Most Asian stock markets rose on Tuesday
as China’s manufacturing activity beat expectations and offered
further signs of recovery in the world’s second-largest economy,
helping offset worries over a surge in global coronavirus cases.
Chinese factory activity expanded at a stronger pace in
June, according to the official manufacturing Purchasing
Manager’s Index, underpinned by faster expansion in production,
as the economy continues to recover after the government lifted
strict lockdowns and ramped up investment.
Positive leads from Wall Street overnight on the back of
upbeat U.S. housing data also added to the relief.
The onshore Chinese yuan firmed 0.2% to 7.066
against the U.S. dollar, putting it on track for its best
performance in nearly two weeks, while Chinese stocks
China passed national security legislation for Hong Kong
aimed at increasing its control over the financial hub,
according to the city’s Cable TV. Hong Kong stocks,
however, were unfazed, climbing 1.2%.
Thai stocks jumped more than 1%. Late on Monday, the
country announced plans for a 50 billion baht ($1.62 billion)
fund to help small businesses affected by the coronavirus
Singapore stocks jumped 1%, boosted by real estate
heavyweight Capitaland Ltd’s 3% rise and gains in top
lenders such as DBS Group and Oversea-Chinese Banking
Most currencies, however, were largely unchanged, except for
the Taiwan dollar which rose 0.7%.
The Indonesian rupiah traded 0.2% lower, a day after
its finance minister said the government may sell low-yielding
bonds to the central bank via private placement to help finance
a ballooning fiscal deficit.
The currency weakened on Monday, as investors worried about
the inflationary risks of Bank Indonesia buying low yield bonds.
“Investors are likely to scrutinize the central bank’s
growing part in the borrowing program, especially as part of
the issuance is now being conducted at cheaper than prevailing
market levels,” analysts at DBS Group Research wrote.
“Clear strategy on usage of funds and exit plans are
necessary to placate investors.”
** Top gainers on Thailand’s SETI included AQ Estate
PCL up 50% and Capital Engineering Network PCL
** Top gainers on FTSE Bursa Malaysia Kl Index
included Top Glove Corp up 4.46% and Hartalega
Holdings up 3.36%
** Indonesian 10-year benchmark yields eased 0.1 basis
points to 7.232% while 3-year yields fell 8.9 basis points
Asia stock indexes and
currencies at 0339 GMT
COUNTRY FX RIC FX FX YTD INDEX STOCK STOCKS
DAILY % S YTD %
Japan -0.14 +0.84 1.76 -5.39
India 0.00 -5.56 0.00 -15.25
Indones -0.21 -2.25 0.45 -21.84
Malaysi +0.12 -4.40 0.67 -5.31
Philipp -0.15 +1.76 0.66 -21.36
Singapo +0.03 -3.50 1.08 -19.27
Taiwan +0.59 +2.23 0.38 -3.42
Thailan +0.00 -3.11 1.09 -14.91
(Reporting by Rashmi Ashok in Bengaluru
Editing by Vidya Ranganathan and Jacqueline Wong)