Investors await the open of U.S. markets after a long weekend
Philippines up 1% as daily COVID-19 cases drop to 8-week low
Graphic: World FX rates http://tmsnrt.rs/2egbfVh
Sept 8 (Reuters) – Indonesia’s rupiah IDR= led a dip in emerging Asian currencies against a broadly stronger dollar on Tuesday, while equity markets managed minor gains in light trade ahead of the reopening of U.S. markets from a long weekend.
The rupiah fell 0.4% against the dollar =USD, which held onto overnight gains with some investors looking to the European Central Bank meeting later this week for clues on what could be in store for the greenback.
“A bit of consolidation is what you’re seeing right now,” said Moh Siong Sim, an FX strategist at the Bank of Singapore.
The recent weakness in the dollar has been a boon for the euro EUR=EBS and for Asian currencies, especially China’s yuan CNY=CFXS, which is set to gain for a fourth straight month.
“The weak dollar trend is driven by two important currencies …the Chinese currency is still in favour of further appreciation,” Siong Sim said.
“I think where things are bit more mixed now is on the euro front.”
The yuan was 0.1% weaker.
U.S. stock futures EScv1 edged higher on Tuesday, pointing to a positive open later following a sharp tech-led sell-off last week that revived worries about high valuations and also drove sharp declines across emerging markets in Asia. .N
Philippine stocks .PSI led gains across the region by rising 1%, while Thai stocks .SETI fell close to 1% following a four-day weekend. In Kuala Lumpur .KLSE, glove makers dragged the market lower.
The Philippines reported its lowest number of new daily coronavirus cases in nearly eight weeks, but that encouraging sign was tempered by officials who said the crisis is not over.
** Top losers in Malaysia are Top Glove Corp TPGC.KL and Haralega Holdings HTHB.KL, who were down 5.2% and 3.7%, respectively
** The European Central Bank’s policy decision is on Thursday
** Japan’s economy sinks deeper into worst postwar contraction, intensifies challenge for new leader
Asia stock indexes and currencies at 0404 GMT
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(Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Kim Coghill)
((NikhilKurian.Nainan@thomsonreuters.com; Twitter: @NikhilKurianN; +91 806 182 2724;))
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