* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I
* Ringgit dips 0.2%, Malaysian stocks off nearly 0.8%
* Emergency request rejection spares economic crisis -
Mizuho
* Taiwan dollar at two-week high, up 1.1%
Oct 26 (Reuters) - Malaysian stocks stumbled on Monday as
political uncertainty in the Southeast Asian nation grew after
the king rejected a request by the prime minister to declare a
state of emergency in response to the coronavirus crisis.
Broader Asian stocks and currencies were subdued, as a surge
in coronavirus cases in the United States and Europe threatened
hopes for a global economic recovery, adding to uncertainty
posed by the looming U.S. presidential election.
Malaysian King Al-Sultan Abdullah's rejection on Sunday of
the request for the emergency on Sunday is a major setback for
Prime Minister Muhyiddin Yassin, who is facing a leadership
challenge from an opposition leader and infighting within his
ruling coalition. The king's rejection has arguably spared the country a
deeper political and consequent economic crisis, analysts at
Mizuho wrote, noting that the emergency request could be
construed as a backdoor for the prime minister to retain
control.
"The real danger is that a state of emergency, if construed
as an undemocratic tool to out-manoeuvre, will inadvertently
exacerbate the PM's political woes, potentially plunging
Malaysia into deeper political uncertainty."
The ringgit MYR= shed more than 0.2% against the dollar to
stand at a near four-week low, extending losses of around 0.3%
sustained on Friday after talk of the state of emergency request
first surfaced.
The Malaysian stock index .KLSE slipped 0.8% to its lowest
since Sept. 11, with glove maker Top Glove Corp TPGC.KL the
biggest loser, down 2.5%.
Malaysia has seen a resurgence in coronavirus cases
recently, just as businesses and workers try to recover from the
economic blow of pandemic-led lockdowns.
Thai shares .SETI struggled to hold on to gains and the
baht THB=TH dipped slightly after a holiday-extended weekend,
as protests demanding the resignation of Prime Minister Prayuth
Chan-ocha continued. Shares had recovered slightly on Thursday after an emergency
decree aimed at ending months of protests against Chan-ocha's
government and the monarchy was revoked, after it brought tens
of thousands of people on to Bangkok's streets. 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.
HIGHLIGHTS
** Top gainers on the Jakarta stock index .JKSE include
Provident Agro Tbk PT PALM.JK , up 21.94%, and Sky Energy
Indonesia Tbk PT JSKY.JK , up 20.69%
** In the Philippines, top index gainers were DMCI Holdings
Inc DMC.PS , up 3.29%, and Puregold Price Club Inc PGOLD.PS ,
up 2.82%
** Indonesian 10-year benchmark yields fell 1.8 basis points
to 6.6%, while 3-year benchmark yields eased 3.2 basis points
to 5.23%
Asia stock indexes and
currencies at 0448 GMT
COUNTRY FX RIC FX FX INDEX STOCK STOCK
DAILY YTD % S S YTD
% DAILY %
%
Japan JPY= -0.21 +3.53 .N225 -0.15 -0.74
China