* Malaysian PM to resign on Monday - media reports
* Thai Q2 GDP better than expected, +7.5% from a year
earlier
* Philippine shares up 2.7%
By Sameer Manekar
Aug 16 (Reuters) - Malaysia's ringgit fell to a one-year low
and equities declined on Monday, as reports that the Prime
Minister is set to resign turned investors cautious while the
Philippine peso gained even as the country witnessed a surge in
new coronavirus infections.
Malaysian Prime Minister Muhyiddin Yassin was expected to
step down on Monday, according to media reports, after he lost
his majority in parliament, pushing the country into a period of
uncertainty as it grapples with surging COVID-19 cases and an
economic downturn.
Dollar/ringgit traded higher following weekend news
regarding PM Muhyiddin Yassin's resignation, analysts at Maybank
said in a research note, adding that uncertainty on transfer of
leadership weighs on sentiment in the interim.
"Uncertainty on who takes over the leadership will weigh on
sentiment in the interim, but this could turn around if there is
a quick agreement on who will be appointed."
Malaysia's ringgit fell to as much as 4.2415 per
dollar as of 0240 GMT, its lowest since July 2020, while the
Kuala Lumpur share index was down as much as 0.7%, their
worst intraday drop in nearly two weeks.
Analysts at Maybank expect the ringgit to ease off to
between 4.220 and 4.240, with immediate resistance at 4.2440
holding for now.
Elsewhere, the Philippine peso edged firmer and the
bourse soared as much as 2.7% to mark its best intraday
performance since the start of the month.
The Philippines has been reeling under the pressure of
rising new coronavirus cases and consequent movement
restrictions, hitting investor sentiment. So far in the quarter,
shares are down 6% while peso has weakened 3.4%.
In Thailand, the baht slipped and equities were
down a percent to hit their lowest since mid-May even after
second-quarter economic growth was unexpectedly strong. GDP
expanded 7.5% in the June quarter from a year earlier against
6.4% growth forecast in a Reuters poll.
Elsewhere, factory activity and retail sales in China - the
region's biggest trade partner - rose more slowly than expected
in July from a year earlier amid new COVID-19 outbreaks and
signs of growing pressure on the economy.
New COVID-19 infections in July had prompted local Chinese
authorities to lock down and temporarily suspend business
operations, with the authorities last week shutting down a
container terminal in Ningbo after a case was detected.
"These closures, though only partial, could spell outsize
logistics disruption relative to the scale of the infections
being recorded," said Robert Carnell, regional head of research,
Asia-Pacific at ING.
Markets in South Korea were closed for a
public holiday.
HIGHLIGHTS:
** Indonesian 10-year benchmark yields fall 3.2 basis points
to 6.347%
** Singapore dollar softens as much as 0.2%, equities
down 0.3%
Asia stock indexes and
currencies at 0403 GMT
COUNTRY FX RIC FX FX INDE STOCK STOCK
DAILY YTD X S S YTD
% % DAILY %
%
Japan +0.17 -5.6 <.N2 -1.9 0.1
1 25>
China <CNY=CFX -0.01 +0.7 <.SS 0.37 1.61
S> 8 EC>
India +0.00 -1.5 <.NS -0.15 18.05
9 EI>
Indones +0.03 -2.3 <.JK -1.09 1.57
ia 6 SE>
Malaysi -0.08 -5.1 <.KL -0.52 -7.98
a 8 SE>
Philipp +0.10 -4.9 <.PS 2.71 -9.08
ines 3 I>
Singapo -0.14 -2.5 <.ST -0.30 10.98
re 9 I>
Taiwan +0.00 +2.2 <.TW -1.02 14.09
4 II>
Thailan -0.09 -10. <.SE -0.61 4.80
d 22 TI>
(Reporting by Sameer Manekar in Bengaluru; Editing by
Jacqueline Wong)
