plunged after
China stepped up ways in which it can control prices. Indonesia
is the world's top thermal coal exporter.  urn:newsml:reuters.com:*:nL1N2RO02K
    The rupiah  IDR=  fell 0.2% on the same news, having lost
1.3% over the past 10 days since Beijing pledged to intervene in
the coal market.  
    The Philippine peso  PHP=  and the South Korean won
 KRW=KFTC  also slipped, while most other currencies traded flat
as souring risk sentiment supported the greenback's safe-haven
status in the Asia trading session.
    The Malaysian ringgit  MYR=MY  recouped early losses to gain
0.1% after September's trade data beat expectations handily due
to a surge in petroleum products and palm oil exports.
 urn:newsml:reuters.com:*:nB8N2CC022
    
    
    HIGHLIGHTS
    
    ** Singapore's 5-year benchmark yield is up 12.3 basis
points at 1.395%​​
    ** Indonesian 10-year benchmark yields are up about 0.89
basis points at 6.162%
    ** Top losers on the Singapore STI  .STI  include: Keppel DC
REIT  KEPE.SI , down 1.7% and Singapore Technologies Engineering
Ltd  STEG.SI , down 1.03%
    
    
 Asia stock indexes and currencies at                                            
 0440 GMT                                                          
 COUNTRY       FX RIC        FX DAILY %  FX YTD %    INDEX  STOCK    STOCKS YTD %
                                                                S  
                                                            DAILY  
                                                                %  
 Japan          JPY=              +0.24     -9.07   .N225   -0.92            5.05
 China          CNY=CFXS          -0.10     +2.04   .SSEC   -0.93            1.61
 India          INR=IN            +0.19     -2.42   .NSEI   -0.61           29.45
 Indonesia      IDR=              -0.20     -1.11   .JKSE   -1.02            9.30
 Malaysia       MYR=              +0.10     -3.11   .KLSE   -0.67           -3.36
 Philippines    PHP=              -0.20     -5.42   .PSI    -1.07            0.18
 S.Korea        KRW=KFTC          -0.03     -7.19   .KS11    0.20            5.50
 Singapore      SGD=              +0.06     -1.97   .STI    -0.39           12.72
 Taiwan         TWD=TP            +0.01     +2.37   .TWII   -0.37           15.47
 Thailand       THB=TH            +0.33     -9.89   .SETI    0.01           12.32
 


    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Graphic: World FX rates     https://tmsnrt.rs/2RBWI5E
Asian stock markets    https://tmsnrt.rs/2zpUAr4
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Anushka Trivedi in Bengaluru; Editing by Kenneth
Maxwell)
 ((Anushka.Trivedi@thomsonreuters.com; +918061823241;))