Asian monies pare loss, SARS containment may buoy economies

Asian monies pare loss, SARS containment may buoy economies

Asian currencies pared losses on trader speculation the
containment of the deadly SARS virus, which had prompted
governments to slash growth forecasts and consumers to
hold back on spending, will buoy economies.

The Singapore dollar was little changed at S$1.7308 against
its U.S. counterpart after falling as much as 0.4 percent. The
Thai baht held at 41.72 after sliding 0.3 percent, according to
Bloomberg data. The regional currencies had fallen after U.S.
President George W. Bush said he supports a "strong dollar".

The World Health Organization last week removed Singapore
from its watch list for SARS-affected areas. Taiwan, which has the
world's third-highest number of infections, reported four more
cases of the disease, its fewest in almost a month.

"The worst is over for Asia in the sense that SARS has got
better, so for the dollar to rally significantly in Asia is quite
difficult," said Peter Soh, managing director of spot foreign
exchange at DBS Group Holdings Ltd., Southeast Asia's biggest
bank.

The South Korean won was little changed at 1,205.40 won after
sliding as far as 1,210 won, according to Seoul Money Brokerage
Services Ltd. The Philippine peso held at 53.25 peso. It was as
weak as 53.34 peso, according to the Bankers Association of the
Philippines.

The Taiwan dollar was at NT$34.699 from Friday's NT$34.712.

Overseas demand for Asian stocks also benefited regional
currencies.

2. OIL 2 X 30

Oil, spurred by thin stocks,
at 6 week high near $30

Oil, spurred by thin stocks, at 6-wk high near $30

U.S. oil prices climbed to a six-week high near US$30 a barrel on
Monday as traders reacted to a stubborn deficit in U.S.
stockpiles and a potential output cut from OPEC.

By London midday, U.S. crude futures were up 30 cents at
$29.86 a barrel -- their highest level since April 22. Benchmark
Brent crude gained 28 cents to $26.60 a barrel, just 50 cents
away from a two-month peak.

Oil prices have rallied more than four percent since the
middle of last week, when U.S. government data showed crude oil
stockpiles were stuck 12 percent below last year's levels while
gasoline tanks fell to a six percent deficit.

Coming in the week leading up to the start of the summer
driving season, when U.S. demand for motor fuel peaks, dealers
feared a potential price spike.

"With global inventory still at extremely low levels and
particular concern over low product and crude oil inventory in
the U.S., there is little obvious sign of any significant
weakness," said Barclays Capital analyst Kevin Norrish in a daily
report.

3. STOCK 1 X 28

Jakarta Index hits 11-month high

Jakarta Stock Index rises to 11-month high, Telkom gains

Bloomberg
Jakarta

Indonesian stocks rose, lifting the benchmark index to its
highest in almost a year, after inflation in May eased to the
lowest in 32 months, raising optimism the central bank will cut
interest rates. PT Telekomunikasi Indonesia paced gains.

The Jakarta Composite Index climbed 10.948, or 2.2 percent,
to 505.724, the highest since June 27, at the 4 p.m. market close
in Jakarta. Two shares rose for every one that fell. The benchmark
has gained 28.8 percent in dollar terms this year.

Lower rates would lower the discount rate factor, a tool
used to value companies, raising their valuations, some analysts
said. Companies are valued by calculating the present value of
their future cash flow.

The low inflation would "give room to the central bank to
further cut interest rates," said Erwan Teguh, an analyst at
PT Danareksa Sekuritas. "Lower interest rates mean lower discount
rates, thus the value of companies must rise".

Telkom rose Rp 275, or 5.9 percent, to Rp 4,950. Investors
expect Telkom to post a higher profit this year, helped by a gain
in the rupiah. Telkom pays for its equipment from overseas with
U.S. dollars and receives its revenue from telephone services it
provides in rupiah. Telkom also has dollar debts.

4. Salim 2 X 20

First Pacific Pangilinan
dumps post, become CEO

First Pacific Pangilinan dumps post, becomes CEO

First Pacific Co. Chairman Manuel Pangilinan said he resigned
his post to become chief executive officer (CEO) at the Hong Kong
company, which controls the biggest Philippine phone operator and
the world's largest instant-noodle maker PT Indofood Sukses
Makmur.

Anthony Salim, a member of the founding family, will become
non-executive chairman, Pangilinan said. The changes are part of
rules implemented this year by the Hong Kong stock exchange,
including appointing three independent non-executive directors, to
make companies more transparent.

"This is something I welcome," Pangilinan said in a
telephone interview. "I prefer not to be chairman, and I am more
comfortable in managing the company. The new rules require that
the roles of chairman and CEO must be divorced for better
transparency and corporate governance."

Albert Del Rosario, Philippine ambassador to the U.S., and
Robin Nicholson, special adviser to the board of directors at PCCW
Ltd., were chosen as independent non-executive directors. Benny
Santoso, commissioner of various Salim Group companies, was
appointed the third non-executive director.

The moves come after Chief Operating Officer and Finance
Director Michael Healy, and Ronald Brown, executive director and
corporate secretary, left their positions at the end of April.
They've also left the board, First Pacific said today.

Pangilinan will remain president of Philippine Long Distance
Co. and chairman of Manila developer Metro Pacific Corp. --
Bloomberg