March 9 (Reuters) - Emerging Asian markets rebounded on Wednesday after a three-day rout as investors bought into regional equities beaten down since Russia's invasion of Ukraine, and after a halt in nickel trading helped modestly stabilise soaring metal prices.
Equity markets in the Philippines and Singapore jumped more than 1% each, while stocks in Indonesia and India also added nearly a percent.
In contrast, Chinese shares extended losses as new coronavirus cases in the world's second-largest economy soured the mood.
Currency prices across the region were largely mixed as investors assessed the impact of a recent spike in commodity prices in the wake of the Ukraine conflict, which Russia calls a "special operation", on inflation and central bank policy.
While crude prices remained elevated on Wednesday, market participants looked for further cues on how the conflict would pan out after the United States on Tuesday imposed an immediate ban on Russian oil and other energy imports.
Investors placed cautious bets on riskier assets after the London Metal Exchange (LME) halted nickel trading and cancelled trades on Tuesday after prices doubled to more than $100,000 per tonne.
"After LME halted trading, we are seeing metal prices pull back, broadly alleviating pressure on inflation and this is helping Asia Pacific markets as a lot of them are net importers of raw materials and energy products," said Margaret Yang, a Singapore-based strategist with DailyFX.
Yang said the bounce in markets was also because they were sold so heavily over the last three sessions, but warned of potential further losses as the geopolitical situation remains fluid.
Markets were attuned to the lingering risk as yields on high-returning Indonesian benchmark bonds jumped another 62 basis points to a near one-year high, while those on long-tenor bonds in Singapore also climbed a further 31 basis points.
"IndoGB yields went up further on Tuesday as foreign investors might have continued to offload positions. Against a risk-off backdrop where US yields rose overnight, IndoGBs are likely to stay pressured today," strategists at OCBC Bank said in a note.
Thai stocks rose 0.6%, in line with other regional peers, and the baht swung between positive and negative territory. Data showed the country's consumer confidence dropped for a second straight month in February.
HIGHLIGHTS:
** Top gainers on the Jakarta stock index .JKSE include Radana Bhaskara Finance Tbk PT HDFA.JK up 25.81% and Batavia Prosperindo Finance Tbk PT BPFI.JK up 18.98%.
** In the Philippines, top index gainers are Jollibee Foods Corp JFC.PS up 4.76%, Aboitiz Power Corp AP.PS up 4.33% and, Manila Electric Co MER.PS up 3.94%.
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Asia stock indexes and currencies at 0658 GMT |
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|
COUNTRY |
FX RIC |
FX DAILY % |
FX YTD % |
INDEX |
STOCKS DAILY % |
STOCKS YTD % |
|
Japan |
-0.10 |
-0.60 |
(.N225) |
-0.3 |
-14.15 |
|
|
China |
-0.01 |
+0.55 |
(.SSEC) |
-1.11 |
-10.51 |
|
|
India |
+0.08 |
-3.27 |
(.NSEI) |
1.08 |
-6.73 |
|
|
Indonesia |
+0.14 |
-0.87 |
(.JKSE) |
0.58 |
4.14 |
|
|
Malaysia |
-0.19 |
-0.57 |
(.KLSE) |
0.32 |
0.93 |
|
|
Philippines |
+0.15 |
-2.36 |
(.PSI) |
1.68 |
-0.39 |
|
|
S.Korea |
-0.80 |
-3.91 |
(.KS11) |
-1.09 |
-11.93 |
|
|
Singapore |
+0.04 |
-1.12 |
(.STI) |
1.26 |
2.07 |
|
|
Taiwan |
-0.32 |
-2.73 |
(.TWII) |
1.13 |
-6.61 |
|
|
Thailand |
+0.03 |
+0.63 |
(.SETI) |
0.58 |
-1.76 |
Reporting by Riya Sharma; Editing by Anil D'Silva
Source: Reuters