EMERGING MARKETS-Asian bond yields elevated, equities tick greater forward of Powell speech

* Graphic: World FX charges http://tmsnrt.rs/2egbfVh

* Graphic: International flows into Asian shares https://tmsnrt.rs/3f2vwbA

* Asian shares consolidate after rise in U.S. bond yield – analyst

* Philippines shares get well from early losses on COVID-19 curbs

* Indian rupee companies, up practically 1% up to now in February

By Rashmi Ashok

Feb 23 (Reuters) – Most Asian equities rose whereas bond yields remained elevated, as traders awaited U.S. Federal Reserve Chairman Jerome Powell’s Congressional testimony later for clues into the central financial institution’s considering on inflation expectations and rising yields.

Yields on benchmark 10-year bonds within the area stood at multi-month highs as traders lately offered Asian bonds after a soar in U.S. Treasury yields . latest rally in Asian equities has been capped by rising bond yields. Greater bond yields are typically seen as a damaging for equities as they diminish the attraction from shares’ dividend payouts, whereas debt servicing for firms turns into costlier attributable to greater borrowing prices.

“This explains why equities throughout the Asia-Pacific have entered a consolidative part within the final couple of days. Shares have rallied a good bit since March, making them weak to rising yields, notably within the tech sector,” mentioned Margaret Yang, strategist at DailyFX.

“Powell’s testimony might be carefully eyed to see how tolerant the Fed is in view of rising yields, and the way they may tackle a strengthening inflation outlook.”

Most Asian rising currencies inched greater because the greenback hit a six-week low.

The Indian rupee INR=IN rose to 72.333 per greenback. It has risen repeatedly for the final three months, and is up practically 1% up to now in February.

Analysts at HSBC lately raised their development forecasts for India to 11.2% from 9% for the approaching fiscal yr, noting that the nation was experiencing a remarkably sturdy restoration amid a sustained decline in COVID-19 instances.

“By some measures, industrial exercise is just a few share factors under its pre-pandemic peak. Mobility, too, has largely recovered, which ought to assist spur companies demand, which continues to be 25% under pre-pandemic degree, within the coming months.”

Philippine equities closed flat after falling 1% earlier after the federal government prolonged coronavirus restrictions within the capital Manila late on Monday.

Manila – which accounts for 40% of the Philippines’ financial output and has been beneath partial curbs since August – will see partial curbs retained till vaccinations begin, limiting the working capability of companies and public transport. do not know the way lengthy it’ll take earlier than the vaccine will be successfully rolled out and lockdown measures will be lifted. Even as soon as the vaccination is kicked off, it’ll take someday, and the efficacy of the vaccine to the general public is unknown,” mentioned DailyFX’s Yang.

The inoculation drive within the Philipines is predicted to begin with 600,000 doses of the Sinovac Biotech vaccines donated by China, which is predicted to reach later this month.

Inventory markets had been shut in Japan attributable to a public vacation.

HIGHLIGHTS

** Indonesian 10-year benchmark yields are up 2.Four foundation factors at 6.685%​​

** Malaysia’s 10-year benchmark yield is up 0.9 foundation factors at 2.984%​​

** Prime gainers on the Thailand’s SETI embody Group Lease PCL up 26.53% and TRC Building PCL up 12.5%

Asia inventory indexes and

currencies at 0522 GMT

COUNTRY FX RIC

FX

FX INDE STOCKS STOCK

DAILY YTD %

X DAILY S YTD

%

%

% China

0.59 5.49

S>

EC>

India

INR=IN

+0.16 +0.94

1.13 6.15

EI>

Indones

+0.07 -0.43

0.07 4.70 ia

SE>

Malaysi

+0.00 -0.50

0.33 -3.17 a

SE>

Philipp

+0.04 -1.30

0.06 -4.55 ines

I>

S.Korea

0.31 7.51

C>

11>

Singapo

+0.10 +0.07

0.71 2.03 re

I>

Taiwan

TWD=TP

+1.58 +2.11

0.11 11.51

II>

Thailan THB=TH

+0.10 -0.13

1.44 3.45 d

TI>

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