Asian currencies subdued; rupiah and peso slip
An MSCI gauge of stocks in emerging Asia touched their highest since mid-November 2021, while a subset of equities in ASEAN countries, dominated by Singapore, jumped to an over 9-month peak.
Singapore's benchmark scaled to a new intraday all-time high for the 14th consecutive session, last trading at a record level of 4,225.79 points, with strong inflows into high-dividend industrials, telecom and safe-haven driving the rally.
Southeast Asia's largest bank, DBS, and defence firm, ST Engineering, last traded at record highs, while Singapore Airlines rose to its highest in two years and telecom Singtel hit a near nine-year peak.
DBS analysts predict increased investor interest, particularly from retail investors, in high-yielding alternatives such as domestic REITs and banks if returns on fixed deposits and short-term government debt securities stay below 2%.
In Indonesia, the benchmark jumped 1%, and was on track to close at its highest since mid-December last year. The index has clocked gains for the 11th straight day, on hopes of monetary easing and a favourable tariff deal with the US
Maybank economists expect further cuts of 50 basis points with risks skewed to more easing, depending on Indonesian rupiah stability.
Elsewhere in emerging Asia, stocks in Manila added 0.6%, while those in Bangkok erased early 1% gain to trade marginally lower in the afternoon trade.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
2 hours ago
- Business Recorder
India's equity benchmarks set to open near one-month low
India's equity benchmarks are likely to open on Monday near the previous session's one-month closing low, with uncertainty over trade talks with the U.S. and weaker-than-expected results from Kotak Mahindra Bank weighing on sentiment. The Gift Nifty futures were trading at 24,841 points as of 8:04 a.m. IST, indicating that the Nifty 50 will open near Friday's close of 24,837. The benchmark hit its lowest level since June 20 at 24,806.35 points in the previous session. The Nifty 50 and 30-stock Sensex have logged four consecutive weekly losses due to weak earnings, foreign outflows and uncertainty over U.S.-India trade deal. Negotiations between India and the United States remained deadlocked over tariff cuts on agriculture and dairy products, dimming hopes of an interim deal ahead of U.S. President Donald Trump's August 1 deadline. Meanwhile, the U.S. struck a framework trade agreement with the European Union over the weekend, averting a bigger trade war between the two allies, which account for almost a third of global trade. The easing global trade tensions buoyed equities globally. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2%, just shy of the almost four-year high it touched last week. Kotak Mahindra Bank will be in focus on the day after India's No. 3 lender by market capitalisation reported a drop in first-quarter profit on Saturday, as it set aside more funds for potential bad loans and saw a contraction in lending margins.
Business Recorder
3 days ago
- Business Recorder
Asian stocks slip from highs, dollar gains as markets brace for crucial week
TOKYO: Asian shares eased from highs on Friday, with Japanese markets retreating from a record peak, as investors locked in profits ahead of a crucial week that includes U.S. President Donald Trump's tariff deadline and a host of central bank meetings. The dollar gained against the yen after bouncing off a two-week low on Thursday, helped by some firm U.S. economic data, while Japan's currency was weighed down by political uncertainty amid media reports Prime Minister Shigeru Ishiba will step down. Benchmark Japanese government bond yields hovered just below the highest since 2008. Japan's broad Topix index, which had jumped more than 5% over the previous two sessions to reach an all-time high, pulled back 0.7%. The Nikkei slipped 0.5% from Thursday's one-year high. Hong Kong's Hang Seng lost 0.5% and mainland Chinese blue chips declined 0.2%. Australia's equity benchmark declined 0.5%. At the same time, U.S. S&P 500 futures added 0.2%, after the cash index edged up slightly to a new record closing high overnight, buoyed by robust earnings from Google parent Alphabet. The tech-heavy Nasdaq also marked a record high. MSCI's gauge of stocks across the globe edged down 0.1%, but remained just below an all-time peak from Thursday. The index is on course for a 1.3% weekly advance, buoyed in large part by optimism for U.S. trade deals with the European Union and China, following an agreement with Japan this week. Next week, in the U.S. alone, investors need to contend with Trump's August 1 deadline for trade deals, a Federal Reserve policy meeting, the closely watched monthly payrolls report, and earnings from the likes of Amazon, Apple, Meta and Microsoft. The Bank of Japan has its own policy announcement on Thursday, and Prime Minister Ishiba's Liberal Democratic Party holds a meeting the same day. That's after the European Central Bank held rates steady on Thursday, pausing its easing campaign as it waits to assess any impact from U.S. tariffs. The euro ended the session down 0.2% against a buoyant dollar, and was little changed on Friday at $1.1743 . The U.S. currency advanced 0.3% to 147.37 yen , adding to Thursday's 0.4% gain. Trump kept the pressure on Fed Chair Jerome Powell to cut rates after a rare presidential visit to the central bank on Thursday, although he said he did not intend to fire Powell, as he has frequently suggested he would. U.S. 10-year Treasury yields edged down to 4.39% on Friday, effectively erasing an advance on Thursday. Equivalent Japanese government bond yields eased 0.5 basis point to 1.595%, just off this week's high of 1.6%, a level last seen in October 2008. JGB yields have been rising on concerns the political scale is tilting more towards fiscal stimulus, after big gains for opposition parties backing consumption tax cuts in Sunday's upper house election. Pressure is building on the more fiscally hawkish Ishiba to quit after his coalition lost its majority in the vote, after doing the same in lower house elections last October. Gold was flat at around $3,368 per ounce, keeping it on course for a 0.5% rise this week. Brent crude futures gained 0.3% to $69.35 a barrel, while U.S. West Texas Intermediate crude futures added 0.2% to $66.18 per barrel.
Business Recorder
3 days ago
- Business Recorder
China stocks at 3-1/2-year high on trade optimism
HONG KONG: China and Hong Kong stocks rose on Thursday as rare earth and tourism shares rallied, and signs of easing US-China tensions lifted investor sentiment. The Shanghai Composite index climbed up 0.7% to 3,605.73, the highest close since January 2022. It is now on track to register a fifth week of gain, which would mark its longest winning streak in nearly one and a half years. The blue-chip CSI300 index was also up 0.7%. Leading gains onshore, the rare earth sector surged 5.2% to a fresh three-year high. The tourism sector rose 3.4%, while China tourism group duty free index jumped by the 10% daily trading limit following a launch plan for the Hainan Free Trade Port. In Hong Kong, the Hang Seng Index added 0.5% to 25,667.18, the highest close since November 2021. Chinese stocks have been steadily rising in recent weeks, buoyed by Beijing's efforts to curb excessive competition and overcapacity and signs of improving US-China trade relations. The Shanghai Composite Index has surged nearly 19% from its most recent low in April, nearing the 20% gain used to define a technical bull market. 'Although there hasn't been any unexpected change in the top-down macroeconomic picture, there are still many structural opportunities within the stock market,' analysts at Cinda Securities said in an note. Fresh signs of easing US-China trade tensions also helped lift sentiment. President Donald Trump said on Wednesday that the United States was in the process of completing a trade deal with China. Around the region, MSCI's Asia ex-Japan stock index was up 0.3%, while Japan's Nikkei index gained 1.6%.
