* Philippine shares down 1% to 1-week low * Malaysia to impose targeted lockdowns to halt infections surge * Biden lead widens against Trump Oct 7 (Reuters) - The Philippines led declines across Asia's emerging stock markets on Wednesday after U.S. President Donald Trump ended talks on a U.S. stimulus package, adding to negative sentiment across the region. Shares in Manila fell 1% to their lowest in a week, extending losses from Tuesday after data showed inflation slowing to a four-month low in September. Shares in Kuala Lumpur and Jakarta were down 0.3% and 0.5%, respectively as markets tracked falls on Wall Street after Trump said further aid for the world's biggest economy would have to wait until after November election. "Asian markets will likely spend the day digesting the implications of a no U.S. stimulus agreement," said Jeffrey Halley, a senior Asia market analyst at OANDA. "I do not believe hopes of a stimulus deal are now gone forever," he added. Trump trails Democrat Joe Biden in most polls and if his rival sweeps the election, Democrats are likely to push ahead with a package. Markets in Asia are also eyeing whether a Biden presidency would ease tense relations with China - the region's main engine of growth. Chinese markets will reopen after a week-long holiday on Friday. In the Philippines, slowing inflation has raised questions about economic recovery, with prts of the country still under restrictions and the central bank suggesting it will hold rates so prior cuts can filter through. "The downtrend for inflation points to fading economic momentum as consumer demand remains constrained despite recent moves by the government to gradually reopen the economy," ING's senior economist for the Philippines, Nicholas Mapa said. It is not just demand that is cooling inflation, with a relatively robust peso keeping a lid on the cost of imports. The currency inched 0.1% higher on Wednesday. Asia's other emerging currencies were flat to slightly higher against the dollar, with the greenback holding steady from overnight and not seeing further buying. After taking to Twitter to end the talks, Trump later urged Congress to pass funding for airlines, small businesses and provide $1,200 stimulus checks for Americans. Malaysia's ringgit dipped a little over 0.1% as the country said it will be using targeted lockdowns in areas with high rates of coronavirus infections as cases spike. HIGHLIGHTS: ** ABS-CBN up 50% after announcing a return to free TV broadcast for entertainment shows from Oct. 10 ** Top losers in the Philippines are International Container Terminal Services Inc, Metropolitan Bank and Trust Co and Aboitiz Power Corp ** Indonesian 10-year benchmark yields up 2.19 basis points at 6.917% Asia stock indexes and currencies at 0351 GMT COUNTRY FX FX FX INDEX STOCKS STOCKS RIC DAILY % YTD % DAILY % YTD % Japan -0.06 +2.77 -0.24 -1.18 China - +2.42 - 5.51 India +0.00 -2.82 0.00 -4.16 Indonesia +0.07 -5.58 -0.50 -21.04 Malaysia -0.14 -1.64 -0.31 -5.28 Philippines +0.11 +4.53 -1.02 -25.14 S.Korea -0.06 -0.46 0.37 8.05 Singapore +0.06 -1.28 -0.01 -21.53 Taiwan +0.63 +4.61 0.21 6.12 Thailand -0.45 -4.50 -0.04 -20.90 (Reporting by Nikhil Kurian Nainan in Bengaluru; editing by Richard Pullin)
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