EMERGING MARKETS-Malaysian stocks, ringgit slip as calls for PM to resign grow

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I
* Malaysian ringgit at near four-week low
* Thai stocks subdued as protests continue

Oct 26 (Reuters) - Malaysian stocks slipped on Monday as the
Southeast Asian nation's prime minister faced political
uncertainty after his request to declare a state of emergency
was rejected by the king, with other markets in the region also
trading lower.
Broader Asian stock markets dropped after a surge in
COVID-19 cases in the United States and Europe rattled hopes of
a global economic recovery, building on uncertainty posed by the
looming U.S. presidential election. Doubts swirled over the support Malaysian Prime Minister
Muhyiddin Yassin commands, particularly after the king's
rejection. Yassin is facing a leadership challenge from an opposition
leader and infighting within his ruling coalition, and critics
have accused him of using the request for emergency rule as a
pretext to suspend parliament and avoid a test of his razor-thin
parliamentary majority.
By midday, the Malaysian benchmark stock index .KLSE was
down 0.7% and the ringgit MYR= was perched at a four-week low,
down 0.2% at 4.164 against the dollar.
"Struggling to recover from the pandemic-triggered recession
right on the heels of weathering U.S.-China trade war ripples,
the last thing ASEAN economies need is a political crisis,"
analysts at Mizuho said, referring to the political situation in
Malaysia and Thailand.
Thailand's biggest opposition party called on Monday for
Prime Minister Prayuth Chan-ocha to resign, as the parliament
opened a special session called by the former junta leader to
discuss months of protests. Thai equities .SETI pulled back slightly to 1,213 after
see-sawing for most of the session and the baht THB=TH traded
slightly lower.
Analysts at Phillip Securities noted that the focus remained
on the special parliamentary session, with the Thai equity
market set to hover between 1,200 and 1,220 until the crisis was
resolved.
Taiwan's dollar TWD=TP was among the most sought-after
currencies in the session, gaining more than 1.1% to touch a
two-week high.
The currency is the region's top performer so far this year
with a 5.2% gain, as the work-from-home shift fuelled demand for
the country's key chip and semiconductor exports, offering a
buffer to the economic blow from the pandemic.
Data showing a surge in Singapore's factory output in
September failed to offset the subdued broader mood, with shares
.STI barely budging on the numbers. The stock index fell 0.3%
and the Singapore dollar SGD= also slightly weakened.
HIGHLIGHTS
** Top gainers on the Jakarta stock index .JKSE include
Sky Energy Indonesia Tbk PT JSKY.JK , up 24.14%, and Provident
Agro Tbk PT PALM.JK , up 22.58%.
** Top losers on Thailand's SETI .SETI include AEC
Securities PCL AEC.BK , down 16.67%, and Thailand Hospitality
Property Fund TLHPFu.BK , down 7.3%.
** Singapore's 10-year benchmark yield was down 2.3 basis
points at 0.826%​​, while the 5-year benchmark yield traded 1.8
basis points lower at 0.451%​​.

Asia stock indexes and
currencies at 0659 GMT
COUNTRY FX RIC FX FX INDEX STOCK STOCK
DAILY YTD % S S YTD
% DAILY %
%
Japan JPY= -0.21 +3.53 .N225 -0.09 -0.69
China .SSEC -0.87 6.54
S>
India INR=IN -0.16 -3.20 .NSEI -0.91 -2.85
Indones IDR= +0.00 -5.26 .JKSE 0.76 -18.2
ia 3
Malaysi MYR= -0.19 -1.78 .KLSE -0.64 -6.53
a
Philipp PHP= +0.05 +4.70 .PSI 0.11 -16.9
ines 4
S.Korea .KS11 -0.72 6.65
C>
Singapo SGD= -0.13 -1.08 .STI -0.34 -21.5
re 4
Taiwan TWD=TP +1.09 +5.24 .TWII 0.08 7.60
Thailan THB=TH -0.06 -4.41 .SETI -0.04 -23.2
d 1