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Mercados

EMERGING MARKETS-Rupiah, baht clobbered as policy uncertainty weighs

    * Graphic: World FX rates tmsnrt.rs/2egbfVh
    * Graphic: Foreign flows into Asian stocks tmsnrt.rs/3f2vwbA
    * Rupiah set for worst day in over five months
    * Philippine stocks fall for fifth straight day

    By Shashwat Awasthi
    Sept 2 (Reuters) - Indonesia's rupiah was the biggest mover
among emerging Asian currencies on Wednesday, weakening 1.5%
after officials failed to quell concerns that a proposed new
framework for monetary policy-making could undermine the central
bank's independence.
    Thailand's baht also slipped on the abrupt resignation of
the country's newly appointed finance minister.
    Dogged by worries over Indonesia's economic growth, debt and
a difficult policy mix, the rupiah was set for its worst
day since March 23, prompting Bank Indonesia to intervene to
smooth the exchange rate volatility. The central bank also
affirmed its "accommodative" policy stance.

    An advisory panel to the government on Monday proposed the
biggest shake-up in monetary policy decision-making in two
decades, including a call for ministers to be given voting
rights at Bank Indonesia (BI) policy meetings.
    President Joko Widodo's assurances on Tuesday that BI would
remain independent did little to lower concerns among foreign
investors.
    "Such a move would undermine BI's independence and could
open the door to successive rounds of debt monetization,
something that would rattle investor confidence and exert
additional depreciation pressure on the IDR," Dutch bank ING
said in a note.
    Jakarta stocks fell 0.2% while the rupiah, already
South East Asia's worst performing currency this year, saw its
year-to-date losses swell over 6%.
    In Thailand, the baht gave up 0.5% as the
resignation of finance minister Predee Daochai after less than a
month in the job sparked uncertainty while the government tries
to support the tourism-reliant economy.

    Daochai was appointed by Prime Minister Prayuth Chan-ocha to
manage Southeast Asia's second-largest economy through the
coronavirus crisis after a slew of cabinet resignations in July
had paved the way for a major reshuffle.
    Daochai's decision to step down "could create the impression
that the cabinet may have a stability issue," analysts at
Bangkok-based Phillip Securities said.
    They added that finding a successor might be difficult as
many prospective candidates approached last month had turned
down the role and that this could delay state investments and
stimulus measures.
    Thailand's deputy prime minister on Wednesday said, however,
that the government does not expect any big impact on operations
from the resignation.
    
    HIGHLIGHTS:
    
    ** Indonesian 10-year benchmark yields are up 7.4 basis
points at 6.938%
    ** In the Philippines, top index losers are Ayala Land
 down 3.18%, Universal Robina down 2.46% and
Bank of the Philippine Islands down 2.3%
    ** Top losers on the Singapore STI include Jardine
Matheson down 1.65%, Capitaland Ltd down
1.43% and DBS Group down 0.96%

    
    Asia stock indexes and currencies at 0354 GMT                                   
   COUNTRY      FX RIC    FX DAILY %     FX YTD %     INDEX   STOCKS DAILY %  STOCKS YTD %
    Japan                    -0.08        +2.42                    0.24          -1.96
    China                    -0.07        +1.92                   -0.39          11.38
    India                    0.00         -2.03                    0.07          -5.67
  Indonesia                  -1.52        -6.15                   -0.04          -15.73
  Malaysia                   -0.17        -1.40                    0.50          -3.76
 Philippines                 +0.02        +4.24                   -0.62          -26.26
   S.Korea                   -0.31        -2.55                   -0.21           6.68
  Singapore                  +0.02        -1.22                   -0.44          -21.58
   Taiwan                    +0.59        +2.58                   -0.32           5.55
  Thailand                   -0.58        -4.26                    0.22          -17.18
 
 (Reporting by Shashwat Awasthi in Bengaluru)
  

Nuestros Estándares: Los principios Thomson Reuters.

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