* Graphic: World FX rates tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks tmsnrt.rs/3f2vwbA * S. Korea, Taiwan shares down more than 3% * Philippine cenbank expected to stand pat on rates * Indian shares set to snap three-day winning streak By Shriya Ramakrishnan Aug 20 (Reuters) - The Thai baht weakened on Thursday as the arrest of anti-government activists added to a growing list of political concerns while shares in South Korea and Taiwan sank as the U.S. Federal Reserve signalled it was worried about the pace of economic recovery. Stock markets in Seoul and Taiwan, both export-reliant and highly sensitive to global growth, ended more than 3% lower as the comments from Fed policymakers, and their failure to push ahead with steps to control bond market yields, sent a wave of jitters through financial markets. The won was the worst hit among Asian currencies, down 0.5% against the greenback, while the Taiwanese dollar registered a fourth straight session of gains, up 0.4%. In Thailand, the baht slipped as much as 0.7% during the day before regaining some ground, while shares were down around 0.7%. Thai police on Thursday arrested four anti-government activists over a July 18 protest that triggered a wave of student-led demonstrations demanding a new constitution and the resignation of the military-backed government. The Philippine peso swung between positive and negative territory ahead of a central bank rate decision due later in the day, while Manila shares traded 0.6% lower. Bangko Sentral ng Pilipinas (BSP) was widely expected to take a breather after cutting interest rates four times to a record low of 2.25%, a Reuters poll showed. Singapore shares fell more than 1%, pulled down by losses in index heavyweight Wilmar International, after one of its largest shareholders unveiled plans to cut its stake in the agribusiness firm. The Indian rupee weakened 0.2% and the blue-chip NSE Nifty 50 index was on course to end a three-day winning streak as the Fed effect and a record daily jump in coronavirus infections weighed on sentiment. Yields on India's 10-year government bonds, one of the highest in the region after Indonesia, hovered at their highest level since early June at 6%. "Much of the bond underperformance can be pinned on an uncertain fiscal/bond outlook and inflation trend," DBS Bank analysts said, adding that inflation was on course to stay above the central bank's 2% to 6% target range in the third quarter. Financial markets in Malaysia and Indonesia were closed for holidays. HIGHLIGHTS: ** Top losers on the Singapore STI include Wilmar International Ltd down 9.67% at S$4.39; Hongkong Land Holdings Ltd down 3.12% at S$3.73 ** Thailand's 10-year government bond yields are up 1 basis point at 1.33%, while its 3-year benchmark yield is up 1 basis point at 0.6% ** In the Philippines, top index losers are Metropolitan Bank and Trust Co down 3.61% at 34.7 peso; BDO Unibank Inc down 3% at 89.05 peso Asia stock indexes and currencies at 0722 GMT COUNTRY FX RIC FX FX YTD INDEX STOCKS STOCK DAILY % % DAILY S YTD % % Japan +0.14 +2.51 <.N225 -1.00 -3.28 > China <CNY=CFXS +0.04 +0.68 <.SSEC -1.30 10.29 > > India -0.22 -4.81 <.NSEI -0.96 -7.14 > Philippi +0.02 +4.15 -0.61 -23.1 nes 6 S.Korea <KRW=KFTC -0.48 -2.57 <.KS11 -3.66 3.48 > > Singapor +0.01 -1.87 -1.61 -21.8 e 1 Taiwan +0.40 +2.43 <.TWII -3.26 3.05 > Thailand -0.41 -4.62 <.SETI -0.69 -17.7 > 3 (Reporting by Shriya Ramakrishnan in Bengaluru; Editing by Patrick Graham and Subhranshu Sahu)
Source: Read Full Article