* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* India's BSE index up 3.5%, bond yields rise post budget
* Rupee dips slightly to stand at 73 per dollar
* Broader Asian FX dips on yuan's 0.5% drop
By Rashmi Ashok
Feb 1 (Reuters) - Indian shares rose more than 3% and bond
yields gained on Monday after the country's annual budget
chalked out plans to double healthcare spending and lift caps on
foreign investment in its vast insurance market to pull the
economy out of a slump.
Regional currency markets were subdued and the Chinese yuan
CNY=CFXS traded 0.5% weaker against a stronger dollar after a
survey on Sunday showed China's factory activity grew at the
slowest pace in five months in January. Indian Finance Minister Nirmala Sitharaman unveiled an
expansionary budget with a higher-than-expected fiscal deficit
for 2021/22, and proposed increasing healthcare spending to 2.2
trillion Indian rupees ($30.20 billion). "Spending on infrastructure, capital expenditure and
healthcare will create debt, but also assets. Overall, it looks
like a very actionable budget. The bonds yields have responded
by rising," said Anindya Banerjee, vice president at Kotak
Securities for currency and fixed income.
Benchmark 10-year bond yields IN10YT=RR rose 11.8 basis
points to a high of 6.067% from Friday's close, while the rupee
INR=IN dipped 0.05% to 73 per dollar. The benchmark S&P BSE
Sensex .BSESN was up 3.5%.
Banerjee said it was the right time to overspend given the
multiplier effect, as the economy was opening up the money would
translate to increased consumer spending instead of savings as
seen during lockdowns.
The Reserve Bank of India will announce its interest rate
decision on Feb. 5 and it is largely expected to stand pat on
rates.
Philippine shares .PSI surged 3% to snap a four-session
losing streak in which it lost about 6.5%.
Indonesian shares ended 1.5% higher after initial losses.
Data showed the country's annual inflation rate slowed for the
first time in five months in January, staying below the central
bank's target range. [ nJ9N2IH00I]
"With economic activity under renewed pressure amid an
escalating domestic virus spread, demand is likely to stay
lacklustre, thereby keeping underlying price pressures weak,"
analysts at ANZ wrote.
"Overall, subdued growth and inflation warrant continued
policy accommodation."
HIGHLIGHTS:
** In the Philippines, top index gainers are PLDT Inc
TEL.PS up 7.08% and Puregold Price Club Inc PGOLD.PS up
6.67%
** Top gainers on the Jakarta stock index .JKSE include
Aneka Gas Industri Tbk PT AGII.JK up 25% and Cipta Selera
Murni PT CSMI.JK up 24.62%
** Indonesian 10-year benchmark yields are down 3.8 basis
points at 6.219%
Asia stock indexes and
currencies at 0759 GMT
COUNTRY FX RIC FX FX INDE STOCKS STOCK
DAILY YTD % X DAILY S YTD
% % %
Japan JPY= -0.06 -1.43 <.N2 1.55 2.36
25>
China
India INR=IN -0.03 +0.13 <.NS 2.86 0.31
EI>
Indones IDR= +0.07 +0.21 <.JK 3.41 1.40
ia SE>
Philipp PHP= -0.02 -0.12 <.PS 3.06 -4.55
ines I>
S.Korea
Singapo SGD= -0.08 -0.67 <.ST -0.25 1.80
re I>
Taiwan TWD=TP +1.56 +1.82 <.TW 1.80 4.60
II>
Thailan THB=TH -0.03 +0.10 <.SE 0.88 2.10
d TI>