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EMERGING MARKETS-Malaysian shares recover on easing political tensions; Philippines fall

    * Graphic: World FX rates tmsnrt.rs/2egbfVh
    * Graphic: Foreign flows into Asian stocks tmsnrt.rs/3lKhL5I
    * Malaysian stocks end higher as PM receives backing
    * Philippines cenbank says no rate cuts on the cards in 2020
    * Data boosts yuan, Korean won

    By Rashmi Ashok
    June 8 (Reuters) - Malaysian shares rose on Tuesday as
political tensions eased after the largest party in the ruling
coalition said it would back the prime minister, providing some
respite for the premier, who has faced calls to resign.
    Most other Asian stock indices edged lower, as a spike in
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 pledged to support
Prime Minister Muhyiddin Yassin, tempering the political
uncertainty stemming from calls for his resignation after the
king rejected his request for emergency rule.
    Malaysia's benchmark stock index rose 0.5%, while
the ringgit held steady 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.
    Philippine stocks ended 1.2% lower, notching their
biggest drop since Sept. 11, as investors booked gains after a
massive six-session run of gains of 10%. 
    The peso strengthened during the session after the
central bank governor said there was no immediate need to ease
monetary policy further, given the slew of indicators that point
towards economic recovery.
    While inflation afforded the room to ease monetary policy,
Bangko Sentral ng Pilipinas Governor Benjamin Diokno said in an
interview the central bank "right now is not inclined to do
that".
    Ruben Carlo O. Asuncion, chief economist at Union Bank of
the Philippines, said while the central bank's policy direction
was largely the same as in the recent past, claims of economic
recovery gaining momentum through sequentially improving
economic indicators was gaining traction.
    "The only flag that I may have to raise right now is a
possible resurgence of the virus down the road," he said, citing
a resurgence of cases in several developed nations.
    Philippine shares have seen increased foreign inflows
recently and the peso has held its position as the second-best
performer among Asian currencies this year, as coronavirus
infections remain under control and the economy reopens.
    The yuan gained after data showed profit at
China's industrial firms rose for a fifth straight month in
September, while a return to economic growth in South Korea in
the third quarter boosted the won.

    
    HIGHLIGHTS
    ** Indonesian 10-year benchmark yields are up 0.2 basis
points at 6.613% while 3-year benchmark yields are down 0.5
basis points at 5.224%​​ 
    ** Top gainers on FTSE Bursa Malaysia Kl Index
include Hartalega Holdings up 4.19% and Top Glove Corp
 up 2.64% 
    ** In the Philippines, top index losers are LT Group Inc
 down 4.6% and BDO Unibank Inc down 3.52% 
    
    
  Asia stock indexes and                               
 currencies at   0718 GMT                         
 COUNTRY  FX RIC       FX     FX    INDEX  STOCK  STOCK
                    DAILY  YTD %               S  S YTD
                        %                  DAILY      %
                                               %  
 Japan              +0.07  +3.68           -0.04  -0.72
 China    <CNY=CFX  +0.06  +3.81            0.10   6.69
          S>                                      
 India              +0.05  -3.29            0.48  -2.83
 Indones            -0.11  -5.23           -0.54  -18.7
 ia                                                   8
 Malaysi            +0.05  -1.73            0.45  -5.51
 a                                                
 Philipp            +0.12  +4.87           -1.17  -17.9
 ines                                                 2
 S.Korea  <KRW=KFT  +0.20  +2.75           -0.56   6.06
          C>                                      
 Singapo            +0.15  -1.08           -0.35  -21.9
 re                                                   8
 Taiwan             +1.09  +5.30           -0.26   7.32
 Thailan            +0.10  -4.26           -0.14  -23.6
 d                                                    4
 

 (Reporting by Rashmi Ashok in Bengaluru)
  
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