* Trump back in the White House; dollar weakens * Rupiah hits strongest level since Sept 2 * Indonesia stocks hit two-week highs * Graphic: Foreign flows into Asian stocks tmsnrt.rs/3lKhL5I Oct 6 (Reuters) - Indonesia led gains among emerging markets in Asia on Tuesday after parliament moved quick to pass a contentious jobs bill that could cut onerous regulations and boost investment for its coronavirus-hit economy. Currency and stock markets across the region were broadly higher as U.S. President Donald Trump returned to the White House after three nights in the hospital with COVID-19. Markets are now betting that his release may help fast-track a U.S. stimulus package. Stocks in Jakarta climbed as much as 1.3% to their highest in more than two weeks, while the rupiah also rose around 1% to its strongest level in over a month, but eased slightly to a two-week high. OCBC analysts said the market sees the passing of the bill in Indonesia as a "positive development" given that it cuts back on a number of aspects of the previous bill, including mandatory severance benefits. "While the positive economic impact will likely only be felt over time, as it helps to improve Indonesia's competitiveness in attracting FDI (foreign direct investment), the passage shows that the government can still undertake significant reforms despite the challenging circumstances," said Wellian Wiranto, an economist at OCBC. Indonesia's parliament passed the controversial so-called "Job Creation" bill late on Monday, which has engendered thousands of workers to hit the streets in protest, at a critical time for the country. By Monday's close, Indonesian stocks had fallen over 7% since the end of August and the rupiah had eased more than 1% as Southeast Asia's largest economy struggled with the fallout of the coronavirus curbs and as some foreign investors shunned Indonesian assets due to concerns about central bank independence. Asia's emerging currencies rose, led by the Taiwanese dollar , as the greenback fell after Trump's release prompted investors to favour riskier assets once again. Markets in China remain closed until Thursday for a public holiday. Elsewhere in the region, Taiwan's stock market extended gains made on Monday when a private survey pointed to a strong recovery in its manufacturing sector in September, driven by solid export orders. However, Philippine shares fell 0.5% as inflation slowed to a four-month low in September in the latest sign of underlying weakness in the economy. Following the reading, the country's central bank said current monetary policy was sufficient to support the economy, having left rates unchanged last week, while businesses continue to struggle with restrictions in place in parts of the country. HIGHLIGHTS: ** Indonesian 10-year benchmark yields are down 2.3 basis points to 6.896% ** Global investors warn Indonesia that jobs bill puts forests at risk ** The top index losers in the Philippines are Puregold Price Club Inc, Aboitiz Equity Ventures Inc and Jollibee Foods Corp Asia stock indexes and currencies at 0657 GMT COUNTRY FX FX FX INDEX STOCKS STOCKS RIC DAILY % YTD % DAILY % YTD % Japan +0.04 +2.77 0.52 -0.94 China - +2.42 - 5.51 India -0.18 -2.78 0.78 -4.73 Indonesia +0.48 -5.71 1.04 -20.46 Malaysia -0.05 -1.52 0.30 -4.52 Philippines +0.03 +4.63 -0.48 -24.37 S.Korea +0.21 -0.40 0.34 7.65 Singapore +0.02 -1.12 0.61 -21.42 Taiwan +0.91 +4.69 1.24 5.89 Thailand +0.61 -4.20 0.98 -20.55 (Reporting by Nikhil Kurian Nainan in Bengaluru, additional reporting by Tom Westbrook in Singapore; Editing by Ana Nicolaci da Costa, Bernard Orr)
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