Latest news with #KhoonGoh
Business Times
5 days ago
- Business
- Business Times
Indonesia's risk-on rally drives stocks to all-time high
[JAKARTA] Indonesian stocks on Thursday (Aug 14) rose to a record high in a broad rally across the country's markets, as a strong economy and hopes for interest-rate cuts fuelled a sense of optimism. The Jakarta Composite Index rose 0.5 per cent, taking its advances from an April low to more than 32 per cent. The rupiah jumped 0.5 per cent against the US dollar, beating most Asian currencies. Five-year government bond yields fell to their lowest level in more than three years. The moves mark a reversal from earlier this year, when worries over slowing growth, fiscal discipline and rumours about the resignation of a prominent minister rattled investors. Now, surprisingly strong economic data and expectations of monetary easing have put markets in a potential Goldilocks zone, causing a U-turn in sentiment. The surge in Indonesian shares is part of a broader rally across global markets this week. The S&P 500 closed at a record high on Wednesday, pushed higher by a better-than-expected earnings season. Treasuries have rallied. China's Shanghai Stock Exchange Composite Index is close to its highest level in a decade. Foreign investors have helped Indonesia's market turn a corner. Global funds have bought a net US$283 million of local stocks so far this month, following heavy outflows earlier this year, according to data compiled by Bloomberg. Investors now await President Prabowo Subianto's State of the Nation address on Friday for cues on balancing populist spending with budget discipline. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up 'The market's focus will be on the budget deficit forecast and whether there will be further measures to improve the fiscal position while at the same time supporting economic growth,' said Khoon Goh, head of Asia research at ANZ Banking Group. Sentiment has improved as growth in the second quarter unexpectedly accelerated due to infrastructure development and machinery spending. Some economists said the trend could continue into the third quarter thanks to government stimulus and supportive monetary policy. While there are concerns over the impact of high US tariffs on the nation's goods, further policy easing by the central bank could boost the economy. Bank Indonesia lowered its benchmark interest rate last month – the fourth cut of an easing cycle that began last September. 'There are expectations that the second half of the year will be better than the first half, with liquidity improving' in the markets, said Jerry Goh, investment director of Asian equities at Aberdeen. Growing expectations that the Federal Reserve will start cutting its interest rates in September have weighed on the US dollar, which has fallen more than 8 per cent this year. That has brought billions into developing nations, including the South-east Asian region where stock benchmarks in Vietnam, Singapore and Indonesia have hit record highs. Sentiment among local investors has also got a lift from the inclusion of several Indonesian companies in MSCI indexes. Declining government bond yields are helping to drive more domestic investors towards equities and other higher-yielding assets, with shares related to billionaire Prajogo Pangestu, such as Barito Renewables Energy, growing in popularity. South-east Asia's equity markets have 'been trading at a substantial discount to their historical ranges, so even a modest positive shift can open the door for tactical investments into the region's risk, and Indonesia is not an exception to that story,' said Homin Lee, a senior macro strategist at Lombard Odier in Singapore. BLOOMBERG
Yahoo
01-08-2025
- Business
- Yahoo
PBOC Moves to Stabilize Yuan With Fixing After Dollar Rally
(Bloomberg) -- China's central bank stepped in to stabilize the yuan with its daily reference rate, after the currency dropped to a two-month low in response to the dollar's surge. The World's Data Center Capital Has Residents Surrounded An Abandoned Art-Deco Landmark in Buffalo Awaits Revival Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus We Should All Be Biking Along the Beach The People's Bank of China set the yuan's reference rate around 7.15 per dollar on Thursday, diverging from analyst estimates by the most since late April. The move signals a show of support for the currency which fell after the dollar rallied to its strongest level in two months. The central bank is renewing its support for the currency as the dollar's rise gains momentum following trade deals favoring the US and as the Federal Reserve signals patience on rate cuts. The PBOC had largely refrained from boosting the yuan in May and June as the currency was on a rising trajectory. The fixing 'will help to limit yuan weakness today,' said Khoon Goh, head of Asia research at Australia & New Zealand Banking Group. 'Authorities do not want too much volatility in the currency' and are opting to cap the fix around 7.15 despite the strong dollar rally. The offshore yuan gained 0.2% to 7.1993 per dollar on Thursday, after falling as low as 7.2146 Wednesday, the weakest since early June. The yuan, along with the Singapore dollar, remained resilient on Thursday, while other regional peers fell under the weight of the greenback's overnight gains. Monetary authorities in Indonesia and Hong Kong also stepped into the market to defend their respective currencies on Thursday. For the PBOC, defending the yuan against sharp depreciation remains paramount as it negotiates a trade deal with the US. China's central bank official said earlier this month that the nation didn't seek any competitive edge from yuan depreciation. The recent revival of the greenback, which has already triggered hedge funds to unwind short dollar bets, is set to test the confidence of yuan bulls. A few Wall Street names including Morgan Stanley, UBS Global Wealth Management and Deutsche Bank AG had forecast the yuan would climb 7.1 or lower in their research notes this month. Angst over US tariffs has added to the dollar's strength and dragged down currencies including the euro and Indian rupee. That's before Bloomberg's dollar gauge jumped on Wednesday as Fed Chair Jerome Powell said that there is no decision on a September move and traders dialed back bets on rate cuts this year. Markets were caught wrong-footed on the dollar when Powell sounded more hawkish than expected, said Fiona Lim, a senior strategist at Malayan Banking Bhd. 'The PBOC is using the fix to stabilize the yuan, keeping to its stance of ensuring currency stability, whilst still allowing the broader market forces to determine its direction' --With assistance from Ran Li. (Updates with details on other central bank interventions in 6th paragraph.) Russia Builds a New Web Around Kremlin's Handpicked Super App Burning Man Is Burning Through Cash Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
