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The South Korean won on Thursday touched
a two-week high to spur gains in regional currencies after data
showed the Asian trade bellwether’s industrial output data came
in better than expected, pointing to some easing in global
supply bottlenecks.
Sentiment got a boost from South Korea reporting a 5.1%
seasonally adjusted increase in industrial production last month
from October, beating a Reuters forecast of 2.5% as
semiconductor shortages seemed to be improving.
The won, the Thai baht and Malaysia’s
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ringgit, all rose about 0.3% each, as currencies of
trade dependant Asia cheered the developments and the greenback
weakened slightly.
“Korea’s semiconductor output continued to post solid growth
… We think it could benefit if the lockdown in Xian, China,
lasts longer,” Barclays analysts wrote in a note.
Data suggests some easing of the automotive chip shortage, a
phenomenon that was also reported in Japan, the analysts added,
which “supports our view that supply-side bottlenecks may see
more meaningful resolution in 2022.”
However, on Thursday, Samsung Electronics and
Micron Technology, two of the world’s largest memory chip
makers, warned that a COVID-19 lockdown in Xian could affect
their chip manufacturing bases in the area.
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South Korean equities fell 0.4% amid thin volumes on
the last trading day of the year, with Samsung shares dragging
the benchmark. KOSPI is set to close 2021 with gains of around
4%.
Chinese shares rebounded from a near 1% drop in the
previous session, fueled by gains in the tech sector even as
the pandemic situation in the country worsened.
Bangkok shares edged higher, while stocks in
Malaysia, Jakarta and Singapore shed
between 0.1% and 0.3%, as low volumes amid end-of-year trading
added some volatility to markets.
It was also the last trading day for currency and stock
markets in Thailand and Indonesia, while Singapore will see a
shortened session on Friday.
The baht is set to end the year as the
worst-performing Asian currency with a 10.3% drop due to a
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delayed recovery in tourism, a key source of revenue for the
Thai economy. It would be the currency’s second consecutive year
of losses.
Philippines equity markets were closed for a holiday
and will resume trade on Friday.
HIGHLIGHTS
** Indonesian rupiah among best performing currencies
in 2021, eyes closing down 1.6% versus dollar; stocks up almost
10%
** Thai stocks set for gains of ~14%, rebounding from an 8%
drop last year
** Shares of China Evergrande Group tumble after
the embattled real estate developer did not pay offshore coupons
due earlier this week
Asia stock indexes and currencies at 0358 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD %
Japan -0.08 -10.25 -0.34 4.97
China -0.02 +2.50 0.82 4.42
India +0.00 -2.23 -0.07 23.03
Indonesia -0.09 -1.56 -0.03 10.37
Malaysia +0.28 -3.56 -0.20 -5.24
Philippines +0.00 -5.92 — 2.73
S.Korea +0.17 -8.30 -0.42 3.73
Singapore +0.03 -2.28 -0.29 10.03
Taiwan +0.07 +2.94 -0.12 23.71
Thailand +0.36 -10.22 0.22 14.33
(Reporting by Anushka Trivedi in Bengaluru)
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