* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Rupiah eases for 5th day
* Jakarta stocks up 2.5% for second straight session
* Markets price in rate cut ahead of BI meeting
Sept 14 (Reuters) - Indonesia stocks recouped more than half of last week's 4% decline on
Monday after new COVID-19 restrictions in Jakarta proved less severe than feared, with stock
markets across Asia buoyed by the resumption of trials for one of the leading coronavirus
vaccine candidates.
South Korean stocks .KS11 gained more than 1% while most regional currencies gained
against a slightly weaker dollar ahead of policy readouts this week from the Bank of Japan, Bank
of England and the U.S. Federal Reserve.
Details of curbs in Jakarta laid out over the weekend eased fears of further economic damage
even as new daily cases in the country topped 3,000 for the sixth day running. Bond market moves
also pointed to rising expectations of more cuts in official interest rates, starting this week.
"The terms appear less strict than the market anticipated when it was first announced,"
Mulya Chandra, Morgan Stanley's head of research for Indonesia, said in a note.
"This could drive the market to recoup last week's losses that were attributed to fear of
stricter lockdown protocols."
The rupiah IDR= , which underpins one of Asia's most popular bond markets for foreign
investors but has been pressured this month by fears that recommendations to overhaul Bank
Indonesia (BI) will compromise its autonomy, dipped 0.1%.
Yields on three-year ID3YT=RR bonds fell 27 basis points as investors moved to price in a
likely rate cut at Thursday's policy meeting, while those on 10-year ID10YT=RR bonds also
dipped as concerns about growth, debt and the country's policy mix eased.
A broadly weaker U.S. dollar should give the central bank, which has been intervening to
stabilise the rupiah, more room to move to prop up domestic growth prospects without fear of
weakening the currency too much, said Societe Generale's India economist Kunal Kundu.
"We expect three additional 25 basis point rate cuts each in 2020."
Taiwan's dollar TWD=TP was the biggest gainer among regional currencies on Monday, rising
almost 1% against its U.S. counterpart.
HIGHLIGHTS:
** Indonesian 3-year benchmark yields are down 27.7 basis points at 4.692%
** Top gainers on the Jakarta stock index include PT Trimuda Nuansa Citra TNCA.JK up
25.16%, Sky Energy Indonesia JSKY.JK up 22.62% and Pollux Properti Indonesia POLL.JK up
19.92%
** In the Philippines, top index gainers are Ayala Land ALI.PS up 2.96%, Megaworld
MEG.PS up 2.93% and DMCI Holdings DMC.PS up 2.72%
Asia stock indexes and currencies at 0705 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD %
Japan JPY= +0.14 +2.47 .N225 0.65 -0.41
China CNY=CFXS +0.06 +1.94 .SSEC 0.45 7.38
India INR=IN +0.18 -2.75 .NSEI 0.75 -5.08
Indonesia IDR= -0.13 -6.72 .JKSE 2.64 -18.26
Malaysia MYR= +0.14 -1.35 .KLSE 0.27 -5.02
Philippines PHP= +0.10 +4.45 .PSI 0.49 -23.26
S.Korea KRW=KFTC +0.29 -2.29 .KS11 1.30 10.48
Singapore SGD= +0.10 -1.63 .STI -0.14 -22.84
Taiwan TWD=TP +0.89 +2.94 .TWII 0.88 6.59
Thailand THB=TH +0.06 -4.47 .SETI 0.10 -18.90