EMERGING MARKETS-Indonesia, India lead Asia stocks higher as economic worries cap gains

28-Sep-2020 Intellasia | Reuters | 6:02 AM Print This Post

India and Indonesia shares led gains in

Asia on Friday as signs of progress on US fiscal stimulus

eased the pressure on stock markets globally, although concerns

about a second wave of coronavirus infections capped gains

again.

Asian stocks tracked Wall Street’s strong finish overnight

after a US lawmaker said Democrats in the House of

Representatives were working on a $2.2 trillion stimulus package

to support the pandemic-ravaged economy.

India and Indonesia stocks gained about 2%

each. Jakarta’s main index, weighed down by a new wave

of virus cases and concerns over moves to change its central

bank law, had shed more than 4 percent this week.

A resurgence in COVID-19 infections across Europe, along

with weak economic indicators, led world stocks to mark some of

their worst weekly declines in months.

“From an investment perspective, the economic outlook as we

enter the final stretch of 2020 is as uncertain as ever,” BCA

Research analysts said in a client note.

“The potential for renewed lockdowns, a fiscal cliff in the

United States, political uncertainty due to Brexit, and the

possibility of a contested US election all make for a very

complex decision tree.”

Other Asian equity markets posted modest gains on Friday,

with Singapore, Malaysia and South Korea

adding 0.3 percent to 0.8%.

South Korea’s KOSPI was down 5.5 percent for the week, its worst

performance since March.

In China, a strong influence over many of the region’s

markets, the yuan rose 0.2 percent after news that the

country’s government bonds would be included in FTSE Russell’s

flagship World government Bond Index (WGBI).

In the same announcement by FTSE Russell, Malaysian bonds

remained on a waiting list for possible removal, holding back

the Malaysian ringgit, which has also suffered from

fresh political turbulence in Kuala Lumpur this week.

Malaysian 10-year bond yields rose around 1

basis point, touching their highest since mid-July.

HIGHLIGHTS

** Malaysia’s 10-year benchmark yield is up 0.70 basis

points at 2.765%

** Top gainers on the Jakarta stock index include

Alfa Energi Investama Tbk PT up 35 percent and Borneo Olah

Sarana Sukses Tbk PT up 33.7%

** Top gainers on the Singapore STI include Mapletree

Logistics Trust up 1.49 percent and Comfortdelgro Corporation

Ltd up 1.41%

Asia stock indexes and currencies

at 0733 GMT

COUNTRY FX RIC FX DAILY percent FX YTD percent INDEX STOCKS STOCKS

DAILY percent YTD %

Japan +0.09 +3.13 0.51 1.91

China +0.20 +2.19 0.12 5.55

India +0.37 3.05 1.77 9.63

Indonesia 0.03 6.53 1.90 21.67

Malaysia +0.02 1.82 0.48 5.09

Philippines +0.12 +4.58 0.12 25.29

S.Korea +0.03 1.36 0.27 3.69

Singapore +0.15 2.09 0.83 23.32

Taiwan +0.35 +3.05 0.26 1.97

Thailand +0.29 5.05 0.07 21.10

https://www.reuters.com/article/emerging-markets-asia/emerging-markets-indonesia-india-lead-asia-stocks-higher-as-economic-worries-cap-gains-idUSL3N2GM1T6

 


Category: Indonesia

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