* Malaysia, Singapore, Thailand, Indonesia set for weekly gains * Rupiah up over 3% over 2 weeks on Biden's win, vaccine news * Shanghai stocks fall 1% on U.S. investment ban Nov 13 (Reuters) - Most emerging stocks in Asia fell on Friday as worries over surging COVID-19 cases across the globe dampened hopes for a near-term effective vaccine, with Shanghai leading losses after the United States banned investments in some Chinese firms. Optimism over Pfizer Inc's promising vaccine trial data and Joe Biden's victory in the U.S. presidential election quickly faded this week as Europe and parts of America imposed fresh curbs to tackle a resurgence in new coronavirus cases. "Simply put, the imminence of virus devastation is more daunting than the promise of the vaccine pipeline," Mizuho Bank said in a note. While the pandemic has been largely brought under control in Asia, its tourism- and trade-reliant economies would need a sustained recovery from the rest of the world to rebound to pre-COVID-19 levels. The Shanghai composite index fell 1%, after the Trump administration on Thursday prohibited U.S. investments in Chinese firms that Washington says are owned or controlled by the Chinese military. Currencies in the region also weakened with Indonesia's rupiah, which has benefited from a surge in bond inflows lately due to improving risk appetite, fell 0.2%. Since the start of last week, the rupiah has climbed over 3% on the dollar as investors ploughed into its high-yielding bonds. Bank Indonesia will meet in the middle of next week to decide rates. In local economic news, Malaysia's economy shrank less than expected in the third quarter as business activity resumed, helping stocks pare much of their losses to trade 0.3% lower. The ringgit remained little changed. Malaysia's central bank governor Nor Shamsiah Mohd Yunus said growth into 2021 will be supported by a pick-up in global demand and as domestic activity recovers. Equities in Kuala Lumpur and Singapore are set to gain over 4% over the week, while Bangkok is slated for a 7.2% rise. U.S. Federal Reserve Chair Jerome Powell said while the vaccine development news was welcome, near-term economic risks remain, while European officials warned that measures to control the spread were still required. HIGHLIGHTS: ** Indonesian 3-year benchmark yields down 4.1 basis points to 4.918% ** Malaysia's 10-year benchmark yield down 2.6 basis points to 2.666% ** Singapore Airlines marks worst day in over 3 months after debt raise ** Trump bans U.S. investments in firms linked to Chinese military Asia stock indexes and currencies at 0650 GMT COUNTRY FX FX FX INDEX STOCKS STOCKS RIC DAILY % YTD % DAILY % YTD % Japan +0.12 +3.45 -0.53 7.31 China -0.18 +5.13 -1.02 8.34 India +0.00 -4.38 -0.02 4.27 Indonesia -0.21 -2.05 0.02 -13.34 Malaysia -0.02 -0.97 -0.30 -0.17 Philippines +0.38 +4.92 -0.77 -10.82 S.Korea -0.07 +3.66 0.74 13.48 Singapore -0.01 -0.36 -0.20 -16.02 Taiwan +1.22 +5.59 0.39 10.64 Thailand +0.03 -1.03 1.03 -14.54 (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Ramakrishnan M.)
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