* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* S. Korean stocks add 4%, mark sharpest weekly gain since 2008
* Singapore's index firms as banks shine
* Indonesian rupiah under pressure, falls 0.6%
By Anushka Trivedi
Jan 8 (Reuters) - Most Asian equities were set to notch their biggest weekly gains
in many months on Friday, while Indonesia's rupiah and the South Korean won led the
declines among currencies as rising U.S. yields lifted the dollar.
Almost every stock market in the region gained around 2%, with Philippines .PSI ,
Thailand .SETI and Indonesia .JKSE all hitting multi-month highs as global equities
rode the euphoria of a potentially large U.S. stimulus. MKTS/GLOB
Singapore's benchmark .STI , the worst performer last year among emerging markets,
soared as the heavyweight financials tracked their U.S. peers higher. The Straits Times
Index has gained about 5% this week, its most since mid-November.
Seoul's stocks .KS11 rocketed 4%, getting an extra boost from Hyundai's
005380.KS 20% surge on possible electric vehicle deal with Apple AAPL.O . KOSPI's
weekly gains amounted to a whopping 9.7%, its best performance since 2008. KRW/
However, the South Korean won KRW=KFTC , along with the Indonesian rupiah IDR= ,
slipped as investors dumped the countries' bonds in favour of U.S. debt.
The dollar index .DXY held on to its biggest gain in more than two months as
Treasury yields US10YT=RR climbed more than 1% after a Democrat victory to control
the Senate on Wednesday raised hopes of more fiscal stimulus. FRX/
The rupiah, which underpins one of Asia's most popular bond markets for foreign
investors, eased 0.6%. Indonesian 10-year benchmark yields ID10YT=RR were up 9.9
basis points at 6.13%, their highest since Nov. 24.
"The rebound in the dollar overnight, helped in part by rising U.S. bond yields,
has seen Asian currencies open weaker today," said Khoon Goh, head of Asia research at
ANZ.
However, analysts expect this bounce in the dollar to be temporary, banking on
vaccine rollouts to support economic growth in Asia and appreciation in the currencies.
The Singapore dollar SGD= , Malaysia's ringgit MYR=MY and the Thai baht THB=TH
recovered from session lows to trade 0.1% to 0.2% weaker by midday.
HIGHLIGHTS
** The most liquid 3-year Korean treasury bond yield rose by 1.7 basis points to
0.980%.
** Taiwan's dollar TWD=TP surged 1.6%
** Top gainers on the Singapore STI .STI include Jardine Cycle & Carriage Ltd
JCYC.SI , up 4.9%, and DBS Group Holdings Ltd DBSM.SI , up 4.4%
Asia stock indexes and currencies at
0658 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD
%
Japan JPY= -0.10 -0.64 .N225 2.36 2.53
China CNY=CFXS +0.18 +0.96 .SSEC -0.24 2.72
India INR=IN +0.00 -0.35 .NSEI 1.02 2.14
Indonesia IDR= -0.64 +0.43 .JKSE 1.67 4.64
Malaysia MYR= -0.07 -0.45 .KLSE -0.26 -1.75
Philippines PHP= +0.13 -0.06 .PSI 2.39 2.10
S.Korea KRW=KFTC -0.23 -0.33 .KS11 3.97 9.70
Singapore SGD= -0.05 -0.33 .STI 2.46 4.74
Taiwan TWD=TP +1.60 +1.80 .TWII 1.64 4.96
Thailand THB=TH -0.20 -0.33 .SETI 1.62 6.14