* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I
* S. Korea shares end at record high
* Indonesian shares hit highest level since Jan 30
* Currency investors await Fed meeting outcome
By Shriya Ramakrishnan
Dec 16 (Reuters) - Emerging stock markets in Asia gained on
Wednesday with Malaysia rising for a second straight session
after the 2021 budget got approval in parliament, lifting hopes
of a faster recovery for the third-largest economy in Southeast
Asia.
The Malaysian stock index .KLSE has gained roughly a third
in value since hitting lows in March's coronavirus-driven
selloff and a 1.3% rise in morning trade meant it is now up
almost 6% for the year. The recovery, driven by hopes of a global economic bounce
next year, has gained pace in Asia in the final weeks of 2020,
even as the United States and Europe struggled with fresh
COVID-19 infections.
The budget vote in Malaysia also aids Prime Minister
Muhyiddin Yassin, whose eight months in office have been beset
by coalition infighting and a leadership challenge from
opposition leader Anwar Ibrahim.
The budget included a record 322.5 billion ringgit ($79.53
billion) in spending next year to kick-start growth.
"We expect 2021 to be a better year for the
market...additional liquidity from the government stimulus
announced in Budget 2021 could help boost retail interest,"
analysts at trading firm CGS CIMB wrote in a note.
Malaysia's gains, however, trail behind several regional
peers.
Buoyed by this year's "stay-at-home" boom in tech spending,
South Korea and Taiwan's markets are up 26% and 19%,
respectively, since January, while those in India and China have
gained more than 10%.
That has led to concerns that speculative capital inflows
will cause unwanted gains for currencies across the region,
leading a number of central banks to intervene in markets or
take other steps to cap appreciation.
The Malaysian ringgit MYR= , Indonesian rupiah IDR= and
Thai baht THB=TH dipped against a globally weaker dollar in
afternoon trade, while the Philippine peso PHP= , Singapore
dollar SGD= and Indian rupee INR= edged higher.
Indonesian shares .JKSE , still down 3% on the year, gained
1.6% to their highest since Jan. 30, ahead of a central bank
meeting on Thursday that is expected to keep interest rates
unchanged.
South Korean shares .KS11 closed at a record high, as
investors cheered a pledge from the country's prime minister to
secure more hospital beds to cope with the worst outbreak since
the start of the pandemic. South Korean bonds faced an outflow of $823 million in
November, lagging its peers in Indonesia and Thailand, whose
bond markets lured inflows of $1.1 billion and $941 million,
respectively. ** Malaysia's 10-year benchmark yield is down 3.59 basis
points at 2.721%
** Top gainers on the Jakarta stock index .JKSE include
Zebra Nusantara Tbk PT ZBRA.JK up 34.67% at 101 rupiah,
Apexindo Pratama Duta Tbk PT APEX.JK up 25% at 530 rupiah
** In the Philippines, top index gainers are Megaworld Corp
MEG.PS up 3.02% at 4.1 peso, Universal Robina Corp URC.PS up
2.92% at 158.5 peso
Asia stock indexes and
currencies at 0733 GMT
COUNTRY FX RIC FX FX INDEX STOCK STOCKS
DAILY YTD % S YTD %
% DAILY
%
Japan JPY= +0.22 +5.01 .N225 0.26 13.11
China
($1 = 4.0550 ringgit)