* Graphic: World FX rates tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks tmsnrt.rs/3lKhL5I * Ringgit dips 0.2%, Malaysian stocks off nearly 0.8% * Emergency request rejection spares economic crisis - Mizuho * Taiwan dollar at two-week high, up 1.1% Oct 26 (Reuters) - Malaysian stocks stumbled on Monday as political uncertainty in the Southeast Asian nation grew after the king rejected a request by the prime minister to declare a state of emergency in response to the coronavirus crisis. Broader Asian stocks and currencies were subdued, as a surge in coronavirus cases in the United States and Europe threatened hopes for a global economic recovery, adding to uncertainty posed by the looming U.S. presidential election. Malaysian King Al-Sultan Abdullah's rejection on Sunday of the request for the emergency on Sunday is a major setback for Prime Minister Muhyiddin Yassin, who is facing a leadership challenge from an opposition leader and infighting within his ruling coalition. The king's rejection has arguably spared the country a deeper political and consequent economic crisis, analysts at Mizuho wrote, noting that the emergency request could be construed as a backdoor for the prime minister to retain control. "The real danger is that a state of emergency, if construed as an undemocratic tool to out-manoeuvre, will inadvertently exacerbate the PM's political woes, potentially plunging Malaysia into deeper political uncertainty." The ringgit shed more than 0.2% against the dollar to stand at a near four-week low, extending losses of around 0.3% sustained on Friday after talk of the state of emergency request first surfaced. The Malaysian stock index slipped 0.8% to its lowest since Sept. 11, with glove maker Top Glove Corp the biggest loser, down 2.5%. Malaysia has seen a resurgence in coronavirus cases recently, just as businesses and workers try to recover from the economic blow of pandemic-led lockdowns. Thai shares struggled to hold on to gains and the baht dipped slightly after a holiday-extended weekend, as protests demanding the resignation of Prime Minister Prayuth Chan-ocha continued. Shares had recovered slightly on Thursday after an emergency decree aimed at ending months of protests against Chan-ocha's government and the monarchy was revoked, after it brought tens of thousands of people on to Bangkok's streets. Taiwan's dollar was among the most sought after currencies in the session, gaining more than 1.1% to touch a two-week high. The currency is the region's top performer so far this year with a 5.2% gain, as the work-from-home shift fuelled demand for the country's key chip and semiconductor exports, offering a buffer to the economic blow from the pandemic. HIGHLIGHTS ** Top gainers on the Jakarta stock index include Provident Agro Tbk PT, up 21.94%, and Sky Energy Indonesia Tbk PT, up 20.69% ** In the Philippines, top index gainers were DMCI Holdings Inc, up 3.29%, and Puregold Price Club Inc, up 2.82% ** Indonesian 10-year benchmark yields fell 1.8 basis points to 6.6%, while 3-year benchmark yields eased 3.2 basis points to 5.23% Asia stock indexes and currencies at 0448 GMT COUNTRY FX RIC FX FX INDEX STOCK STOCK DAILY YTD % S S YTD % DAILY % % Japan -0.21 +3.53 -0.15 -0.74 China <CNY=CFX +0.01 +4.15 -0.72 6.70 S> India -0.12 -3.16 -0.24 -2.19 Indones +0.03 -5.22 0.71 -18.2 ia 7 Malaysi -0.22 -1.80 -0.52 -6.41 a Philipp +0.06 +4.71 0.14 -16.9 ines 1 S.Korea <KRW=KFT +0.39 +2.47 -0.29 7.11 C> Singapo -0.12 -1.07 -0.10 -21.3 re 4 Taiwan +1.06 +5.21 0.18 7.70 Thailan -0.03 -4.38 -0.09 -23.2 d 5 (Reporting by Rashmi Ashok in Bengaluru; Editing by Muralikumar Anantharaman)
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