EMERGING MARKETS-Philippine shares falter as COVID-19 cases surge

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Malaysian stocks gain over 1% as Top Glove rallies
* Philippine stocks set for weekly decline of over 2%
* Indonesian rupiah hits near two-month low

By Shriya Ramakrishnan
July 17 (Reuters) - Philippine shares were set for a second
straight weekly drop on Friday following a surge in COVID-19
cases in the country, while the Indonesian rupiah weakened as
uncertainty over future monetary policy dented investor
sentiment.
After a bout of bargain buying on Thursday, the Manila
benchmark index .PSI resumed declines to fall nearly 1%, as
the country reported its biggest daily spike in coronavirus
infections in more than a week. President Rodrigo Duterte on Wednesday retained partial
quarantine measures in the capital of Manila for two weeks until
the end of July, but warned that stricter curbs would be
reinstated if the rise in new cases and deaths did not slow.
Foreign investors dumped Philippine shares worth $64.7
million as of Thursday, after a $114.9 million sell-off last
week, according to exchange data.
Among Asian currencies, the rupiah IDR= was the worst hit,
falling to a near two-month low, a day after the central bank
cut interest rates for the fourth time this year.
Shares in Jakarta .JKSE were down about 0.3%.
After reducing its benchmark interest rate to 4%, Bank
Indonesia Governor Perry Warjiyo said there would be no
inflationary impact from a bond-buying scheme announced earlier
this month, while stressing the importance of both fiscal and
monetary levers to revive growth. Some analysts said that pointed to more cuts in rates.
"While the burden sharing scheme could benefit Indonesia's
economy, there is fear that the central government wouldn't be
able to realise its planned spending," said Anthony Kevin, an
economist at Mirae Asset Sekuritas Indonesia.
"This is why market participants were also looking for clues
regarding the possibility of another rate cut."
Malaysian stocks .KLSE were the top performers, advancing
over 1%, driven primarily by gains in Top Glove Corp TPGC.KL ,
the world's largest medical glove maker, which rose 16%.
U.S. Customs on Wednesday placed a detention order on
imports of products made by the company's units, but the company
said it hoped to resolve the issue in two weeks and the surge in
global demand meant it would be able to sell its product
elsewhere. Top gainers on FTSE Bursa Malaysia Kl Index .KLSE
include Top Glove Corporation Bhd TPGC.KL up 15.53% at 22.76
ringgit, Hartalega Holdings Bhd HTHB.KL up 5.9% at 16.52
ringgit, Hap Seng Consolidated Bhd HAPS.KL up​ 2.32% at 8.83
ringgit
** In the Philippines, top index decliners are SM Prime
Holdings Inc SMPH.PS down 4.59% at 31.2 peso; Ayala Land Inc
ALI.PS down 3.65% at 31.7 peso; and Metro Pacific Investments
Corp MPI.PS down 2.1% at 3.26 peso
** Indonesian 10-year benchmark yields are up 1.4 basis
points at 7.057%
Asia stock indexes and
currencies at 0659 GMT
COUNTRY FX RIC FX FX YTD INDEX STOCKS STOCKS
DAILY % % DAILY YTD %
%
Japan JPY= +0.07 +1.32 .N225 -0.32 -4.06
China