EMERGING MARKETS-Philippine leads Asia declines as Trump ends stimulus talks

* Philippine shares down 1% to 1-week low
* Malaysia to impose targeted lockdowns to halt infections
surge
* Biden lead widens against Trump

Oct 7 (Reuters) - The Philippines led declines across Asia's
emerging stock markets on Wednesday after U.S. President Donald
Trump ended talks on a U.S. stimulus package, adding to negative
sentiment across the region.
Shares in Manila .PSI fell 1% to their lowest in a week,
extending losses from Tuesday after data showed inflation
slowing to a four-month low in September. Shares in Kuala Lumpur .KLSE and Jakarta .JKSE were down
0.3% and 0.5%, respectively as markets tracked falls on Wall
Street after Trump said further aid for the world's biggest
economy would have to wait until after November election.
"Asian markets will likely spend the day digesting the
implications of a no U.S. stimulus agreement," said Jeffrey
Halley, a senior Asia market analyst at OANDA.
"I do not believe hopes of a stimulus deal are now gone
forever," he added.
Trump trails Democrat Joe Biden in most polls and if his
rival sweeps the election, Democrats are likely to push ahead
with a package. Markets in Asia are also eyeing whether a Biden
presidency would ease tense relations with China - the region's
main engine of growth.
Chinese markets will reopen after a week-long holiday on
Friday.
In the Philippines, slowing inflation has raised questions
about economic recovery, with prts of the country still under
restrictions and the central bank suggesting it will hold rates
so prior cuts can filter through.
"The downtrend for inflation points to fading economic
momentum as consumer demand remains constrained despite recent
moves by the government to gradually reopen the economy," ING's
senior economist for the Philippines, Nicholas Mapa said.
It is not just demand that is cooling inflation, with a
relatively robust peso PHP= keeping a lid on the cost of
imports. The currency inched 0.1% higher on Wednesday.
Asia's other emerging currencies were flat to slightly
higher against the dollar, with the greenback holding steady
from overnight and not seeing further buying. FRX/
After taking to Twitter to end the talks, Trump later urged
Congress to pass funding for airlines, small businesses and
provide $1,200 stimulus checks for Americans. Malaysia's ringgit MYR= dipped a little over 0.1% as the
country said it will be using targeted lockdowns in areas with
high rates of coronavirus infections as cases spike.
** ABS-CBN ABS.PS up 50% after announcing a return to free
TV broadcast for entertainment shows from Oct. 10
** Top losers in the Philippines are International Container
Terminal Services Inc ICT.PS , Metropolitan Bank and Trust Co
MBT.PS and Aboitiz Power Corp AP.PS
** Indonesian 10-year benchmark yields up 2.19 basis points
at 6.917%
Asia stock indexes and currencies at 0351 GMT
COUNTRY FX FX FX INDEX STOCKS STOCKS
RIC DAILY % YTD % DAILY % YTD %
Japan JPY= -0.06 +2.77 .N225 -0.24 -1.18
China CNY=CFXS - +2.42 .SSEC - 5.51
India INR=IN +0.00 -2.82 .NSEI 0.00 -4.16
Indonesia IDR= +0.07 -5.58 .JKSE -0.50 -21.04
Malaysia MYR= -0.14 -1.64 .KLSE -0.31 -5.28
Philippines PHP= +0.11 +4.53 .PSI -1.02 -25.14
S.Korea KRW=KFTC -0.06 -0.46 .KS11 0.37 8.05
Singapore SGD= +0.06 -1.28 .STI -0.01 -21.53
Taiwan TWD=TP +0.63 +4.61 .TWII 0.21 6.12
Thailand THB=TH -0.45 -4.50 .SETI -0.04 -20.90