* Jakarta COVID-19 curbs extended * Malaysia's ruling coalition wins state election; reduces political uncertainty * South Korea, Taiwan chipmakers rise after U.S tightens exports to China's SMIC Sept 28 (Reuters) - South Korean and Taiwanese stocks each closed over 1% higher on Monday as investors priced in a boost for their tech-focussed economies from tighter U.S. curbs on China's biggest chipmaker, adding to a bright start to the week for most Asian markets. Data showing profits at Chinese industrial firms grew for a fourth straight month underpinned stock markets in the region, although the extension of export curbs on Semiconductor Manufacturing International Corp left Shanghai's broad index marginally lower. The dual-listed chipmaker's shares plunged more than 5% in both Shanghai and Hong Kong. Local chipmakers gained the most in Seoul, helping the market rise 1.3% as the number of domestic COVID-19 infections fell to its lowest in nearly two months. Taiwan's stock market ended nearly 2% higher. "The knee-jerk reflex (to the SMIC decision), apart from caution, may be for Japanese, Korean and Taiwanese chipmakers to opportunistically benefit from substitution trades," analysts from Japanese bank Mizuho said in a note. China's recovery has been among the few bright spots for the global economy as a second wave of coronavirus infections mounts in Europe, prompting countries to reimpose restrictions and quashing hopes that the continent was turning a corner. One of a handful of Asian countries still struggling to get COVID-19 numbers down is Indonesia and stocks there fell 0.5% as curbs were extended in the capital Jakarta. India is also struggling, but markets there climbed 1.4% on hopes that the government would pump more money into public sector banks. The Reserve Bank of India is expected to leave its key interest rate unchanged on Thursday with inflation above its limit. Some see an end to the central bank's easing cycle in which it has slashed rates by 115 basis points since March. Currencies were more of a mixed bag, with most flat to slightly lower as the day progressed against a dollar that was little changed. Taiwan's dollar stood out, rising 0.7% against the greenback, cementing itself as the region's second-best performer this year as its tech-focused and export-oriented economy reaps the benefits of the stay-at-home life. Malaysia's ringgit was flat after a victory by the ruling party in a state election calmed investor nerves that saw the currency lose around 1.4% last week after opposition leader Anwar Ibrahim's said he had a majority to oust the government. HIGHLIGHTS: ** Indonesian 3-year benchmark yields down 9.2 basis points to 5.073% ** Malaysia's 10-year benchmark yield down 1.79 basis points to 2.78% Asia stock indexes and currencies at 0706 GMT COUNTRY FX RIC FX FX INDEX STOCKS STOCKS DAILY % YTD % DAILY % YTD % Japan +0.20 +3.06 1.32 -0.61 China +0.00 +2.07 -0.04 5.50 India -0.01 -3.04 1.39 -7.92 Indonesia -0.03 -6.53 -0.46 -21.85 Malaysia -0.02 -1.94 0.11 -4.91 Philippines -0.04 +4.46 0.39 -25.00 S.Korea -0.11 -1.47 1.29 5.02 Singapore +0.07 -2.30 0.38 -23.00 Taiwan +0.69 +3.55 1.88 3.88 Thailand -0.28 -5.65 1.23 -20.23 (Reporting by Nikhil Kurian Nainan in Bengaluru Editing by Subhranshu Sahu)
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