• Thu. Dec 1st, 2022



EMERGING MARKETS-SMIC’s U.S. curbs aid S.Korean, Taiwan stocks after Chinese data boost

    * Jakarta COVID-19 curbs extended 
    * Malaysia's ruling coalition wins state election; reduces
political uncertainty 
    * South Korea, Taiwan chipmakers rise after U.S tightens
to China's SMIC

    By Nikhil Nainan
    Sept 28 (Reuters) - South Korean and Taiwanese stocks
climbed over 1% each on Monday as investors priced in a boost
for their tech-focussed economies from tighter U.S. curbs on
China's biggest chipmaker, adding to a broadly brighter start
across Asian markets. 
    Data showing profits at Chinese industrial firms grew for a
fourth straight month underpinned stock markets in the region,
although the extension of export curbs on Semiconductor
Manufacturing International Corp left
China's own indices flat after a strong start.

    The dual-listed chipmaker's shares plunged more than 5% in
both Shanghai and Hong Kong.

    Stocks in Seoul climbed 1.2% with local chipmakers
gaining the most, also helped by a fall in the number of daily
COVID-19 infections to its lowest in close to two months. Taiwan
stocks saw a similar rise. 
    "The knee-jerk reflex (to the SMIC decision), apart from
caution, may be for Japanese, Korean and Taiwanese chipmakers to
opportunistically benefit from substitution trades," analysts
from Japanese bank Mizuho said in a note.
    China's recovery has been among the few bright spots for the
global economy as a second wave of coronavirus infections mounts
in Europe, prompting countries to reimpose restrictions and
quashing hopes that the continent was turning a corner. 
    "Broadly I would attribute the lift for Asia markets to the
positive data out of China," said Jingyi Pan, senior market
strategist at retail trading platform IG, adding she expected
factory activity (PMI) survey from China on Wednesday to
reinforce the recovery. 
    Indonesian shares, down 0.6%, were again an
exception as COVID-19 curbs were extended in the capital
    Currencies were more of a mixed bag, with most flat to
slightly higher against the dollar, which was little changed.

    Taiwan's dollar, among the region's strongest performers
this year as its tech-focussed economy benefited from the global
move to stay-at-home working, stood out with an almost 0.7%
    Malaysia's ringgit, which lost around 1.4% last week,
ticked higher as a victory by the ruling party in a state
election calmed investor nerves after opposition leader Anwar
Ibrahim said he had a majority to oust the government.

    However, Malaysia's exports unexpectedly fell in August as
demand for manufacturing, agriculture and mining goods dropped,
narrowing the country's trade surplus from a record high in
    ** Indonesian 3-year benchmark yields down 9.2 basis points
to 5.073%
    ** Malaysia's 10-year benchmark yield down 1.79 basis points
to 2.78%
    ** Top losers on Jakarta's index include Star
Pacific Tbk PT, Asuransi Jiwa Syariah Jasa Mitra Abadi
Tbk PT and Asuransi Tugu Pratama Indonesia Tbk PT
            Asia stock indexes and currencies at 0344 GMT
 COUNTRY      FX RIC      FX       FX     INDEX    STOCKS   STOCKS
                          DAILY %  YTD %           DAILY %  YTD %
 Japan                      +0.25  +3.10              0.72     -1.20
 China                      +0.02  +2.09             -0.23      5.31
 India                      +0.00  -3.03              0.00     -9.19
 Indonesia                  +0.03  -6.47             -0.61    -21.97
 Malaysia                   +0.10  -1.82              0.02     -5.00
 Philippines                +0.06  +4.56              0.21    -25.13
 S.Korea                    -0.13  -1.48              1.22      4.96
 Singapore                  +0.12  -2.25              0.49    -22.91
 Taiwan                     +0.65  +3.50              1.51      3.51
 Thailand                   -0.28  -5.65              0.83    -20.54
 (Reporting by Nikhil Kurian Nainan in Bengaluru
Editing by Shri Navaratnam)

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