*
Equities mixed; Seoul gains on dividend tax hopes
*
Thai stocks rise up to 0.9%
*
U.S. dollar weakens ahead of economic data
By Rishav Chatterjee
Sept 29 (Reuters) - The Indonesian rupiah rebounded on
Monday from a near five-month low as the central bank kept up
its guard to ensure the currency's stability, while most Asian
peers edged higher against a wobbly U.S. dollar.
Equities in emerging Asia rose slightly as investors
assessed the fallout of a possible shutdown of the U.S.
government that would threaten release this week of jobs data,
key for markets to bet on the Federal Reserve's easing path.
Those concerns kept pressure on the U.S. dollar index, which
slipped 0.2% against a basket of major currencies.
"The shutdown can hinder the release of the key
government-produced data, such as the NFP, and result in more
focus on the other indicators," Maybank analysts said in a note.
An MSCI index of EM Asia equities added 1%,
largely driven by South Korea's KOSPI, which rebounded
more than 1% from Friday's two-week low on hopes of
dividend-friendly tax reforms.
Hong Kong-listed shares of Tencent (TCTZF) and Alibaba (BABA)
jumped up to 3% each.
In Southeast Asia, Indonesia's currency rose up to
0.5%, to stand at 16,650 against the dollar, after ending last
week near its weakest since April 30.
That depreciation of about 0.9% prompted the central bank to
intervene in financial markets to stabilise the currency.
Bank Indonesia's surprise rate cut, its "burden sharing"
deal with the government, and the abrupt exit of a respected
finance minister are fuelling investor fears about political
interference.
That has raised doubts about the central bank's independence
and the credibility of economic policy in Southeast Asia's
largest economy.
"The rupiah will continue to be volatile in the short term,
given increased political noise, lower policy visibility, and
headline risk," said Massimiliano Bondurri, founder and CEO of
SGMC Capital.
"This being said, for long-term investors current levels are
attractive to enter the currency and take advantage of recent
depreciation."
Indonesia is due to issue this week inflation data for
September, though the central bank's shifting focus on growth
implies it could have little bearing on the monetary policy
stance.
Analysts broadly expect 50 basis points of rate cuts over
the next two quarters.
Elsewhere, the Malaysian ringgit, Singapore dollar
, and the Philippine peso firmed between 0.2% and
0.1%.
The Thai baht meandered around 32.25 a dollar,
while South Korea's won gained 0.7% and the Chinese
yuan rose 0.2%.
Among equity markets, the benchmark index in Manila
fell 0.2%, while those in Jakarta and Singapore
added between 0.2% and 0.6%.
Stocks in Thailand surged as much as 0.9%, as the
new prime minister outlined measures to fire up a sluggish
economy.
HIGHLIGHTS:
** Yield on Indonesia's 10-year bonds ticks
higher to 6.435%
** US tariffs threaten $3.1 billion of Singapore's pharma
exports, trade talks ongoing
** Thailand to step up China cooperation, lines up economic
stimulus
Asia stock indexes
and currencies at
0435 GMT
COUNTRY FX RIC FX DAILY FX YTD % INDEX STOCKS STOCKS
% DAILY YTD %
%
Japan +0.40 +5.56 -0.68 14.63!
China India -0.01 -3.50 0.34 4.63
Indonesi +0.30 -3.51 0.61 15.09
a
Malaysia +0.21 +6.13 0.00 -2.03
Philippi +0.08 +0.04 -0.20 -7.87
nes
S.Korea Singapor +0.12 +5.88 0.16 12.81
e
Taiwan - +7.32 - 11.05
Thailand +0.00 +6.49 0.38 -8.33
(Reporting by Rishav Chatterjee in Bengaluru; Editing by
Clarence Fernandez)
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