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South Korean shares fall over 1%
S.Korean won, Indian Rupee, Philippine peso down 0.8% each
Taiwan dollar rises up to 0.5% to 3-year high
By Roshan Thomas
June 13 (Reuters) - Asian stock markets and currencies fell on Friday as investors rushed to safe havens after Israel struck Iran's nuclear and military sites, deepening market jitters already stoked by global trade tensions.
Israel said it was declaring a state of emergency in anticipation of a missile and drone strike by Tehran, after what it called a "preemptive strike" over Iran's nuclear programme.
Crude prices surged over 9% on worries about disrupted oil supplies. Rising oil prices typically pressure emerging Asian currencies by widening current account deficits in net oil-importing countries.
The South Korean won KRW=KFTC and the Philippine peso PHP= fell 0.8% each. The Indian rupee INR=IN fell 0.6% while the Indonesian rupiah IDR= dropped 0.5%.
An index measuring the dollar against six other currencies =USD rose 0.5%, rebounding from a multi-year low hit earlier this week.
Israel-Iran tensions are leading to a more cautious tone in markets and in turn weighing on regional currencies, said Alan Lau, FX strategist at Maybank.
The development comes ahead of multiple central bank meetings next week such as the Bank of Japan, the Bank of England and the Federal Reserve "of which the outcomes on net could support a USD rebound," Lau said.
The Thai baht THB=TH weakened 0.2%. Maybank analysts said in a note that while higher oil prices are weighing on the currency, the uptick in gold prices was providing some support.
The Malaysian ringgit MYR= lost 0.5%, in line with the broader movement, even as Malaysia stands out as the only net oil and gas exporter among the major emerging Asian economies.
Bucking the trend, the Taiwan dollar TWD=TP rose as much as 0.5% to its highest level in three years.
A Taiwan-based forex trader told Reuters that while foreign investors continued to enter Taiwan, a rebound in the U.S. dollar as well as a weakening of the South Korean won had reduced the magnitude of the currency's appreciation.
The central bank had also acted to keep the Taiwan dollar from strengthening more, keeping the currency close to the 29.5 mark, the trader said.
Stock markets across the region also fell. MSCI's gauge of Asian emerging market equities .MIMS00000PUS dropped 1.1%.
South Korean shares .KS11 fell up to 1.5%. Equities in Taiwan .TWII were down 1%, while those in Singapore .STI and Malaysia .KLSE lost 0.4% and 0.6%, respectively.
HIGHLIGHTS:
** Thai central bank chief sees need for greater inflation target flexibility
** Indonesia, Singapore sign deals on power trade, carbon capture
Asia stock indexes and currencies at 0701 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | -0.11 | +9.43 | .N225 | -0.89 | -5.16 |
China | CNY=CFXS | -0.13 | +1.65 | .SSEC | -0.78 | 0.72 |
India | INR=IN | -0.59 | -0.57 | .NSEI | -0.76 | 4.45 |
Indonesia | IDR= | -0.46 | -1.32 | .JKSE | -0.64 | 1.10 |
Malaysia | MYR= | -0.54 | +5.38 | .KLSE | -0.58 | -7.58 |
Philippines | PHP= | -0.81 | +3.46 | .PSI | 0.40 | -1.87 |
S.Korea | KRW=KFTC | -0.82 | +7.60 | .KS11 | -0.87 | 20.63 |
Singapore | SGD= | -0.28 | +6.48 | .STI | -0.43 | 3.10 |
Taiwan | TWD=TP | +0.16 | +10.70 | .TWII | -0.96 | -4.18 |
Thailand | THB=TH | -0.17 | +5.82 | .SETI | -0.48 | -19.78 |
Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
Asian stock markets https://tmsnrt.rs/2zpUAr4
(Reporting by Roshan Thomas in Bengaluru and Roger Tung in Taipei; Editing by Mrigank Dhaniwala and Rachna Uppal)
((Roshan.Thomas@thomsonreuters.com))
