EMERGING MARKETS-Philippines leads modest Asia stock gains, Taiwan dollar up again

* Taiwan dollar closing in on 3rd day of gains
* Stronger Taiwanese dollar can make exports less
competitive
* Investors eye U.S. stimulus details
* Philippines approves Pfizer COVID-19 vaccine

By Nikhil Nainan
Jan 14 (Reuters) - The Philippines led modest gains among
Asia's emerging stock markets on Thursday, as investors awaited
U.S. stimulus plans while Taiwan's dollar extended gains.
The region's equity markets rose as much as half a percent,
with Manila .PSI climbing 0.8%, ahead of details around
President-elect Joe Biden's pandemic relief package due later on
Thursday. Biden had promised "trillions" of dollars in aid and
CNN reported a package of $2 trillion was being considered.

That prospect and the U.S. Federal Reserve's pledge to keep
buying bonds lifted Treasury yields once again, propping up the
dollar and suppressing many of Asia's currencies, that were
largely flat to lower.
Mizuho Bank said markets are "likely to be seduced by
stimulus" ahead of Biden's fiscal plans, which could help spur a
recovery in the world's largest economy and in turn
trade-reliant Asia.
Taiwan's dollar TWD=TP stood out among currencies, gaining
1.7%. The central bank had called on banks dealing in foreign
exchange to exercise restraint as it seeks to rein in the
soaring local dollar, which has gained nearly 2% this year.
But the central bank finds itself in a tricky position of
not wanting to appear to intervene too heavily in the currency
market and being labelled a currency manipulator by the United
States. Taiwan was added to the Treasury department's watchlist
last month. A soaring currency does not bode well for Taiwan's
manufacturing economy, which relies heavily on electronics
exports. The Taiwan dollar gained nearly 6% on the greenback in
2020.
South Korea's won KRW=KFTC dipped 0.5% ahead of Friday's
central bank policy meeting where interest rates KROCRT=ECI
are expected to remain unchanged at 0.5%. Robert Carnell, ING's Asia-Pacfic head of research, said
there may be a case for easing considering weak jobs data this
week but argues that he doesn't feel the argument is compelling
enough.
"The won may have a small rally on the day in the event that
the BoK does nothing as expected. Further moves in the won will
be dominated by U.S. dollar trends."
Elsewhere, Malaysian stocks .KLSE edged higher and the
ringgit MYR= advanced 0.1%.
The Philippines authorised for emergency use the COVID-19
vaccine developed by Pfizer PFE.N and BioNTech 22UAy.DE , the
first to be approved in the country. ** Indonesian 10-year benchmark yields are up 1.099 basis
points at 6.229%
** Globe Telecom Inc GLO.PS up nearly 4%, while JG Summit
Holdings Inc JGS.PS and Security Bank Corp SECB.PS gain over
3%
** Chinese exports grow more than expected in Dec, imports
quicken ** USD/TWD-Touch higher as Taiwan c.bank attempts to stem
drop
Asia stock indexes and currencies at 0355 GMT
COUNTRY FX FX FX INDEX STOCKS STOCKS
RIC DAILY % YTD % DAILY % YTD %
Japan JPY= -0.18 -0.77 .N225 1.66 5.41
China CNY=CFXS -0.04 +0.89 .SSEC -0.29 3.32
India INR=IN +0.00 -0.11 .NSEI -0.10 4.06
Indonesia IDR= -0.11 -0.21 .JKSE 0.16 7.80
Malaysia MYR= +0.05 -0.50 .KLSE 0.34 0.92
Philippines PHP= +0.02 -0.10 .PSI 0.75 2.20
S.Korea KRW=KFTC -0.52 -1.33 .KS11 0.08 9.65
Singapore SGD= -0.02 -0.44 .STI 0.47 5.19
Taiwan TWD=TP +1.66 +1.80 .TWII -0.42 6.60
Thailand THB=TH +0.07 -0.23 .SETI -0.12 6.63