Risk Sentiment Sours

Risk sentiment soured in Asia on Tuesday while the greenback gained, which saw Asia EM FX drop.

• CNH: Offshore yuan heads into Europe slightly weaker, but holding near 3-year highs. The PBOC set its central USD/CNY mid-point at 6.4254, 32 pips above sell-side estimates, signalling that it wants to reign in the redback's rally, the pair mostly looked through China's inflation data.
• SGD: Singapore dollar is slightly weaker as coronavirus concerns persist after the latest reports indicate that Malaysia has decided to suspend the Green Lane scheme with Singapore from May 13 and normal travel arrangements will resume.
• TWD: After touching a 24-year high yesterday Taiwan dollar has retreated, the pair is holding below 28.00 and has still not filled yesterday's opening gap. Limited news flow, Taiwan's President said Taiwan and European Union should begin bilateral investment talks to further deepen ties.
• KRW: Won weakened from the open and wiped out yesterday's gains. The losses came even as data earlier showed South Korea's exports soared 81.2% Y/Y in the first 10 days of May as shipments of chips, autos and petroleum goods remained robust amid a global economic recovery.
• MYR: Ringgit is weaker, the gov't imposed a nationwide Movement Control Order (MCO) across the whole country days after announcing similar curbs in Selangor and Kuala Lumpur. The MCO takes effect on Wednesday and will last through Jun 7. PM Muhyiddin warned that "Malaysia is facing a third wave that could break into a national crisis."
• IDR: Rupiah is flat, data showed Indonesia's retail sales rose 9.8% Y/Y in March, while Intertek data showed that Indonesia's palm oil exports rose by a quarter in April vs. a year before.
• PHP: Peso fell, Q1 GDP fell more than expected at -4.2% compared to -3.2% expected. Following the data the government said it would continue reopening gradually and would be guided by data.
• THB: Baht bucks the trend and is stronger after posting a 2.5 month low yesterday, PM Prayuth chairs the weekly cabinet meeting today. Ministers will discuss and may give a nod to a new round of stimulus measures.