Emerging Markets: Travel stocks boost Singapore, Asian currencies ease

Sats

16/02/2021 09:01

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
    * Singapore budget: S$11 bln set aside for COVID-19 relief
    * Indonesia cenbank seen cutting interest rates this week
    * S. Korea stocks, won continue rally

    By Anushka Trivedi
    Feb 16 (Reuters) - Aviation and tourism stocks dominated
gains in Singapore on Tuesday after the city-state pledged more
fiscal support for the hard-hit sectors, while a likely flare-up
in U.S.-China tensions pressured most Asian currencies. 
    Singapore's 2021 budget unveiled S$11 billion ($8.31
billion) for COVID-19 relief and S$870 million in aid for the
aviation sector, sending the Straits Times Index  .STI  0.5%
higher a day after the economy posted a smaller-than-expected
contraction in the fourth quarter.  urn:newsml:reuters.com:*:nS7N2E700I
    Shares of Singapore Airlines  SIAL.SI  climbed 1.4% to top
the index, while in-flight catering service provider SATS Ltd
 SATS.SI  rose 1%. 
    DBS analysts expect the 2021 budget deficit target to be
between S$10 billion and S$12 billion, sharply down from the
record S$74.2 billion figure pencilled in last year to aid the
economy. The official figure was yet to be released as the
presentation was ongoing.  urn:newsml:reuters.com:*:nL1N2KL004
    In line with global markets, hopes that vaccine progress
would aid an economic recovery kept all Asian equities in the
black, with Philippine shares  .PSI  climbing 1.2% to lead
gains.
    On the flip side, the Singapore dollar  SGD= , the
Philippine peso  PHP=  and the Indonesian rupiah  IDR=  fell
after the offshore yuan  CNH=D3  weakened on media reports that
Beijing may curb exports of rare earth minerals that are crucial
to U.S. defence contractors.  urn:newsml:reuters.com:*:nFWN2KM05L    
    The development threatens to worsen ties between the two
economic giants, which are yet to show any signs of improvement
under U.S. President Joe Biden's administration.  urn:newsml:reuters.com:*:nL1N2KH08A
    The rupiah was also hit by investors pricing in a likely 25
basis point interest rate cut at the Bank Indonesia's (BI)
meeting on Thursday.  urn:newsml:reuters.com:*:nL1N2KL0DG
    Meanwhile, South Korea's won  KRW=KFTC  rose for a fifth day
and the benchmark stock index KOSPI  .KS11  closed at a
three-week high as its government struck a deal with Novavax
 NVAX.O  and Pfizer  PFE.N  to get vaccines for 23 million more
people. KRW/  urn:newsml:reuters.com:*:nL1N2KL1PG         
    China and Taiwan's financial markets were closed for a
holiday.
    
    HIGHLIGHTS
    
    ** Indonesian 10-year benchmark yields are up 5.1 basis
points at 6.297%
    ** Thailand  .SETI  and Indonesia  .JKSE  shares up 0.3%
    ** Top gainers on the Jakarta stock index  .JKSE  include
MNC Land Tbk PT  KPIG.JK , up 34.3%, and Bank Bumi Arta Tbk PT
 BNBA.JK , up 24.7%

 Asia stock indexes and currencies at 0759 GMT                                           
 COUNTRY      FX RIC       FX DAILY %   FX YTD %     INDEX  STOCKS DAILY %   STOCKS YTD %
 Japan         JPY=             -0.08      -2.09   .N225              1.28          11.02
 India         INR=IN           -0.11      +0.42   .NSEI             -0.29           9.21
 Indonesia     IDR=             -0.07      +0.86   .JKSE              0.41           5.30
 Malaysia      MYR=             +0.07      -0.22   .KLSE              0.05          -1.13
 Philippines   PHP=             -0.48      -0.34   .PSI               1.22          -1.34
 S.Korea       KRW=KFTC         +0.12      -1.26   .KS11              0.52          10.08
 Singapore     SGD=             -0.09      -0.23   .STI               0.40           3.49
 Thailand      THB=TH           +0.03      +0.30   .SETI              0.16           5.23
 


($1 = 1.3231 Singapore dollars)

 (Reporting by Anushka Trivedi in Bengaluru; Editing by Devika
Syamnath)
 ((Anushka.Trivedi@thomsonreuters.com; +918061823241;))