* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Chinese, Indian shares gain the most
* Thai stocks hit two-week low
* Indonesia, South Korea shut for holiday
By Shriya Ramakrishnan
Aug 17 (Reuters) - Philippine shares reversed early losses
on Monday, but investors remained cautious ahead of a decision
on whether to ease quarantine restrictions and over concerns
that a substantial pick up in economic activity will take time.
Manila's benchmark stock index .PSI closed 0.1% lower
after falling as much as 1.1% earlier in the day, as investors
picked up beaten down blue-chip real estate stocks while the
peso PHP= gained 0.2% against a broadly weaker U.S. dollar.
Philippine President Rodrigo Duterte is set to announce on
Monday his decision whether to extend or ease strict quarantine
measures that were reinstated in and around the capital Manila
in mid-August to stem the rise in new coronavirus cases.
"Investors are still wary of the efficiency of the
government's response to the COVID-19 pandemic," said Jennifer
Lomboy, a fund manager at First Metro Asset Management.
"Daily cases are still elevated but economic activities need
to resume soon as strict lockdowns have heavily impacted
household income and businesses' profitability."
In Thailand, the baht THB=TH weakened 0.2% and shares
.SETI fell more than half a percent, as a double whammy of
political protests and data showing the economy shrank by 12.2%
in the second quarter added to the government's headaches.
Chinese shares .SSEC stood out with gains of over 2%, as
the country's central bank provided more medium-term loans to
the financial system and as shares of securities brokers rose in
anticipation of reforms and consolidation.
Indian shares .NSEI were also among the top performers, as
markets cheered Prime Minister Narendra Modi's assurance on mass
production of COVID-19 vaccines and more infrastructure
spending.
Investors will also focus on central bank meetings this week
in Indonesia and the Philippines.
A majority of economists polled by Reuters expect Bank
Indonesia to keep its main policy rate unchanged when it
concludes its two-day policy meeting on Wednesday, after cutting
it four times so far this year. Analysts also expect the Philippine central bank to keep
rates steady especially after Governor Benjamin Diokno signalled
key rates could remain unchanged for the rest of the year.
Financial markets in South Korea and Indonesia were closed
for holidays.
HIGHLIGHTS:
** Top losers on Thailand's SETI .SETI include Thai-German
Products PCL TGPRO.BK down 14.29% at 0.06 baht; Thai Film
Industries PCL TFI.BK down 13.33% at 0.13 baht
** In the Philippines, top index gainers are Alliance Global
Group Inc AGI.PS up 6.47% at 6.25 peso, GT Capital Holdings
Inc GTCAP.PS up 5.74% at 424 peso, JG Summit Holdings Inc
JGS.PS up 4.4% at 64 peso
** Thailand's 10-year government bond yields are down 3
basis points at 1.3%
Asia stock indexes and
currencies at 0749 GMT
COUNTRY FX RIC FX FX YTD INDEX STOCKS STOCKS
DAILY % % DAILY % YTD %
Japan JPY= +0.10 +2.00 .N225 -0.83 -2.37
China
($1 = 48.5900 Philippine pesos)