* Yuan, Shanghai benchmark jump as China reopens after holiday * Indian rupee rises after cenbank keeps interest rates unchanged * Philippine index drops, eyes worst week in five By Shruti Sonal Oct 9 - Asia's emerging currency markets were led higher on Friday by the yuan, which jumped more than 1% as Chinese markets reopened after a week-long break. Sentiment was further boosted by a survey showing a continued recovery in the world's second-largest economy. The yuan leapt 1.3% to a 17-month high against the dollar, catching up gains in its offshore counterpart over the long mainland holiday and as the U.S. dollar softened on wagers that more stimulus would be pushed through if Democrats sweep the Nov. 3 election. The Philippine peso and Thai baht edged 0.3% and 0.2% higher. An industry survey showed growth in China's services sector accelerated in September, suggesting its economic recovery is becoming more balanced and continues to gain momentum. "The risk sentiment is pretty positive today and Asia's emerging currencies are outperforming the greenback", said Margaret Yang, a Singapore-based Strategist at DailyFX. "But I don't know whether this rally could sustain, given the fact that we're heading towards the U.S. election and that there could be plenty of political uncertainties down the road", Yang added. Those uncertainties kept a check on stock markets in the region, which were largely muted in sharp comparison to Shanghai stocks playing catch-up with a near 2% jump. "The rest of Asia is definitely in wait-and-see mode", said Jeffrey Halley, Senior Market Analyst for Asia Pacific at OANDA, referring to U.S. elections and stimulus uncertainty. "Movement on the U..S stimulus package would be market positive, but markets outside the US won't react until they see ink on paper, or at least a joint statement from Mnuchin and Pelosi", added Halley. The Philippine benchmark dropped 0.6% and was headed for a weekly loss of more than 1%. The country reported its largest daily increase in COVID-19 deaths in more than three weeks on Thursday. There was also lingering concerns over a possible delay in the passing of an $89 billion budget vital to rebuilding its battered economy. India's rupee edged higher after the Reserve Bank of India (RBI) left its key interest rates unchanged as widely expected, while retaining an accomodative monetary policy stance to support the coronavirus-hit economy. RBI Governor Shaktikanta Das said the economy is seen contracting by 9.5% in the current fiscal year but will return to growth in the final January-march quarter, further lifting shares. HIGHLIGHTS: ** Philippines' Converge ICT Solutions Inc prices the country's second largest ever initial public offering ** Protests continue in the Indonesian capital against a polarising new jobs law ** Malaysia's 10-year benchmark yield is up 0.9 basis points at 2.695% Asia stock indexes and currencies at 0441 GMT COUNTRY FX RIC FX FX INDEX STOCKS STOCKS DAILY % YTD % DAILY % YTD % Japan +0.15 +2.61 -0.32 -0.36 China +1.28 +3.73 1.89 7.50 India +0.06 -2.47 0.10 -2.65 Indonesia +0.07 -5.42 -0.11 -20.09 Malaysia +0.12 -1.35 -0.04 -4.41 Philippines +0.29 +4.89 -0.46 -24.31 S.Korea - +0.27 - 8.84 Singapore +0.08 -0.92 0.00 -21.09 Taiwan - +3.94 - 7.42 Thailand +0.13 -3.92 -0.12 -19.40 (Reporting by Shruti Sonal in Bengaluru; Editing by Kim Coghill)
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