* Taiwan stocks up 3.8%, S.Korea adds 2.4% * Currencies pressured as dollar rebounds, ringgit down 0.7% * Thailand inflation picks up in July By Himanshi Akhand Aug 7 (Reuters) - Emerging Asian stock markets advanced on Wednesday, with tech-heavy Taiwan and South Korea bourses leading gains as investors reassessed fears of a sharp U.S. economic slowdown, while currencies were pressured as the greenback regained strength. MSCI's broadest index of Asia-Pacific shares outside Japan jumped 1.8%, continuing to claw back ground after Monday's global selloff. Shares in Taiwan surged 3.8%, while those in South Korea gained 2.4%. Benchmark index in Indonesia, Malaysia, Singapore and India added between 0.9% and 1.3%. There are signs that the recent volatile unwinding of yen carry trades may be pausing, said Ken Cheung Kin Tai, chief Asian FX strategist, Mizuho Bank. "In the EM share market, investors are putting their attention back to the fundamentals and catching opportunities to rebuild their positions. "Sentiment has been stabilizing, but markets will still remain cautious about the global growth outlook," he added. The unraveling of the yen carry trade, coupled with a softer-than-expected U.S. job report last week, lukewarm tech earnings and fears of a U.S. recession had sparked a global sell-off earlier this week with investors dumping riskier assets and moving to safe havens. Regional currencies were on the back foot as the dollar firmed to move further away from the seven-month low it touched on Monday. The Malaysian ringgit, the only Asian currency to log a year-to-date gain so far, fell 0.7%. Thailand's baht fell 0.5%. Data showed the annual headline inflation rate quickened in July, but the pace remained below the central bank's target range of 1% to 3%. The Chinese yuan slipped 0.4%. The country's trade data showed robust growth in imports, but weaker-than-expected export growth. The Philippine peso was largely steady a day after the central bank governor said an interest rate cut at their meeting next week was "little less likely" after data showed annual inflation accelerated at a faster-than-expected pace last month. Bucking the trend, Indonesia's rupiah rose 0.4%. "Easing inflation and tamed down UST yields have created expectation of lower Bank Indonesia Rupiah Securities (SRBI) issuance, which have boosted inflows in the local currency and bond market," Fakhrul Fulvian, an economist at Trimegah Securities, said. HIGHLIGHTS: ** Philippines upwardly revises Q1 GDP to 5.8% y/y ** BOJ won't raise rates when markets unstable, deputy governor says ** South Korea June current account posts biggest surplus in almost 7 years ** South Korea to loosen rules to boost foreign participation in FX market Asia stock indexes and currencies as at 0502 GMT COUNTRY FX RIC FX FX INDE STOCKS STOCKS DAILY % YTD % X DAILY YTD % % Japan -2.23 -4.42 <.N2 3.13 6.86 25> ChinaEC> India +0.04 -0.84 <.NS 0.92 11.42 EI> Indonesi +0.37 -4.38 <.JK 1.24 -0.75 a SE> Malaysia -0.67 +2.00 <.KL 1.23 9.56 SE> Philippi +0.09 -4.09 <.PS 0.38 0.12 nes I> S.Korea 11> Singapor -0.24 -0.69 <.ST 1.26 -0.05 e I> Taiwan -0.07 -6.04 <.TW 3.76 18.64 II> Thailand -0.47 -4.21 <.SE 1.41 -8.75 TI> (Reporting by Himanshi Akhand in Bengaluru; Editing by Kim Coghill)
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Stocks mentioned in the article
Price
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Change
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5d. change
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Capi.
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168.27 USD | +1.77% | +0.15% | - | ||
0.0119 USD | -0.00% | 0.00% | - | ||
7.1053 CNH | -0.16% | +0.22% | - | ||
1.1082 USD | +0.03% | -0.01% | - | ||
- MYR | - | 0.00% | - | ||
- CNY | - | 0.00% | - | ||
- PHP | - | 0.00% | - | ||
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