Philippine shares climb over 3%, most Asian currencies up
- The greenback, however, remains far from levels seen in late March, as investors weigh the Federal Reserve's insistence that policy will remain accommodative for some time.
Philippine stocks jumped more than 3% on Thursday, leading post-holiday gains in Southeast Asia and recovering losses from May, while Asia's emerging currencies edged higher.
The Thai baht, the region's worst-performing currency so far this year, strengthened 0.3% and led more muted gains elsewhere, even as the dollar firmed overnight.
The greenback, however, remains far from levels seen in late March, as investors weigh the Federal Reserve's insistence that policy will remain accommodative for some time.
"Even with the dollar bounce...major pairs are still kept within established ranges," OCBC Treasury Research said in a note.
"Some factors still stacked against the dollar. Fed tapering expectations are still not being priced in. There is significant US data event risk in the coming sessions," referring to the upcoming inflation print on Friday which could revive talk of tapering if the reading is high.
Philippine stocks, the region's worst-hit market, climbed 3.2%, extending gains to a third session as investors make up lost ground this year. The Philippines and the region have been battered by the resurgence of the COVID-19 cases.
On Wednesday, the country said it would authorise Pfizer's COVID-19 vaccine for emergency use in 12-15 year olds.
Most of the region was shut on Wednesday for holidays. Stocks in Indonesia added 1.2%.
Thai stocks gained 1.2%, and reached their highest level since May 11.
Thailand has altered its coronavirus immunisation strategy to target worst-hit areas and sectors where clusters are most likely to emerge as it reported a record death toll on Wednesday.
On the downside, Taiwanese equities fell half a percent, regaining ground as the island looks at more support for business to overcome the pandemic.
Taiwan is considering, according to sources, boosting a loan facility to help small and medium sized firms with almost $20 billion available.
South Korea's central bank left monetary policy unchanged, but upgraded its economic outlook, leading to concerns about an end to its current accommodative stance.
The benchmark stock index fell up to 0.8%, while the won dipped.
HIGHLIGHTS
Indonesian 3-year benchmark yields are down 2.6 basis points at 4.958%
Philippine 3-year benchmark yield is unchanged at 2.5%
Philippines top index gainers are JG Summit Holdings and Aboitiz Power Corp
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