* Rupiah, JKSE pare losses after central bank keeps rates
steady
* MSCI EM Asia down from pre-war peaks
* KOSPI closes at record peak
(Updates for afternoon trade)
By Rajasik Mukherjee
April 22 (Reuters) - Emerging Asia equities fell on
Wednesday as investors looked past the U.S.-brokered Iran
ceasefire to risks of crude supply disruptions, while Indonesian
assets were largely unfazed after the central bank kept its rate
steady.
The MSCI gauge of EM Asia equities fell
0.4%, sliding from the February 27 highs the index had touched
earlier this week. A broader gauge of global EM stocks
also inched lower from its late-February peak.
Bank Indonesia stood pat on its rates, as expected, to
anchor the rupiah's stability amid the war in Iran.
"BI is demonstrating a strong focus on currency stability
during this globally uncertain environment, where high-yielding
currencies are struggling in Asia," said Chandresh Jain, BNP
Paribas EM Asia FX and Rates Strategist.
The currency has been under sustained pressure since the
Middle East war broke out in late February, losing over 2% to
become one of the worst-hit units in the region.
The rupiah trimmed some of its losses on the day after the
decision, trading at around 17,175 per U.S. dollar. It had
weakened to 17,185 a dollar earlier in the session, within
striking distance of its all-time low of 17,193.
The central bank also said the rupiah would be stable going
forward, with the possibility of it appreciating, aided by the
central bank's policy.
Stocks in the Southeast Asian nation pared some of
their losses too, shedding 0.2%.
South Korea's high-flying KOSPI index hit a record
high earlier in the day, then edged lower, only to close at a
record peak, driven by gains in battery makers.
Equities in Singapore, Malaysia, the
Philippines, and Indonesia slipped about half a
percentage point each. Thailand's shares shed 0.2%.
U.S. President Donald Trump said he would indefinitely
extend the Iran ceasefirebut announcement provided no clarity on
whether Iran or U.S. ally Israel would agree.
Markets digested the latest developments, weighing the
long-term implications of already lost crude supply and the
ongoing closure of the Strait of Hormuz on emerging,
energy-importing countries in Asia.
"The conflict appears to have moved into a prolonged
standoff rather than towards a swift or durable resolution,"
MUFG analysts wrote in a note.
"For markets, this environment implies continued disruption
to energy flows through the Strait of Hormuz."
Currencies in emerging Asia were also under pressure. The
Philippine peso slipped 0.3% to 60.12 per U.S. dollar,
while the Malaysian ringgit lost 0.3% to 3.9520 a piece.
HIGHLIGHTS:
** Thailand offers backing for Myanmar's bid to normalise
ASEAN ties
** South Korea, Vietnam leaders to meet as Hanoi seeks
high-tech investment
** Indonesia's Q1 FDI up 8.5% to $14.6 billion, minister
says
Asia stock indexes and currencies at 0757 GMT
Japan +0.10 -1.61
0.4 18.37
China India -0.37 -4.24 -0.62 -6.53
Indonesia -0.17 -2.91 -0.22 -12.77
Malaysia -0.08 +2.66 -0.43 1.65
Philippine -0.30 -2.21 -0.48 -1.05
s
S.Korea Singapore +0.13 +1.05 -0.35 7.56
Taiwan -0.16 -0.32 0.73 30.78
Thailand +0.20 -2.10 -0.09 17.67
(Reporting by Rajasik Mukherjee in Bengaluru; Editing by
Mrigank Dhaniwala and Janane Venkatraman)
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