* MSCI EM Asia at highest since March 3
* Rupiah hits record low of 17,140/dollar
* Taiwan stocks hit record high
* MAS tightens monetary policy, flags inflation risk
By Rajasik Mukherjee
April 14 (Reuters) - Most emerging Asian stocks and
currencies firmed on Tuesday as reports of further U.S.-Iran
talks improved risk appetite, while Singapore's central bank
tightened its monetary policy settings and warned of war-driven
inflation risks.
Sources told Reuters that the United States and Iran have
kept the door open to dialogue after the collapse of peace talks
over the weekend, helping boost global risk sentiment and
lifting markets worldwide.
The MSCI EM Asia equities index and a
broader gauge of global EM equities advanced about 2%
each, hitting their highest in six weeks, with a subset of ASEAN
stocks also touching an early-March peak.
South Korea's tech-dominated KOSPI index rose as
much as 3.8%, hitting its highest since March 3, while Taiwan's
stock index hit a record high of 36,322.71.
"The markets really want to give peace a chance,
accentuating the positives and downplaying the negatives as
tensions between the U.S. and Iran simmer away," said Kyle
Rodda, a senior financial market analyst at Capital.com.
"Despite this, the risk for further volatility remains high,
with headline risk continuing to drive the action. In addition
to that, global energy markets remain under strain."
Focus remains on the impact on oil flows and any broader
fallout from the U.S. blockade of Iranian shipping in the Strait
of Hormuz, even as diplomatic efforts remain underway to resolve
the conflict.
In Singapore, the central bank tightened its monetary policy
settings and flagged the risk that an Iran war-fuelled energy
shock could push up core inflation.
Stocks in the city-state rose as much as 0.6%, while
its dollar was largely unfazed by the monetary
tightening.
Stocks in Jakarta surged 2.3% to hit their highest
since March 6, with Chandra Asri - Indonesia's leading
petrochemical firm - rising 3.5%.
However, the rupiah sank to a lifetime low of 17,140
per U.S. dollar, as volatility in oil prices and fiscal and
governance concerns keep it under pressure.
"This is a seasonally week period for rupiah, in midst of
importers' dollar demand, and dividend repatriation, besides
concerns over the feedthrough of higher oil on the fiscal
books," said Radhika Rao, a senior economist at DBS Bank.
Among currencies, the Malaysian ringgit appreciated
0.4% to 3.9540 a dollar, its highest level since March 25.
The Philippine peso and the Taiwan dollar
also inched higher, with the latter touching its highest since
early March.
Thailand's stock market was closed for a holiday,
while the baht traded largely flat. Financial markets
in India were also closed for a holiday.
HIGHLIGHTS:
** South Korea's Lee warns Middle East conflict to keep oil
price high, orders quick aid rollout
** Counting continues in Peru election, runoff with Fujimori
likely
** Middle East war to boost Ukraine inflation, central bank
chief says
Asia stock indexes and currencies at 0309 GMT
COUNTRY FX RIC FX DAILY FX YTD % INDEX STOCKS STOCKS
% DAILY YTD %
%
Japan +0.19 -1.56 2.38 14.92
China India Indonesi -0.20 -2.69 1.71 -11.78
a
Malaysia +0.40 +2.50 0.55 0.57
Philippi +0.15 -1.83 -0.21 -0.19
nes
S.Korea Singapor -0.05 +0.93 0.55 7.86
e
Taiwan Thailand (Reporting by Rajasik Mukherjee in Bengaluru; Editing by
Subhranshu Sahu)
Print
