EMERGING MARKETS-South Korea shares jump after upbeat data, China down over 1%

* Chinese regulator studying measures to manage capital
inflows
* China annual parliament session on Friday
* S.Korea Feb factory activity expands at fastest pace in
nearly
11 years

March 2 (Reuters) - South Korean shares stood out from
Asia's emerging markets on Tuesday after its exports and factory
activity data reinforced hopes of an economic recovery, while
Chinese equities fell sharply over concerns around policy
tightening.
Stocks in the rest of the region edged higher, while
currencies stuck to tight ranges against a firmer dollar, at a
time when the U.S. economic recovery shows signs of strength
amid optimism about the passage of a COVID-19 relief package.
The benchmark index in Seoul .KS11 came off its highs by
the afternoon, having made a strong start after re-opening from
a public holiday on Monday.
Factory activity in South Korea expanded at its fastest pace
in nearly 11 years in February, while exports rose for a fourth
straight month, underpinning momentum for the trade-reliant
economy, Asia's fourth-largest. A spike in U.S. Treasury yields over the last month due to
higher inflation expectations and the possible end to cheap
money has unsettled investors at a delicate phase in the global
recovery.
"Sentiment may remain choppy as the market continues to
digest the higher U.S. Treasury yield environment," analysts at
OCBC said.
"Nevertheless, given the underlying vaccination progress and
monetary support, the bias remains for the risk-on default to
persist in the longer-term."
Malaysian shares .KLSE , which were dragged lower on Monday
by glove makers, rose 0.4%, while in Mumbai .NSEI and Manila
.PSI , they rose more than half a percent each.
In China, blue-chip stocks .CSI300 fell as much as 2.1%,
while Shanghai' Composite index .SSEC was down 1.3%. The yuan
CNY=CFXS was marginally lower.
The country's top banking regulator said it was looking into
ways to manage capital inflows to prevent risk of bubbles,
noting the high levels markets in Europe and the United States
are trading at. Alterations to the policy of China, the world's
second-largest economy, will be known on Friday when it begins
an annual session of its parliament. It is expected to chart a
course for economic recovery and unveil a five-year plan.
HIGHLIGHTS:
** Indonesian 10-year benchmark yields unchanged at 6.59%
** Philippines reports first cases of COVID-19 South African
variant
Asia stock indexes and currencies at 0637 GMT
COUNTRY FX RIC FX FX INDEX STOCKS STOCKS
DAILY % YTD % DAILY % YTD %
Japan JPY= -0.07 -3.35 .N225 -0.86 7.16
China CNY=CFXS -0.07 +0.87 .SSEC -1.29 0.93
India INR=IN +0.27 -0.37 .NSEI 0.59 6.20
Indonesia IDR= -0.14 -1.61 .JKSE 0.08 6.10
Malaysia MYR= +0.05 -0.81 .KLSE 0.40 -3.31
Philippines PHP= +0.02 -1.09 .PSI 0.68 -3.08
S.Korea KRW=KFTC -0.04 -3.36 .KS11 1.03 5.93
Singapore SGD= -0.31 -0.81 .STI 0.41 4.97
Taiwan TWD=TP +1.54 +2.17 .TWII -0.04 8.24
Thailand THB=TH -0.26 -1.19 .SETI 0.34 3.91