EMERGING MARKETS-Asian stocks, currencies rally on Fed's move to boost liquidity

* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Indonesia shares jump 3.5%
* Rupee weakens after border clash with China
* Singapore to ease most restrictions by Friday

By Nikhil Nainan
June 16 (Reuters) - Stocks and currency markets in Asia
rallied on Tuesday after the U.S. Federal Reserve readied its
corporate bond buying programme, boosting risk appetite that was
otherwise receding over fears of a second wave of coronavirus
infections.
The Fed provided more details of its anticipated programme
to buy investment grade U.S. corporate bonds in the secondary
market from Tuesday, reinforcing hopes that authorities would
continue to flood the market with liquidity. "While it is almost inevitable that we see bouts of new
virus cases globally, ultimately the massive liquidity injection
from major central banks will overshadow concerns," said Edward
Ng, a Singapore-based portfolio manager at Nikko Asset
Management.
Indonesia shares .JKSE led the charge in Southeast Asia,
rising 3.5%, while Singapore .STI and the Philippine .PSI
closed around 2% higher.
In India, however, stocks pulled back by afternoon after the
country's army said one of its officers and two soldiers were
killed in a "violent faceoff" on the border with China.
The rupee INR=IN eased as much as 0.3% against the dollar
after the news broke, but the stocks .NSEI closed marginally
higher. .BO
The overnight announcement by the U.S. central bank to
infuse further liquidity overshadowed fears of a fresh wave of
infections following the emergence of new cluster of COVID-19
cases in Beijing in recent days.
The improved risk appetite also drove gains in currency
markets, at the expense of the dollar, with the South Korean won
KRW=KFTC emerging as the best performer, strengthening 0.7%.
The pace of economic reopening has varied across Asia, with
the Philippines saying partial restrictions in Manila would
remain for two more weeks, while Singapore plans to remove most
of its restrictions by Friday. Indonesia's economy faces the risk of recession this year
due to the pandemic, its finance minister said, adding that only
a small amount of the government's billion dollar budget to
fight the crisis had been doled out. stock indexes and currencies at 1016 GMT
COUNTRY FX FX FX INDEX STOCKS STOCKS
RIC DAILY % YTD % DAILY % YTD %
Japan JPY= -0.06 +1.15 .N225 4.88 -4.54
China CNY=CFXS +0.15 -1.63 .SSEC 1.44 -3.88
India INR=IN -0.25 -6.34 .NSEI 0.86 -18.66
Indonesia IDR= +0.21 -1.00 .JKSE 3.53 -20.84
Malaysia MYR= +0.07 -4.32 .KLSE 1.26 -4.47
Philippines PHP= +0.25 +1.08 .PSI 1.91 -19.62
S.Korea KRW=KFTC +0.73 -4.21 .KS11 5.28 -2.71
Singapore SGD= +0.04 -3.30 .STI 2.03 -17.25
Taiwan TWD=TP +0.22 +1.35 .TWII 1.82 -4.05
Thailand THB=TH +0.10 -3.76 .SETI 1.87 -13.46