(Corrects Reuters Instrument Code for Malaysia stock exchange in paragraph 4) * Graphic: World FX rates tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks tmsnrt.rs/3lKhL5I * Malaysian stocks up 0.6%, ringgit holds steady * Thai assets may be pressured in near term - Citi * Philippine stocks slide 1.7% after six-day winning streak By Rashmi Ashok Oct 27 (Reuters) - Malaysian shares rose on Tuesday as political tensions eased after the largest party in the ruling coalition declared its support for the prime minister, providing some respite for the premier, who has faced calls to resign. Most other Asian stock indices were firmly in the red, as soaring global coronavirus cases threatened to derail a quick economic recovery, even as uncertainty ramped up with just days left for the U.S. presidential election. The United Malays National Organisation (UMNO) party pledged to back Prime Minister Muhyiddin Yassin, tempering the political uncertainty stemming from calls for his resignation after the king rejected his request for emergency rule on Sunday. The benchmark equity index rose 0.6%, while the ringgit held steady at 4.163 against the dollar after three sessions of losses. "The king's advice for members of parliament to not continue with any irresponsible action that could undermine the stability of the current administration could quiet political noise in the near term," analysts at CGS CIMB wrote in a note. They added that averting an emergency decree was a favourable outcome for equity markets but cautioned that it may not be enough to reverse foreign investors from selling off their holdings in the near term. Thai markets edged lower as protests demanding reforms of the powerful monarchy and calls for the prime minister to resign continued undeterred. "The most contentious protesters' demand of reform to monarchy has a very high hurdle and this may keep the protests ongoing for now. This shall keep the overall sentiment around domestic Thai assets and the baht weak," Citi analysts noted. Philippine stocks slid as much as 1.7% and were set for their biggest drop since August, as investors sold off shares after a massive six-session run of gains of 10%. Asian currency markets bore a quiet look, with investors shying away from big bets ahead of the U.S. election. The Taiwan dollar was the sole exception, continuing its bullish run and adding more than 1%. Analysts at Citi wrote that cautious risk appetite ahead of U.S. elections may also cause further unwinding of bullish fast money positioning in Asian FX, mainly in the yuan, the South Korean won and the Singapore dollar. "But medium term prospects for Asia FX remain supportive, in our view, with the dollar likely to weaken over the medium term, stronger than expected recovery of the region and control over the spread of COVID-19," the analysts added. HIGHLIGHTS ** In the Philippines, top index losers are LT Group Inc down 3.81% and BDO Unibank Inc down 2.99% ** Top gainers on FTSE Bursa Malaysia Kl Index include Hartalega Holdings Bhd up 3.85% and Axiata Group Bhd up 2.52% ** Indonesian 10-year benchmark yields are up 0.8 basis points at 6.62% while 3-year benchmark yields are down 0.5 basis points at 5.224% Asia stock indexes and currencies at 0451 GMT COUNTRY FX RIC FX FX INDEX STOCK STOCK DAILY YTD % S S YTD % DAILY % % Japan +0.07 +3.68 -0.34 -1.02 China <CNY=CFX +0.13 +3.88 -0.37 6.19 S> India -0.04 -3.38 0.22 -3.08 Indones -0.14 -5.26 -0.12 -18.4 ia 4 Malaysi -0.02 -1.80 0.37 -5.58 a Philipp -0.10 +4.63 -0.72 -17.5 ines 4 S.Korea <KRW=KFT +0.04 +2.58 -0.54 6.08 C> Singapo +0.20 -1.04 -0.65 -22.2 re 1 Taiwan +1.05 +5.26 -0.37 7.21 Thailan +0.06 -4.29 -0.46 -23.8 d 9 (Reporting by Rashmi Ashok in Bengaluru. Editing by Gerry Doyle)
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