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

* Taiwan dollar closes around 23-year highs
* Investors eye U.S. stimulus details
* Philippines approves Pfizer COVID-19 vaccine

By Nikhil Nainan
Jan 14 (Reuters) - Singapore and the Philippines led modest
gains among Asian stock markets on Thursday, as investors
focused on U.S. stimulus plans, while Taiwan's dollar extended
gains to the growing worry of the country's central bank.
The region's equity markets rose by no more than half a
percent, barring Singapore .STI and Manila .PSI , 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 that 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% to around 23-year highs. 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 also dipped 0.3% 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 (Bank of Korea) does nothing as expected. Further moves
in the won will be dominated by U.S. dollar trends."
A Reuters poll showed bullish bets on the won and Taiwan
dollar nearly halved from last month as U.S. yields shot up
prompting investors to reevaluate emerging market
debt. Philippine stocks climbed as much as 0.9%, while Singapore
hovered around 10-month highs. The Philippines authorised the
emergency use the COVID-19 vaccine developed by Pfizer PFE.N
and BioNTech 22UAy.DE on Thursday, the first to be approved in
the country. ** Globe Telecom Inc GLO.PS up over 4%, while JG Summit
Holdings Inc JGS.PS and Security Bank Corp SECB.PS gain
around 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 0648 GMT
COUNTRY FX FX FX INDEX STOCKS STOCKS
RIC DAILY % YTD % DAILY % YTD %
Japan JPY= -0.15 -0.74 .N225 0.85 4.57
China CNY=CFXS 0.00 +0.93 .SSEC -0.87 2.71
India INR=IN +0.09 -0.02 .NSEI -0.04 4.13
Indonesia IDR= -0.04 -0.14 .JKSE 0.30 7.95
Malaysia MYR= 0.00 -0.54 .KLSE -0.04 0.55
Philippines PHP= +0.02 -0.10 .PSI 0.42 1.87
S.Korea KRW=KFTC -0.26 -1.07 .KS11 0.05 9.62
Singapore SGD= -0.02 -0.44 .STI 0.57 5.30
Taiwan TWD=TP +1.71 +1.85 .TWII -0.40 6.62
Thailand THB=TH +0.13 -0.17 .SETI -0.43 6.30