* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I
* Indonesian shares hit over 10-month high
* S. Korean shares set to snap two-day losing streak
* Malaysian stocks poised for second day of gains
By Shriya Ramakrishnan
Dec 16 (Reuters) - Malaysian shares extended gains on
Wednesday after the country's parliament approved a budget aimed
at spurring economic activity, while Asian currencies traded in
a narrow range as investors awaited cues from the U.S. Federal
Reserve.
Regional share markets rose in line with their broader Asian
peers, as continued progress on the roll-out of COVID-19
vaccines and growing prospects of more U.S. fiscal stimulus
lifted risk sentiment.
Malaysian stocks .KLSE jumped as much as 1.3%, with gains
on the benchmark index dominated by shares of financial firms
and glove makers.
Lawmakers in the country approved the government's 2021
budget, which includes a record 322.5 billion ringgit ($79.65
billion) in spending next year, as it seeks to lift activity in
an economy badly hit by the coronavirus pandemic.
"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 in the
market and cultivate stronger animal spirits," analysts at
trading firm CGS CIMB wrote in a note.
The passage of the budget could also signal a firmer footing
for Prime Minister Muhyiddin Yassin, whose eight months in
office have been beset by infighting in his ruling coalition and
a leadership challenge from opposition leader Anwar Ibrahim.
Indonesian shares .JKSE climbed 1.5% to hit their highest
level since Jan. 30, while South Korea's KOSPI .KS11 was set
to snap a two-day losing streak.
Sentiment in South Korea also improved as the country's
prime minister pledged to secure more hospital beds to handle a
record surge in COVID-19 cases and blunt a corresponding spike
in deaths. In currency markets, investors were focused on the outcome
of the U.S. central bank's final policy meeting of the year,
where it expected to keep its overnight interest rate pinned
near zero and to signal it will stay there for years to come.
Analysts said the decision could further boost investors'
confidence for risk-taking. USD/
The dollar index, which measures the greenback against a
basket of currencies, hovered near 2-1/2 year lows. The
Philippine peso PHP= , S. Korean won KRW=KFTC and Malaysian
ringgit MYR= edged higher.
The Indonesian rupiah IDR= and the Philippine peso PHP=
were largely steady ahead of their respective central bank
meetings on Thursday.
Analysts polled by Reuters expect Bank Indonesia to keep its
key interest rate unchanged at a record low of 3.75%, having cut
rates five times this year. ** Malaysia's 10-year benchmark yield is down 2.19 basis
points at 2.735%
** Top gainers on the Jakarta stock index .JKSE include
Zebra Nusantara Tbk PT ZBRA.JK , up 33.33% at 100 rupiah,
Apexindo Pratama Duta Tbk PT APEX.JK up 25% at 530 rupiah
** Top gainers on FTSE Bursa Malaysia Kl Index .KLSE
include Hartalega Holdings Bhd HTHB.KL up 5.34% at 12.62
ringgit, Top Glove Corporation Bhd TPGC.KL up 5.3% at 6.75
ringgit, Telekom Malaysia Bhd TLMM.KL up 3.21% at 5.47
ringgit
Asia stock indexes and
currencies at 0434 GMT
COUNTRY FX RIC FX FX INDEX STOCK STOCKS
DAILY YTD % S YTD %
% DAILY
%
Japan JPY= +0.15 +4.94 .N225 0.12 12.95
China CNY=CFXS -0.04 +6.44 .SSEC 0.18 10.59
India INR=IN +0.19 -2.88 .NSEI 0.67 12.25
Indonesi IDR= -0.07 -1.56 .JKSE 1.47 -3.19
a
Malaysia MYR= +0.05 +0.96 .KLSE 0.72 6.12
Philippi PHP= +0.05 +5.40 .PSI 0.22 -7.32
nes
S.Korea KRW=KFTC +0.11 +5.89 .KS11 0.48 26.04
Singapor SGD= +0.04 +0.96 .STI 0.40 -11.01
e
Taiwan TWD=TP +1.12 +6.97 .TWII 1.59 19.12
Thailand THB=TH -0.07 -0.50 .SETI 0.29 -6.23
($1 = 4.0490 ringgit)