* Graphic: World FX rates tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks tmsnrt.rs/3f2vwbA
* Singapore, S. Korea shares up more than 1%
* Indonesia Finmin says economic recovery "very fragile"
By Shriya Ramakrishnan
Aug 25 (Reuters) - India's rupee pulled back slightly on
Tuesday after surging as much as 1% a day earlier on reports of
a halt in central bank intervention aimed at keeping a lid on
gains for the currency to support a struggling economy.
In a morning of trade dominated by gains for heavily
export-linked markets on signs of some progress in U.S.-China
trade discussions, the rupee stood out with a small dip
against the dollar.
But, having taken a beating in the past year from an
economic slowdown and the world's third worst coronavirus
outbreak, dealers said the Reserve Bank of India's surprise
disappearance as a seller of the currency on Monday had fuelled
speculation of more gains ahead.
By midday in Mumbai it was trading around 74.4 per dollar,
just off levels below 74.2 which were its highest since
mid-March.
"Overall, the Indian rupee will catch up with Asian peers
and there is a possibility of 73.60 in coming sessions," said
Rahul Gupta, head of Research-Currency at Emkay Global Financial
Services. "Going ahead, the RBI cannot be taken for granted."
The rupee has the backing of a healthier trade account and
substantial foreign investment inflows, but its gains have been
limited by what traders say have been weeks of selling by the
RBI.
Despite foreign investor inflows of $3.9 billion
year-to-date into India's stock markets, the rupee is down about
4.1% in 2020, making it one of the worst performing in the
region.
Gains elsewhere in Asia were led by export-focused markets,
with South Korea's KOSPI, up 1.6%, and Singapore shares
, over 1% higher.
In currency markets, the won and Taiwanese dollar
were the top gainers, advancing 0.3% and 0.6%,
respectively.
In Indonesia, the rupiah strengthened as much as 0.5%
per dollar on strong demand for its government bonds ahead of an
auction later in the day, though it took a knock from a finance
ministry warning on the economy.
Shares in Jakarta were however up about 0.9%.
Malaysian shares were among the sole decliners
during the session, dragged down by losses among medical glover
makers as hopes of new coronavirus treatments dented the appeal
of the sector.
HIGHLIGHTS:
** Indonesian 10-year benchmark yields are down 1.8 basis
points at 6.718%
** Top gainers on the Jakarta stock index include
Kresna Graha Investama Tbk PT up 26.14% at 111 rupiah,
Anabatic Technologies Tbk PT up 24.53% at 660 rupiah,
Acset Indonusa Tbk PT up 24.31% at 450 rupiah
** Top losers on FTSE Bursa Malaysia Kl Index
include Top Glove Corporation Bhd down 6.38% at 26.12
ringgit; Hartalega Holdings Bhd down 5.83% at 16.48
ringgit; CIMB Group Holdings Bhd down 0.29% at 3.39
ringgit
Asia stock indexes and
currencies at 0722 GMT
COUNTRY FX RIC FX FX INDEX STOCK STOCKS
DAILY YTD % S YTD %
% DAILY
%
Japan -0.19 +2.30 1.35 -1.52
China +0.12 +0.76 -0.36 10.60
India -0.15 -4.08 0.03 -5.75
Indonesi +0.20 -5.19 0.86 -15.51
a
Malaysia +0.12 -1.90 -0.45 -1.72
Philippi +0.00 +4.48 0.17 -23.82
nes
S.Korea +0.34 -2.42 1.58 7.69
Singapor +0.07 -1.81 0.99 -20.45
e
Taiwan +0.56 +2.56 0.88 6.34
Thailand -0.06 -4.93 0.66 -16.08
(Reporting by Shriya Ramakrishnan in Bengaluru; Additional
reporting by Gaurav Dogra; Editing by Patrick Graham and
Subhranshu Sahu)
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