Tim Condon News
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Indonesian bonds due 2015 headed for the worst week since January 2011 after the central bank unexpectedly raised its key interest rate for the first time in more than two years. The rupiah fell this week.
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Emerging markets from Brazil to India took steps to stem an outflow of capital as concern mounts that developed nations are approaching the beginning of the end of an era pumping unprecedented liquidity.
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Singapore bonds slumped, pushing 10- year yields to a 22-month high, after better-than-forecast U.S. jobs growth kept alive speculation the Federal Reserve will cut back on monetary stimulus.
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The Philippine peso fell for a third day and government bonds declined after U.S. data spurred speculation the Federal Reserve will rein in monetary stimulus that has bolstered demand for emerging-market assets.
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The yuan was little changed, halting a two-day gain, on speculation its rally this year will stall as the dollar strengthens against most currencies.
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China’s bond risk rose the most in a year in May and investors from Muddy Waters LLC’s Carson Block to Jupiter Asset Management Ltd. are seeking to profit from an economic slowdown as policy makers rein in debt.
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Thailand’s baht dropped toward a four-month low before U.S. data forecast to show an improvement in consumer confidence amid speculation the Federal Reserve will reduce stimulus that’s boosted demand for emerging-market assets.
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China’s yuan rose to within 0.2 percent of a 19-year high on speculation capital inflows will spur appreciation.
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Malaysia’s property companies and banks including UEM Land Holdings Bhd., CIMB Group Holdings Bhd. and IJM Corp. are set to benefit as Prime Minister Najib Razak’s election victory may spur more infrastructure spending.
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Taiwan property prices will rise less than Hong Kong and China when the Chinese currency is allowed to appreciate over a period of time, said ING Financial Markets.
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