Emerging markets Asia: Philippine shares lag on virus woes, Thai economy shrinks

August 17, 2020, 12.31 PM | Source: Reuters
Emerging markets Asia: Philippine shares lag on virus woes, Thai economy shrinks

ILUSTRASI. Philippine shares trailed gains in Asia's emerging stock and currency markets.


ASIA - JAKARTA. Philippine shares trailed gains in Asia's emerging stock and currency markets on Monday as investors awaited a decision on the extension of strict quarantine measures reinstated to stem the country's rise in new coronavirus infections. 

Currencies and equity markets across the region rose in morning trade, tracking gains in China after its central bank rolled over maturing medium-term loans to the financial system, injecting 700 billion yuan ($100 billion) into the market. 

With the postponement of a scheduled review of the U.S.-China Phase-One trade deal also taking one big risk off the table for now, Taiwan shares outperformed some of their peers while promises of more government infrastructure spending helped Indian shares gain half a percent. 

But Manila's benchmark stock index fell 1%, dragged by losses in the financial and consumer sectors, with investors concerned that the outbreak will continue to hurt the economy even if Philippine President Rodrigo Duterte eases restrictions. The Philippines has been reporting record daily coronavirus infections since July despite the restrictions, with total cases across the archipelago soaring past 161,000 and the death tally at 2,665 as of Sunday. 

"Despite a recent surge in COVID-19 infections, comments from authorities suggest that lockdown measures will be relaxed in the coming week in a bid to jump start economic activity," said Nicholas Mapa, ING's senior economist for the Philippines. 

"With cases accelerating, it may be difficult to expect economic activity to return to business as usual." The peso, which has proven more robust than Manila's stock market in the face of the pandemic, inched higher against a broadly weaker U.S. dollar. 

Read Also: Thai Q2 GDP shrinks 12.2%, weakest in 22 years

In Thailand, the baht dipped and the benchmark stock index fell up to half a percent, as a double whammy of political protests and data showing the economy shrank by 12.2% in the second quarter added to the government's headaches. 

More than 10,000 Thai protesters chanting "down with dictatorship" and "the country belongs to the people" rallied in Bangkok on Sunday in by far the biggest anti-government demonstration since a 2014 coup. 

Taiwan shares were among the top performers, with gains of over 1%. Singapore shares rose as much as 0.6%, following better-than-expected non-oil domestic exports in July, before paring some gains to edge down 0.1%. The city-state will also unveil plans to extend more financial support to companies and workers during the COVID-19 pandemic on Monday, its finance ministry said. 

Financial markets in South Korea and Indonesia were closed for holidays. 

Read Also: Oil prices advance as China ramps up U.S. crude imports

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