Asian currencies and most regional
share markets weakened on Thursday as US President Joe Biden
sought to persuade European leaders to impose more sanctions on
Russia, while the Federal Reserve’s hawkishness kept global
markets are under pressure.
“Uncertainty, rather than unadulterated fears of demand
shocks, is arguably the main driving force for the current
market dynamics of declining equities, boosted bonds –
corresponding to falling yields – and buoyant commodities,”
analysts at Mizuho Bank said in a note.
MSCI’s broadest index of Asia-Pacific shares outside Japan
dropped 0.6%, while Japan’s Nikkei
retreated from a more than two-month high as a rise in crude oil
prices stoked inflation concerns.
In Asia, South Korean won weakened 0.6%, a day
after the country nominated International Monetary Fund official
Rhee Chang-yong as its new central bank chief. Rhee is expected
to maintain the Bank of Korea’s efforts to curb inflation, while
taking a less hawkish stance than his predecessor.
Elsewhere, Thai baht, Philippine peso,
Singapore dollar and Malaysian ringgit eased
marginally as the US dollar gained ground against major
Overnight, US Treasuries witnessed a sharp sell-off, with
the 10-year benchmark yields retreating from an
almost three-year peak, as investors assessed the US Federal
Reserve’s hawkish stance.
Asian bond markets also suffered a continued sell-off.
Singapore’s 5-year yields edged higher to touch
2.133% for the first time since December 2018.
The 10-year yields in Philippines, Malaysia
and Thailand edged higher, while
Indonesia’s 10-year benchmark yield slipped
Among Asia’s equity markets, Singapore shares jumped
0.8% to their highest in four weeks, led by travel-related
stocks after the city-state further relaxed COVID-19 curbs for
fully vaccinated visitors.
The city-state’s flagship carrier Singapore Airlines
jumped 2.9%, transport services provider ComfortDelGro
Corp advanced 4.2%, while resorts and casino developer
Genting Singapore added 3.8%.
Elsewhere, shares in Indonesia and the Philippines
gained about 0.5% each, while South Korea’s KOSPI
and Malaysian benchmark declined 0.5% and 0.2%,
Meanwhile, the Philippine central bank, in a decision due
later in the day, is widely expected to keep its policy rate
Analysts at TD Securities expect the Bangko Sentral ng
Pilipinas to hike rates in the second half of this year, while a
Reuters poll predicted the overnight repurchase facility would
move up 50 basis points in the last quarter.
** Indonesian 5-year benchmark yields edges lower to 5.615%
** Thai FinMin sees high oil prices, inflation as temporary
** Singapore’s Olam expects delay in IPO of its food
at 0345 GMT
COUNTRY FX FX FX INDEX STOCKS STOCKS
RIC YTD YTD %
DAILY % DAILY
Japan -0.04 -5.05 <.n22>
Indonesia -0.10 -0.77 <.jks e>
Malaysia -0.07 -1.44 <.kls e>
Philippines -0.06 -2.65 <.psi>
Singapore -0.01 -0.63 <.sti>
(Reporting by Sameer Manekar in Bengaluru; Editing by Simon