Soft dollar buoys Asian FX; stocks recover after tech rout
Indonesian rupiah snaps 3-day decline
S.Korean won, Japanese yen lead gains
Taiwan, S.Korea stocks snap 4-day slide
Updates at 0614 GMT
By Roushni Nair
July 23 (Reuters) -Emerging Asian stock markets rose onTuesday, with Taiwan shares recouping a third of the losses suffered in the last four sessions, while a softer U.S. dollar helped currencies in the region regain some lost ground.
Taiwan stocks .TWII rose 2.8% after declining more than 6% in the four-day sell-off onconcerns over Washington's likely curbs on semiconductor sales to China.
The benchmark stock index, however, is the best performer in the region, rising more than 26% so far this year.
TSMC 2330.TW, Asia's most valuable listed company, was up more than 4% after losing over 9% in the last four sessions.
South Korean stocks .KS11 also rose for the first time in four days and were last up 0.5%.
Meanwhile, mostregional currencies eked out small gains.
The dollar index =USD was down 0.1% at 104.3, two days after U.S. President Joe Biden dropped his reelection bid. USD/
"There is a possibility that EM Asia could experience some intermittent climb towards year-endonce the U.S. elections are done," said Alan Lau Sie Ping, a senior FX Strategist at Maybank.
South Korea's won KRW=KFTC and the Japanese yen JPY= rose over 0.3%each to lead the charge. The Malaysian ringgit MYR= and Thailand's baht THB=TH strengthened slightly by 0.1%each.
Malaysia will report June inflation data on Wednesday.
The Indonesian rupiah IDR=, which was once a popular carry-trade currency in Asia, has been in a downward spiral as uncertainties around the country's fiscal plans dented investorconfidence.
"We do though eventually expect the IDR to see some relief towards year-endonce the (U.S.)elections are done and the Fed'seasing cycle becomes more entrenched," Sie Ping added.
The Singapore dollar SGD= was last up 0.1%, while shares .STI climbed 0.5%. Core inflation in the country came in at 2.9% for June, the lowest in over two years, with the focus now shifting to thecentral bank's policy meeting on Wednesday.
"In the medium-term, we remain positive on the SGD given robust macro fundamentals and a monetary policy that has an appreciating currency as a default stance," analysts at Maybank wrote in a note.
In India, the rupee INR=IN wobbled near its all-time low, whileinvestors digested the budget announcement by the country's finance minister. INR/
Most other equity markets in Asia traded higher, with Kuala Lumpur .KLSE and Manila .PSI adding0.6% each. Shares in Bangkok .SETI retreated 0.9%as trading resumed after a holiday.
In China, the yuan CNY=CFXS was unchanged, while shares in Shanghai .SSEC dipped over 1% after the central bank's surprise short-term policy rate cut on Monday did little to lift investor sentiment in Southeast Asia's largest trading partner.
HIGHLIGHTS:
** Singapore seen keeping monetary policy unchanged amid inflation risks
** Philippine finance minister says on track for rate cut
Asia stock indexes and currencies at 0614 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | +0.34 | -9.85 | .N225 | -0.01 | 18.94 |
China | CNY=CFXS | -0.01 | -2.43 | .SSEC | -0.78 | -1.14 |
India | INR=IN | +0.03 | -0.51 | .NSEI | -0.05 | 12.73 |
Indonesia | IDR= | +0.10 | -4.96 | .JKSE | -0.02 | 0.66 |
Malaysia | MYR= | +0.13 | -1.76 | .KLSE | 0.52 | 12.09 |
Philippines | PHP= | +0.04 | -5.09 | .PSI | 0.32 | 4.40 |
S.Korea | KRW=KFTC | +0.30 | -6.94 | .KS11 | 0.49 | 4.58 |
Singapore | SGD= | +0.02 | -1.94 | .STI | 0.59 | 6.71 |
Taiwan | TWD=TP | +0.11 | -6.33 | .TWII | 2.76 | 27.56 |
Thailand | THB=TH | +0.03 | -5.80 | .SETI | -0.86 | -7.77 |
Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
Asian stock markets https://tmsnrt.rs/2zpUAr4
Reporting by Roushni Nair in Bengaluru; Editing by Subhranshu Sahu and Eileen Soreng
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