Asian stocks, FX edge higher but Omicron threat persists

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Emerging Asia’s stocks and currencies

began the last week of the year on a positive note on Monday,

but gains were capped as China and Japan faced prospects of

tighter curbs amid rising COVID-19 cases.

Singapore’s dollar firmed 0.2% to lead gains,

followed by the South Korean won and the Taiwanese

dollar, up 0.1% each, as the greenback remained

little changed.

Stocks in Taiwan and Malaysia rose 0.7%,

while most other markets traded between down 0.1% to up 0.1%.

Financial market activity was subdued in the last week of

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the year with some centers closed for public holidays.

Tokyo shares tripped as more cases of the highly

transmissible Omicron variant of coronavirus were discovered https://www.reuters.com/business/healthcare-pharmaceuticals/japans-kyoto-prefecture-finds-four-omicron-cases-kyodo-2021-12-25

in Japan, while China reported https://www.reuters.com/business/healthcare-pharmaceuticals/chinas-local-covid-19-cases-edge-higher-xian-enters-5th-day-lockdown-2021-12-27

its highest daily rise in local COVID-19 cases in 21 months

over the weekend.

“As the spread of the variant strain proliferates further,

the resumption of domestic social restrictions cannot be ruled

out; just as many of these countries have tightened or brought

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back international travel restrictions,” Mizuho analysts wrote

in a note.

China’s northwestern city of Xian, the country’s new COVID

hot spot, entered a fifth day of lockdown but was yet to report

a case of the Omicron variant.

The yuan eased slightly while Shanghai equities

ticked up 0.2% after a heavy sell-off in the previous

session, with property firms making marginal gains on the

potential https://www.reuters.com/markets/currencies/china-cbank-says-promote-healthy-development-property-market-2021-12-25

for looser curbs in the beleaguered sector.

Malaysia’s benchmark stock index hit a five-week high,

supported by an 8% jump in world’s biggest latex glove maker Top

Glove Corp, which usually benefits from COVID-19

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headlines.

South Korean shares fell as investors booked profit

on semiconductor stocks after last week’s rally.

Meanwhile, the Thai baht, set to be Asia’s worst

performing currency this year, fell 0.3% to 33.50 per dollar.

The baht has been badly hurt by dim prospects for tourism, a key

driver of Thailand’s economic growth that has been hit by the

pandemic.

The country last week reinstated https://www.reuters.com/world/asia-pacific/thailand-reinstates-mandatory-covid-19-quarantine-scraps-waiver-program-2021-12-21

mandatory quarantine for foreign arrivals and later https://www.reuters.com/world/asia-pacific/thailand-reports-first-omicron-cluster-cancels-some-new-year-events-2021-12-24

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scrapped some New Year events on finding its first Omicron

cluster.

HIGHLIGHTS

** Indonesian 3-year benchmark yields are down 8.5 basis

points at 4.422%

** Philippine 3-year benchmark yield is up 10.7 basis points

at 3.187%​​

** Top gainers on the Singapore STI include Dairy

Farm International Holdings Ltd, up 2.6%, and

Yangzijiang Shipbuilding Holdings Ltd, up 1.54%

Asia stock indexes and currencies

at 0336 GMT

COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD %

Japan +0.02 -9.75 -0.25 4.62

China -0.04 +2.49 0.11 4.29

India +0.00 -2.61 0.00 21.61

Indonesia -0.04 -1.30 0.02 9.79

Malaysia +0.13 -4.00 0.71 -6.14

Philippines -0.14 -4.15 -0.13 0.46

S.Korea +0.09 -8.38 -0.15 4.68

Singapore +0.21 -2.62 0.04 9.35

Taiwan +0.09 +2.78 0.70 22.77

Thailand -0.30 -10.59 0.11 13.09

(Reporting by Anushka Trivedi in Bengaluru; Editing by Sam

Holmes)