China stocks jump nearly 3% amid China policy shift * S.Korean won rises 0.5%, shares jump over 2% * Investors await U.S. CPI print for cues on rate outlook By John Biju Dec 10 – Emerging Asian equities rose on Tuesday following China’s pledge for additional policy stimulus to boost economic growth and ease monetary policy, while South Korean shares rebounded after a sharp decline in the previous session amid political turmoil.
South Korean shares jumped as much as 2.4% after hitting a 13-month low on Monday, as equities and the won came under pressure due to deepening political tensions following a failed impeachment motion against President Yoon Suk Yeol. The won advanced 0.5% in early trade on Tuesday. “Authorities have been quick to communicate with rating agencies and investment community, in an attempt to calm markets,” said Christopher Wong, a FX strategist at OCBC. “The moves so far in FX markets may look excessive in the short term. While political uncertainty in Korea may temporarily weigh on KRW , but this should fade once we get more clarity.”
Chinese state media outlet Xinhua reported on Monday the top Communist Party officials had shifted the monetary policy stance from “prudent” to “moderately loose”, similar to their approach during previous crises. The move aims to stabilize markets and “vigorously” boost consumption. It sent the Chinese long-dated government bond yields to record lows, while equities jumped as much as 2.7% to hit their highest levels in a month. The yuan edged higher. An MSCI gauge of Asian emerging market equities , in which China holds roughly one-third of weightage, jumped as much as 1.4% to mark its best day in more than seven weeks. Equities in the Philippines and Singapore climbed 0.7% and 0.4%, respectively.
China’s comments came ahead of the annual Central Economic Work Conference, which is expected to set key targets and policy intentions for next year. “Follow-up policy action is crucial, and bear in mind markets are impatient. We caution that any delay in concrete policy action may setup a case for disappointment,” OCBC’s Wong said. Wong sees some support for Asian currencies including the yuan, the South Korean won, the Taiwan dollar, the Singapore dollar and the Malaysian ringgit. The Taiwan dollar nudged higher but shares declined 0.5%. Taiwan’s defence ministry reported a surge in Chinese military activity around the island, including 47 military aircraft, as Taiwan remained on high alert following the return of its president from a U.S. trip. Currencies in the region were mostly flat ahead of crucial U.S. CPI data on Wednesday, which is expected to strengthen expectations of a rate cut by the Federal Reserve at its meeting later this month. HIGHLIGHTS: ** China regulators tell banks to expedite offshore company listings, sources say
Thailand posts 20% drop in low-quality Chinese imports, official says
India names Sanjay Malhotra to replace Shaktikanta Das as central bank governor Asian stocks and currencie s as at 0331 GMT COUNTRY FX RIC FX FX INDEX STOCK STOCK DAILY YTD % S S YTD % DAILY % % Japan -0.03 -6.72 0.09 17.13 China 0.09 -2.09 1.39 15.97 India -0.06 -1.85 0.00 13.29 Indonesia -0.09 -3.02 -0.09 2.18 Malaysia -0.11 3.68 0.03 10.81 Philippin 0.11 -4.39 0.65 4.25 es S.Korea 0.49 -9.80 1.98 -9.33 Singapore 0.02 -1.57 0.42 17.60 Taiwan 0.08 -5.26 -0.51 29.13 Thailand 0.24 1.41 – 2.24
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