EMERGING MARKETS-Malaysia stocks, ringgit fall ahead of c.bank meeting; rupiah up

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
* BNM seen holding rates, providing fiscal support
* Increase in virus cases in Asia to dent FX appeal -
analyst
* Rupiah at seven-week high

By Anushka Trivedi
May 6 (Reuters) - Malaysian shares dropped 1% to a six-month
low and the ringgit eased on Thursday after COVID-19 curbs were
imposed in the capital Kuala Lumpur and as investors awaited the
country's central bank rate decision due later in the day.
Other Asian stock markets including those of the Philippines
.PSI , Indonesia .JKSE and Taiwan .TWII slid around 0.3%,
as sentiment was soured by a drop in Chinese shares .SSEC
which resumed trading after holidays this week.
Malaysia shares .KLSE slid and the ringgit fell 0.2% as
Kuala Lumpur's two-week curbs added to lockdowns already in
place in economically prosperous regions of the country amid a
resurgence in coronavirus infections. Bank Negara Malaysia (BNM) is set to meet for a policy
review later in the day and is expected widely to keep the
benchmark rate at a record low of 1.75% but take measures to
offset the economic slump.
"After the extension of social restrictions into mid-May,
there is little to suggest an urgent need for further rate
cuts," Mizuho analysts wrote, expecting BNM to remain dovish for
some time.
BNM may "defer to more targeted fiscal-healthcare
coordination...provide liquidity and facilitate loan moratoriums
or restructuring to ensure the pandemic does not set off a
financial contagion."
Emerging market currencies slipped as the U.S. dollar
USD= built on momentum stemming from a strong economic
recovery and a lift in inflation raising chances of a rate hike.
FRX/
The Chinese yuan CNY=CFXS , the Thai baht THB=TH , South
Korean won KRW=KFTC and the Philippine peso PHP= all fell
between 0.1% and 0.3%.
"We think U.S. Treasury 10-year yields will reach 2% by the
end of the year...so in the near term, the U.S. dollar looks
like its found a floor and that suggests Asian currencies will
largely be on the back foot," said Mitul Kotecha, chief EM Asia
& Europe strategist at TD Securities.
"The increase in virus cases across much of the region is
also likely to dent support for Asian currencies," he added.
The Indonesian rupiah IDR= was an outlier, jumping 0.6% to
a seven-week high a day after quarterly gross domestic product
(GDP) data signalled that an economic recovery was afoot.
** Indonesian 10-year benchmark yields are down about 0.89
basis points at 6.468%
** Top losers on the Malaysia index include Supermax Corp
SUPM.KL , down 11.5%, and Hartalega Holdings Bhd HTHB.KL ,
down 5.4%
** India reported a record 412,262 new COVID-19 cases on
Thursday and a record 3,980 daily death toll Asia stock indexes and currencies at 0425 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD %
Japan JPY= -0.18 -5.61 .N225 1.68 6.75
China CNY=CFXS -0.08 +0.75 .SSEC -0.22 -0.98
India INR=IN 0.00 -1.14 .NSEI 0.52 5.09
Indonesia IDR= +0.63 -2.09 .JKSE -0.11 -0.16
Malaysia MYR= -0.19 -2.50 .KLSE -0.90 -4.04
Philippines PHP= -0.05 +0.05 .PSI -0.65 -12.34
S.Korea KRW=KFTC -0.24 -3.47 .KS11 0.32 9.89
Singapore SGD= -0.11 -1.17 .STI 0.26 11.18
Taiwan TWD=TP -0.07 +1.80 .TWII -0.03 14.29
Thailand THB=TH -0.29 -3.94 .SETI 0.94 7.89