* Graphic: World FX rates tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks tmsnrt.rs/3f2vwbA * S. Korea, Singapore shares up more than 1% * Indonesian rupiah hits over two-week high By Shriya Ramakrishnan Aug 25 (Reuters) - India's rupee opened around 1% above levels from a day earlier on Tuesday after traders reported a halt in a run of central bank interventions aimed at keeping the currency weak to support its stuttering economy. Over recent weeks, banks have spotted interventions by the Reserve Bank of India to backstop the export sector as the nation struggles to emerge from the world's third worst coronavirus outbreak. The rupee, which is about 4% on the year, jumped from opening levels of close to 75 per dollar to 74.24 rupees in early trade. "If not for the RBI’s active intervention to absorb the inflows, INR would have traded much stronger than current levels," Australian bank ANZ said in a note to clients after the moves on Monday. "The RBI will likely continue to intervene though potentially not by as much as before, allowing the currency to appreciate into year-end." Elsewhere in Asia, stock markets were mostly higher as signs of progress in U.S.-China trade negotiations bolstered risk appetite, with export-focused markets leading the way after Washington and Beijing said both sides saw progress in discussions over their phase 1 trade deal. South Korea's KOSPI jumped as much as 1.5% and the won rose 0.3% against the dollar, with sentiment also supported by a slowdown in domestic daily COVID-19 infections from a peak of 397 reported on Sunday. Taiwan and Singapore shares gained about 1% each, while Thai shares were 0.3% firmer. In Indonesia, the rupiah advanced as much as 0.5% to a more than two-week high ahead of a bond auction later in the day, where the country's finance ministry aims to raise 20 trillion rupiah ($1.37 billion) to fund its 2020 state budget. "We expect demand for Indonesia government bonds to stay robust," said Duncan Tan, an interest rates strategist at DBS. "The recent plunge in FX-hedging costs also allows foreign bond investors to cheaply hedge the direct IDR exposure, and should be helpful to draw back in investors who may be concerned about IDR underperformance." Indonesian debt has been a favourite with foreign investors over the years due to their attractive yields, the highest in Southeast Asia. But investors have preferred to stay at the shorter end of the curve recently, pushing the spread between five-year and ten-year debt to its widest since 2013. "There is likely some amount of worries of higher inflation on the back of an expected expansion of Bank Indonesia's balance sheet," Tan said, adding that more liquidity is also being directed to shorter-tenor bonds. Shares in Jakarta were up about 0.8%. Malaysian shares bucked the trend, dragged down by losses for its medical glove makers as progress on coronavirus vaccines and treatments dented the appeal of the sector. HIGHLIGHTS: ** Indonesian 10-year benchmark yields are down 0.7 basis points at 6.729% ** Top gainers on the Singapore STI include Singapore Airlines Ltd up 4.62% at S$3.85, Capitaland Mall Trust up 2.66% at S$1.93, Jardine Cycle & Carriage Ltd up 2.59% at S$19.4 ** Top losers on FTSE Bursa Malaysia Kl Index include Hartalega Holdings Bhd down 5.49% at 16.54 ringgit; Top Glove Corporation Bhd down 5.23% at 26.46 ringgit; Asia stock indexes and currencies at 0410 GMT COUNTRY FX RIC FX FX INDEX STOCK STOCKS DAILY YTD % S YTD % % DAILY % Japan +0.00 +2.49 1.85 -1.04 China <CNY=CFXS +0.14 +0.78 -0.19 10.79 > India 0.00 -3.94 0.41 -5.38 Indonesi +0.27 -5.13 0.81 -15.55 a Malaysia +0.13 -1.88 -0.28 -1.55 Philippi -0.02 +4.45 -0.21 -24.11 nes S.Korea <KRW=KFTC +0.30 -2.45 1.45 7.56 > Singapor +0.09 -1.79 1.30 -20.21 e Taiwan +0.53 +2.54 0.88 6.35 Thailand +0.03 -4.84 0.32 -16.36 ($1 = 14,630.0000 rupiah) (Reporting by Shriya Ramakrishnan in Bengaluru Editing by Shri Navaratnam)
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