EMERGING MARKETS-Asia FX, stocks rise as Biden leads U.S. election race; rupiah firms over 1%

    * Graphic: World FX rates
    * Graphic: Foreign flows into Asian stocks
    * Indonesia 10-year bond prices rise most since March 20
    * Malaysia budget due at 0800 GMT
    * Most stock indexes headed for weekly gains

    By Anushka Trivedi
    Nov 6 (Reuters) - Indonesia's rupiah firmed more than 1% on Friday and was
set to mark its best week since June, while other emerging Asian currencies and
stock markets also gained as Democrat Joe Biden edged closer to victory in the
U.S. presidential election. 
    The rupiah hit a four-month high against the dollar and was set to
advance around 2.6% for the week, as Thursday's drop in Treasury yields to near
three-week lows encouraged investors to push funds into Indonesia's
high-yielding debt.
    Expectations of a divided U.S. Congress that will struggle to pass major
fiscal stimulus has stoked expectations this week that the Federal Reserve will
have to continue to pump more cash into the economy through bond-buying and
other emergency measures.
    The more quantitative easing the Fed does, the more funds are likely to
trickle down to emerging markets, particularly those with attractive local bond
    Indonesian 10-year benchmark yields were down 25.5 basis points
at 6.354%, the biggest fall since March 20. Bond prices rise as yields fall. 
    "Republican control of the Senate suggests that no major fiscal stimulus is
in the offing," said Wei Liang Chang, a macro strategist at DBS bank, Singapore.
    "This has also led to a drop in U.S. Treasury yields, which raises the
attractiveness of the higher-yielding rupiah."
    Investors have also bought the yuan and other China-linked assets over the
past two days on the view that a Biden presidency will mean a less hawkish trade
and foreign policy. 
    The yuan dipped but was still set to mark its best week in a
month, while Taiwan's dollar and the Thai baht jumped 1.3% and
0.6%, respectively.
    After investors dumped global equities in October ahead of the election,
this week has seen most stock markets rise.
    Malaysian shares and the ringgit were steady ahead of a
2021 budget announcement, seen as crucial for Prime Minister Muhyiddin Yassin as
he faces threats to his government.
    U.S. bank Citi said it expected the budget to include a 28 billion ringgit 
($6.76 billion) provision for COVID-19 related matters and target boosting
revenue by introducing new taxes.
     Trade-reliant Malaysia is in dire need of stimulus as the pandemic forced
its economy into its first contraction in over a decade in the second quarter.
    ** Thailand's 10-year government bond yields are down 0.5 basis
points at 1.33%
    ** A four-day rally in the Singapore's benchmark came to a halt as
shares fell 0.5%
    ** Top gainers on FTSE Bursa Malaysia Kl Index include Axiata Group
Bhd up 2.62% and Petronas Dagangan Bhd up 2.54% 

 Asia stock indexes and currencies                                      
 at 0606 GMT                                                      
                                                         DAILY %   YTD %
 Japan                         -0.09     +4.88              1.01    2.93
 China                         -0.27     +5.06             -0.73    8.06
 India                         +0.49     -3.58              0.48    0.08
 Indonesia                     +1.27     -2.18              0.54  -16.04
 Malaysia                      +0.10     -1.21              0.40   -5.12
 Philippines                   +0.11     +5.03              0.62  -14.45
 S.Korea                       +0.45     +2.96              0.00    9.83
 Singapore                     -0.01     -0.39             -0.45  -20.04
 Taiwan                        +1.26     +5.58              0.42    8.14
 Thailand                      +0.62     -2.41             -0.36  -20.26

($1 = 4.1390 ringgit)

 (Editing by Patrick Graham and Rashmi Aich)