*
Indonesian rupiah recovers
*
ASEAN equities to snap seven days of losses
*
Philippine shares fall 0.5%
(Updates for afternoon trade)
By Rishav Chatterjee
Sept 29 (Reuters) - The Indonesian rupiah gained ground
on Monday after stumbling to near five-month lows last week as
the central bank stayed vigilant against currency volatility,
while most of its regional peers also crept higher against a
wobbly dollar.
Indonesia's currency rose as much as 0.5% to 16,650
against the dollar, after ending last week near its weakest
since April 30.
Asian equities also gained as investors eyed a U.S. payrolls
report, due later in the week, which could prove crucial to the
Federal Reserve's rate cut trajectory, though a possible
government shutdown threatened to cloud the economic outlook.
The MSCI's EM Asia equities index rose 1.4%
to mark its best intra-day gain in more than two weeks, led by
South Korea's KOSPI, which rebounded over 1% from
Friday's two-week low.
The MSCI gauge was on course to snap a seven-day losing
streak, powered by strength in Singaporean banks.
Thai stocks climbed up to 0.9%, with risk appetite
improving on government's efforts to revive the economy.
Prime Minister Anutin Charnvirakul laid out his policy
agenda in parliament, focusing on measures to tackle living
costs, household debt, and bolster tourism. Last week, he
signaled plans to dissolve parliament by January, paving the way
for an election in March or early April.
Poon Panichpibool, a markets strategist with Krung Thai
Bank, said that plans of dissolving parliament by January may
ease some political uncertainty.
Equities elsewhere traded higher, with Singapore and
Indonesia up 0.2% each. India and China
gained between 0.1% and 0.9% while Jakarta stocks were
trading around 20 points shy of a record close.
Philippine stocks were an outlier, falling 0.5% and
extending losses for a sixth straight session amid a government
corruption probe and a weak peso.
The Singapore dollar and Malaysian ringgit
rose 0.1% and 0.2%, respectively. The dollar eased as investors
awaited a raft of economic data and weighed shutdown risks.
"Asian currencies are likely to be heavily influenced by the
upcoming U.S. nonfarm payroll data. We expect labour market
conditions in the U.S. to remain relatively soft, which could
keep the U.S. dollar under downward pressure," said Lloyd Chan,
a senior currency analyst with MUFG.
"This environment may provide broad support for Asian
currencies, particularly those with trade surpluses and exposure
to the tech up-cycle."
Looking ahead, markets eye Fed Chair Jerome Powell's public
remarks and economic releases, which could shape the path of
rate decisions.
Taiwan markets were closed for a holiday.
Chinese markets will remain closed for a
week starting October 1, which may affect trading volumes in the
region.
HIGHLIGHTS
** Yield on Indonesia's 10-year bonds ID10YT=RR ticks higher
to 6.435%
** Thailand's new PM outlines policies to parliament amid
economic challenges
Asia stock indexes
and currencies at
0802 GMT
COUNTRY FX RIC FX DAILY FX YTD % INDEX STOCKS STOCKS
% DAILY YTD %
%
Japan +0.62 +5.80 -0.69 14.59
China India -0.03 -3.53 0.04 4.31
Indonesi +0.36 -3.45 0.16 14.59
a
Malaysia +0.21 +6.13 0.04 -1.99
Philippi -0.00 -0.04 -0.49 -8.14
nes
S.Korea Singapor +0.13 +5.89 0.18 12.83
e
Taiwan -0.35 +7.32 -1.70 11.05
Thailand -0.09 +6.39 0.34 -8.36
(Reporting by Rishav Chatterjee in Bengaluru; Editing by
Clarence Fernandez and Mrigank Dhaniwala)
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