Markets lower as infections rise

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Philippine stocks fell almost 1 percent for a second day on Friday, leading a wave of losses for Asian stocks and currencies as an eight-day rally in Chinese markets ground to a halt and investors worried about the scale of new coronavirus infections.

The southeast Asian nation has reported record daily infection numbers on three of the past six days, and while Thursday saw no deaths for the first time in four months, analysts say the prospect of new restrictions to halt the outbreak is weighing on markets.

Shares in Manila fell more than 0.8 percent in early deals, and the peso, which has proven relatively resilient this week on the back of gains for other regional currencies, lost just over 0.1 percent.

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“The Philippine market has been lagging … as daily cases rise,” said Jennifer Lomboy, a fixed income fund manager at First Metro Asset Management. “The rise in reported infections has crippled business activity … and continues to cast doubts on economic recovery.”

In Indonesia, which posted its biggest single-day rise in cases on Thursday, shares were marginally lower while the rupiah fell half a percent.

A Reuters poll on Thursday found bets on the Indonesian currency had turned bearish for the first time since mid-May on the prospect of further easing by the central bank which may dent the appeal of its high-yielding government bonds.

Barclays, for example, expects a 25 basis point rate cut by Bank Indonesia next week in what would be the fourth cut this year.

Markets in Singapore were closed for an election that is almost certain to be won by the ruling People’s Action Party as the city-state’s economy heads for its worst-ever recession.

The 1 percent fall in Shanghai’s main index, which often tends to drive markets across Asia, came after Chinese state-run media on Thursday urged investors stacking up on highly leveraged bets to be prudent.

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