* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Indian federal budget presentation due around 0530 GMT
* Infrastructure spending boost, tax cuts eyed
* Philippine equities up 2%, other Asian stocks also gain
By Rashmi Ashok
Feb 1 (Reuters) - Indian shares edged higher and the rupee
held steady ahead of the country's budget where large
infrastructure spending and tax cuts will likely be unveiled to
boost the pandemic-hit economy.
Philippine stocks .PSI jumped more than 2% after heavy
losses last week, while other Asian equities pushed higher,
although worries over vaccine rollouts and economic recovery
persisted among investors. Indian Finance Minister Nirmala Sitharaman has promised a
'budget never seen before', where she is expected to increase
spending by more than 15% in 2021-22 with an emphasis on
infrastructure and healthcare. The government will also have to play a balancing act, given
the expected massive fiscal deficit in 2020-21 due to COVID-19
stimulus measures and lower revenue, and the continued need for
higher spending in the coming year to pull the economy out of a
slump.
"Generally budgets create a negative sentiment from the
financing numbers. This time around, since 2020 was such a
washout year, all the negatives are priced in," said Anindya
Banerjee, vice president at Kotak Securities for currency and
fixed income.
"All in all, the actual borrowing numbers could actually be
less than the street estimates, and the fiscal deficit could be
a tad lower than what the consensus is, so there's room for a
positive surprise for bonds and a definite positive for the
rupee," he added.
The Reserve Bank of India is also set to begin a three-day
meeting on Wednesday before announcing its interest rate
decision on Feb. 5, where it is largely expected to stand pat on
rates.
Indian shares .BSESN rose 0.3% and the rupee INR=IN held
steady at 72.9 per dollar ahead of the budget presentation due
around 0530 GMT.
Elsewhere, most Asian currencies were subdued, taking the
lead from the yuan CNY=CFXS which was off 0.5% after a survey
on Sunday showed China's factory activity grew at the slowest
pace in five months in January, hit by a wave of domestic
coronavirus infections. "The data is unlikely to bode well for the yuan in the short
term, with USDCNY likely to continue to trade with an upwards
bias," wrote Mitul Kotecha, senior emerging markets strategist
at TD Securities.
Broader Asian stock markets managed to shed early losses and
push higher, while Malaysian markets were shut for a public
holiday.
HIGHLIGHTS:
** In the Philippines, top index gainers are Puregold Price
Club Inc PGOLD.PS up 6.39% and JG Summit Holdings Inc JGS.PS
up 6.33%
** Top losers on the Singapore STI .STI include: Mapletree
Logistics Trust MAPL.SI down 2.53% and Capitaland Ltd
CATL.SI down 2.18%
** Indonesian 3-year benchmark yields are down 1.3 basis
points at 5.123%
Asia stock indexes and
currencies at 0432 GMT
COUNTRY FX RIC FX FX INDE STOCKS STOCK
DAILY YTD % X DAILY S YTD
% % %
Japan JPY= +0.02 -1.36 <.N2 1.23 2.04
25>
China
(Editing by Jacqueline Wong)