* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I
* Indonesia 10-year bond prices rise most since March 20
* Malaysia budget due at 0800 GMT
* Most stock indexes headed for weekly gains
By Anushka Trivedi
Nov 6 (Reuters) - Indonesia's rupiah firmed more than 1% on Friday and was
set to mark its best week since June, while other emerging Asian currencies and
stock markets also gained as Democrat Joe Biden edged closer to victory in the
U.S. presidential election.
The rupiah IDR= hit a four-month high against the dollar and was set to
advance around 2.6% for the week, as Thursday's drop in Treasury yields to near
three-week lows encouraged investors to push funds into Indonesia's
high-yielding debt. US/
Expectations of a divided U.S. Congress that will struggle to pass major
fiscal stimulus has stoked expectations this week that the Federal Reserve will
have to continue to pump more cash into the economy through bond-buying and
other emergency measures.
The more quantitative easing the Fed does, the more funds are likely to
trickle down to emerging markets, particularly those with attractive local bond
yields.
Indonesian 10-year benchmark yields ID10YT=RR were down 25.5 basis points
at 6.354%, the biggest fall since March 20. Bond prices rise as yields fall.
"Republican control of the Senate suggests that no major fiscal stimulus is
in the offing," said Wei Liang Chang, a macro strategist at DBS bank, Singapore.
"This has also led to a drop in U.S. Treasury yields, which raises the
attractiveness of the higher-yielding rupiah."
Investors have also bought the yuan and other China-linked assets over the
past two days on the view that a Biden presidency will mean a less hawkish trade
and foreign policy.
The yuan CNY=CFXS dipped but was still set to mark its best week in a
month, while Taiwan's dollar TWD=TP and the Thai baht THB=TH jumped 1.3% and
0.6%, respectively.
After investors dumped global equities in October ahead of the election,
this week has seen most stock markets rise. Malaysian shares .KLSE and the ringgit MYR=MY were steady ahead of a
2021 budget announcement, seen as crucial for Prime Minister Muhyiddin Yassin as
he faces threats to his government. U.S. bank Citi said it expected the budget to include a 28 billion ringgit
($6.76 billion) provision for COVID-19 related matters and target boosting
revenue by introducing new taxes.
Trade-reliant Malaysia is in dire need of stimulus as the pandemic forced
its economy into its first contraction in over a decade in the second quarter.
Thailand's 10-year government bond yields TH10YT=RR are down 0.5 basis
points at 1.33%
** A four-day rally in the Singapore's benchmark .STI came to a halt as
shares fell 0.5%
** Top gainers on FTSE Bursa Malaysia Kl Index .KLSE include Axiata Group
Bhd AXIA.KL up 2.62% and Petronas Dagangan Bhd PETR.KL up 2.54%
Asia stock indexes and currencies
at 0606 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS STOCKS
DAILY % YTD %
Japan JPY= -0.09 +4.88 .N225 1.01 2.93
China CNY=CFXS -0.27 +5.06 .SSEC -0.73 8.06
India INR=IN +0.49 -3.58 .NSEI 0.48 0.08
Indonesia IDR= +1.27 -2.18 .JKSE 0.54 -16.04
Malaysia MYR= +0.10 -1.21 .KLSE 0.40 -5.12
Philippines PHP= +0.11 +5.03 .PSI 0.62 -14.45
S.Korea KRW=KFTC +0.45 +2.96 .KS11 0.00 9.83
Singapore SGD= -0.01 -0.39 .STI -0.45 -20.04
Taiwan TWD=TP +1.26 +5.58 .TWII 0.42 8.14
Thailand THB=TH +0.62 -2.41 .SETI -0.36 -20.26
($1 = 4.1390 ringgit)
(Editing by Patrick Graham and Rashmi Aich)