31-07-2025
- Business
- Mint
PBOC Moves to Stabilize Yuan With Fixing After Dollar Rally
(Bloomberg) -- China's central bank stepped in to stabilize the yuan with its daily reference rate, after the currency dropped to a two-month low in response to the dollar's surge. The People's Bank of China set the yuan's reference rate around 7.15 per dollar on Thursday, diverging from analyst estimates by the most since late April. The move signals a show of support for the currency which fell after the dollar rallied to its strongest level in two months. The central bank is renewing its support for the currency as the dollar's rise gains momentum following trade deals favoring the US and as the Federal Reserve signals patience on rate cuts. The PBOC had largely refrained from boosting the yuan in May and June as the currency was on a rising trajectory. The fixing 'will help to limit yuan weakness today,' said Khoon Goh, head of Asia research at Australia & New Zealand Banking Group. 'Authorities do not want too much volatility in the currency' and are opting to cap the fix around 7.15 despite the strong dollar rally. The offshore yuan gained 0.2% to 7.1991 per dollar on Thursday, after falling as low as 7.2146 Wednesday, the weakest since early June. The yuan, along with the Singapore dollar, remained resilient on Thursday, while other regional peers fell under the weight of the greenback's overnight gains. The recent revival of the greenback, which has already triggered hedge funds to unwind short dollar bets, is set to test the confidence of yuan bulls. A few Wall Street names including Morgan Stanley, UBS Global Wealth Management and Deutsche Bank AG had forecast the yuan would climb 7.1 or lower in their research notes this month. Angst over US tariffs has added to the dollar's strength and dragged down currencies including the euro and Indian rupee. That's before Bloomberg's dollar gauge jumped on Wednesday as Fed Chair Jerome Powell said that there is no decision on a September move and traders dialed back bets on rate cuts this year. Markets were caught wrong-footed on the dollar when Powell sounded more hawkish than expected, said Fiona Lim, a senior strategist at Malayan Banking Bhd. 'The PBOC is using the fix to stabilize the yuan, keeping to its stance of ensuring currency stability, whilst still allowing the broader market forces to determine its direction' --With assistance from Ran Li. (Updates with additional context on dollar strength in 7th paragraph.) More stories like this are available on
Reuters
18-07-2025
- Business
- Reuters
Asian bonds see first monthly foreign outflow in five months
July 16 (Reuters) - Foreign investors pulled funds from Asian bonds in June for the first time in five months, as concerns over a U.S. tariff deadline and heightened tensions in the Middle East weighed on sentiment. They divested a net $2.11 billion worth of local bonds during the month, registering the first monthly net sales since January, data from regulatory authorities and bond market associations in India, Indonesia, Thailand, Malaysia and South Korea showed. Foreigners have, however, still pumped a net $31.97 billion into Asian bonds, so far this year, the biggest figure for the first six months since 2021. U.S. President Donald Trump last week, postponed his tariff deadline to August 1, but announced 25% tariffs for key regional trade partners Japan and South Korea. Last month, Indonesian bonds witnessed approximately $1.9 billion worth of foreign outflows, the largest amount since November 2024. President Donald Trump said on Tuesday, the U.S. would impose a 19% tariff on goods from Indonesia under a new agreement with the Southeast Asian country. Foreigners also shed $1.29 billion of Malaysian bonds, $883 million of Thai bonds and $717 million of Indian bonds last month. "Foreign investors sold debt assets from Indonesia, Malaysia and Thailand as elevated geopolitical tensions led investors to shift to safer assets in June," said Khoon Goh, head of Asia research at ANZ. Bucking the trend, South Korean bonds attracted a net $2.68 billion worth of foreign inflows, with net cross-border purchases extending into a fifth successive month. "We continue to believe that Asia's local government bonds are well positioned for a decent performance, supported by accommodative central banks amid an environment of benign inflation and moderating growth," said Nikko Asset Management in a report last week.
Yahoo
16-07-2025
- Business
- Yahoo
Asian bonds see first monthly foreign outflow in five months
(Reuters) -Foreign investors pulled funds from Asian bonds in June for the first time in five months, as concerns over a U.S. tariff deadline and heightened tensions in the Middle East weighed on sentiment. They divested a net $2.11 billion worth of local bonds during the month, registering the first monthly net sales since January, data from regulatory authorities and bond market associations in India, Indonesia, Thailand, Malaysia and South Korea showed. Foreigners have, however, still pumped a net $31.97 billion into Asian bonds, so far this year, the biggest figure for the first six months since 2021. U.S. President Donald Trump last week, postponed his tariff deadline to August 1, but announced 25% tariffs for key regional trade partners Japan and South Korea. Last month, Indonesian bonds witnessed approximately $1.9 billion worth of foreign outflows, the largest amount since November 2024. President Donald Trump said on Tuesday, the U.S. would impose a 19% tariff on goods from Indonesia under a new agreement with the Southeast Asian country. Foreigners also shed $1.29 billion of Malaysian bonds, $883 million of Thai bonds and $717 million of Indian bonds last month. "Foreign investors sold debt assets from Indonesia, Malaysia and Thailand as elevated geopolitical tensions led investors to shift to safer assets in June," said Khoon Goh, head of Asia research at ANZ. Bucking the trend, South Korean bonds attracted a net $2.68 billion worth of foreign inflows, with net cross-border purchases extending into a fifth successive month. "We continue to believe that Asia's local government bonds are well positioned for a decent performance, supported by accommodative central banks amid an environment of benign inflation and moderating growth," said Nikko Asset Management in a report last week. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
