EMERGING MARKETS-SMIC curbs help S.Korean, Taiwan stocks after Chinese data boost

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    * Jakarta COVID-19 curbs extended 
    * Malaysia's ruling coalition wins state election; reduces
political uncertainty 
    * South Korea, Taiwan chipmakers rise after U.S tightens
exports
to China's SMIC

    Sept 28 (Reuters) - South Korean and Taiwanese stocks each
closed over 1% higher on Monday as investors priced in a boost
for their tech-focussed economies from tighter U.S. curbs on
China's biggest chipmaker, adding to a bright start to the week
for most Asian markets.
    Data showing profits at Chinese industrial firms grew for a
fourth straight month underpinned stock markets in the region,
although the extension of export curbs on Semiconductor
Manufacturing International Corp left
Shanghai's broad index marginally lower.
    The dual-listed chipmaker's shares plunged more than 5% in
both Shanghai and Hong Kong.

    Local chipmakers gained the most in Seoul, helping the
market rise 1.3% as the number of domestic COVID-19
infections fell to its lowest in nearly two months. Taiwan's
stock market ended nearly 2% higher. 
    "The knee-jerk reflex (to the SMIC decision), apart from
caution, may be for Japanese, Korean and Taiwanese chipmakers to
opportunistically benefit from substitution trades," analysts
from Japanese bank Mizuho said in a note.
    China's recovery has been among the few bright spots for the
global economy as a second wave of coronavirus infections mounts
in Europe, prompting countries to reimpose restrictions and
quashing hopes that the continent was turning a corner.
    One of a handful of Asian countries still struggling to get
COVID-19 numbers down is Indonesia and stocks there fell
0.5% as curbs were extended in the capital Jakarta. 
    India is also struggling, but markets there climbed
1.4% on hopes that the government would pump more money into
public sector banks.
    The Reserve Bank of India is expected to leave its key
interest rate unchanged on Thursday with inflation above its

EMERGING MARKETS-SMIC’s U.S. curbs aid S.Korean, Taiwan stocks after Chinese data boost

0 Comments

    * Jakarta COVID-19 curbs extended 
    * Malaysia's ruling coalition wins state election; reduces
political uncertainty 
    * South Korea, Taiwan chipmakers rise after U.S tightens
exports
to China's SMIC

    By Nikhil Nainan
    Sept 28 (Reuters) - South Korean and Taiwanese stocks
climbed over 1% each on Monday as investors priced in a boost
for their tech-focussed economies from tighter U.S. curbs on
China's biggest chipmaker, adding to a broadly brighter start
across Asian markets. 
    Data showing profits at Chinese industrial firms grew for a
fourth straight month underpinned stock markets in the region,
although the extension of export curbs on Semiconductor
Manufacturing International Corp left
China's own indices flat after a strong start.

    The dual-listed chipmaker's shares plunged more than 5% in
both Shanghai and Hong Kong.

    Stocks in Seoul climbed 1.2% with local chipmakers
gaining the most, also helped by a fall in the number of daily
COVID-19 infections to its lowest in close to two months. Taiwan
stocks saw a similar rise. 
    "The knee-jerk reflex (to the SMIC decision), apart from
caution, may be for Japanese, Korean and Taiwanese chipmakers to
opportunistically benefit from substitution trades," analysts
from Japanese bank Mizuho said in a note.
    China's recovery has been among the few bright spots for the
global economy as a second wave of coronavirus infections mounts
in Europe, prompting countries to reimpose restrictions and
quashing hopes that the continent was turning a corner. 
    "Broadly I would attribute the lift for Asia markets to the
positive data out of China," said Jingyi Pan, senior market
strategist at retail trading platform IG, adding she expected
factory activity (PMI) survey from China on Wednesday to
reinforce the recovery. 
    Indonesian shares, down 0.6%, were again an
exception as COVID-19 curbs were extended in the capital
Jakarta. 
    Currencies were more of a mixed bag,