EMERGING MARKETS-Malaysian shares slip on political woes as trade data supports ringgit

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I
* Ringgit climbs as Sept exports jump, trade surplus
increases
* 2021 Budget passage to be key test for Malaysia govt - ING
* Thai baht hits over 2-week high on data boost

By Rashmi Ashok
Oct 28 (Reuters) - Malaysian shares eased on Wednesday as
political tensions cast doubt over whether the government could
pass the 2021 budget next week, while a surge in September
exports and ballooning trade surplus helped prop up the ringgit.
Broader Asian equities were subdued as COVID-19 cases spiked
in the United States, Russia, France and other countries,
prompting curbs from many European nations, with the looming
U.S. presidential election adding to worries. The Malaysian stock index .KLSE fell 0.4%, continuing
recent declines, as uncertainty after Prime Minister Muhyiddin
Yassin's failed bid to declare a state of emergency sparked
calls for his resignation.
"All eyes are on the 2021 Federal Budget next week, which
comes as a key test of confidence in Prime Minister Muhyiddin
Yassin's coalition government," analysts at ING wrote.
"We see politics continuing to exert weakening pressure on
the ringgit. We are reviewing our end-year 4.18 USD/MYR forecast
for a possible upward revision."
While a key ally affirmed support for the premier, his
position still remains precarious, with a wafer-thin majority in
parliament and no guarantee that all ruling coalition lawmakers
will vote in favour of the budget. The ringgit MYR= , however, reversed early losses to stand
0.2% higher after data showed Malaysia's exports jumped 13.6% in
September, rising at their fastest pace in nearly two years amid
a surge in demand for manufactured and agricultural goods.
ING analysts say the wider trade surplus, fuelled by subdued
imports, is likely to remain the key life support for the
currency amidst the ongoing political uncertainty.
Thailand's baht THB=TH rose 0.3% to its highest in more
than two weeks and the stock index .SETI added 0.5% after data
showed the country's factory output dropped a
smaller-than-expected 2.75% in September. Thailand is set to release trade data for September on Oct.
30. Investors will closely watch for signs of a recovery in its
exports from the 8.2% drop recorded in August.
The Chinese yuan CNY=CFXS eased against the dollar after
some banks tweaked a methodology for fixing the yuan's daily
midpoint, in what some believe is a sign that Beijing may be
attempting to slow the pace of the rally in the currency.
Despite the yuan's weakness casting a shadow, most Asian
currencies clocked slim gains as the dollar =USD slipped in
the face of rising uncertainty around the Nov. 3 election.
** Top gainers on the Thailand's SETI .SETI included Thai
Energy Storage Technology 3K-BAT.BK , up 29.36%, and Erawan
Hotel Growth Property Fund ERWPFu.BK , up 12.44%.
** Top losers on FTSE Bursa Malaysia Kl Index .KLSE
included Top Glove Corporation Bhd TPGC.KL , down 1.68%, and
Hartalega Holdings Bhd HTHB.KL , down 1.42%.
** Singapore's 10-year benchmark yield was down 0.6 basis
point at 0.843%,​​ while the 5-year benchmark yield fell 1.2
basis points to 0.464%​​.


Asia stock indexes and
currencies at 0649 GMT
COUNTRY FX RIC FX FX INDEX STOCK STOCK
DAILY YTD % S S YTD
% DAILY %
%
Japan JPY= +0.16 +4.20 .N225 -0.29 -1.01
China .SSEC 0.52 7.25
S>
India INR=IN -0.09 -3.24 .NSEI -0.33 -2.62
Malaysi MYR= +0.19 -1.54 .KLSE -0.33 -5.88
a
Philipp PHP= +0.02 +4.71 .PSI -0.58 -18.3
ines 9
S.Korea .KS11 0.62 6.72
C>
Singapo SGD= +0.12 -1.07 .STI -0.37 -22.3
re 2
Taiwan TWD=TP +0.99 +5.30 .TWII -0.63 6.64
Thailan THB=TH +0.26 -3.92 .SETI 0.66 -22.9
d 7