Asian monies up as investors overseas seek to buy stocks
Asian monies up as investors overseas seek to buy stocks
Bloomberg, Singapore/Jakarta
The South Korean won and Singapore dollar rose on expectations
investors abroad will buy more Asian stocks as they bet growth in
the U.S. economy spurs demand for exports, helping the region's
economic expansion.
Overseas money managers yesterday bought a net $288 million of
South Korea's equities and NT$5.3 billion (US$156 million) of
Taiwan's stocks. The purchases were the most for both markets in
a week. Overseas demand for Thailand's shares in the past two
days were the highest since the two-day period ended Oct. 10.
There will be "more inflows into Asia and that will support
Asian currencies," said Patrick Bennett, a Singapore-based
strategist at Commerzbank AG, Germany's third-largest bank by
assets. "Asia is a leveraged trade on the global economic
recovery. Asia is a good place to be."
The won rose 0.2 percent to 1,182.45 against the dollar at
5:33 p.m. Seoul time, according to Seoul Money Brokerage
Services.
The Singapore dollar gained 0.1 percent to S$1.7431. The Thai
baht was little changed at 39.90, while Taiwan's currency held at
NT$34.010, according to Taipei Forex Inc.
The Philippine peso rose 0.3 percent to 55.175, according to
Bankers Association of the Philippines. In India, the rupee was
little changed at 45.32.
Exports make up the bulk of Asian economic production, and
most Asian economies count the U.S. as their biggest overseas
market. Shipments abroad contribute about 40 percent of South
Korea's gross domestic product. The value of Singapore's exports
is more than 1.5 times GDP and exports make up about half of
Taiwan's economy. They account for half the GDP of
Thailand.
Economists at companies including Lehman Brothers Inc., Cantor
Fitzgerald LP and Bank of Tokyo-Mitsubishi Ltd. are more
optimistic about the U.S. economy than a month ago, a monthly
Bloomberg News survey shows. The GDP will expand at a 4 percent
annual rate from October through December, based on the median
forecast of 56 economists surveyed by Bloomberg News from Oct. 24
to Nov. 3. The forecast was 3.8 percent a month ago.
Benchmark stock indexes in Thailand and Indonesia were among
top 10 performers in the world this year. Thailand's SET index
doubled, as the Jakarta Composite Index rose 58 percent in dollar
terms. Singapore's Straits Times Index climbed 32 percent in
2003.
The 29 percent gain in South Korea's Kospi index this year
didn't deter international fund managers from putting more money
net $144 million of the country's stocks today.
The Indonesian rupiah rose 0.4 percent to 8,481 against the
dollar after a government bond sale yesterday drew bids for more
than two times the amount of debt on offer, boosting demand for
the domestic currency.
The government sold Rp 2.5 trillion of seven-year local-
currency bonds, priced to yield 12.92 percent. Some of the bids
came from investors outside the country, the Finance Ministry
said, though it wouldn't give their value.
"Demand is still there for government bonds," which helps
support the rupiah, said Wiling Bolung, head of trading at HSBC
Bank Jakarta, a unit of the world's second-biggest bank by market
value.