* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Bank Indonesia cuts rates by 25 bps
* Rupiah down 0.7%
* Philippine central bank cuts rates by 25 bps
* South Korea, Thai central bank intervene to stem currency
gains
Nov 19 (Reuters) - Indonesia's rupiah fell more than half a
percent and shares gained as the country's central bank cut
rates to support its economic recovery, while Asian stock
markets struggled for traction on rising COVID-19 cases and
restrictions.
Singapore .STI and South Korea .KS11 pared losses over
the day, although Asia's emerging markets drifted as the world
struggles to keep a lid on infections.
Bank Indonesia (BI) cut its seven-day reverse repurchase
rate IDCBRR=ECI by 25 basis points to 3.75%, the lowest since
BI began using the instrument as its benchmark in 2016, defying
a majority of economists who predicted no change in policy.
However, markets were divided through the morning leading up
to the central bank's decision, on expectations that BI may look
to stem the rupiah's IDR= recent strong gains over November to
support the economy out of a recession.
"Our forecast is that the rupiah will stabilise over the
coming months, helped by a shrinking current account deficit,
low inflation and an improvement in global risk appetite,"
Capital Economics, who predicted a cut, said in a note after the
decision.
Indonesia's high-yielding debt is a favourite of foreign
investors. The yield on the benchmark 10-year bonds ID10YT=RR
was unmoved after the decision.
The Philippine central bank unexpectedly cut its policy
rates by 25 basis points to guide the country's economy through
the coronavirus crisis. The peso PHP= closed slightly lower, and stocks in Manila
.PSI tracked the broader fall in risk appetite.
Broadly, currencies in the region were weaker. South Korea's
won KRW=KFTC slid 1% after dealers told Reuters the central
bank was suspected of buying dollars on Thursday to stem gains.
Fresh from Wednesday's warning of the Thai baht's THB=T
strength and its impact on exports, the central bank said it had
intervened in the market. The currency dipped 0.2%. Recent vaccine news from Pfizer PFE.N and Moderna
MRNA.O , while triggering initial market boosts, have done
little to assuage investors' concerns that the new wave of
COVID-19 cases would dent any momentum for a global economic
recovery.
DBS analysts said emerging Asian currencies are unlikely to
be spared from traders looking to cover their shorts, as
"investors have found it increasingly difficult to extend the
euphoria from the US elections and vaccine hopes."
HIGHLIGHTS:
** Indonesian 3-year benchmark yields fell 1.7 basis points
to 4.908%
** Hong Leong Bank Bhd HLBB.KL and Public Bank Bhd
PUBM.KL led losses in Malaysian financials
** Tokyo raises coronavirus alert for infections to highest
level
Asia stock indexes and currencies at 0740 GMT
COUNTRY FX RIC FX FX INDEX STOCKS STOCKS
DAILY % YTD % DAILY % YTD %
Japan JPY= +0.01 +4.61 .N225 -0.36 8.36
China CNY=CFXS -0.20 +5.95 .SSEC 0.47 10.26
India INR=IN -0.10 -3.89 .NSEI -0.08 6.24
Indonesia IDR= -0.71 -1.91 .JKSE 0.54 -11.30
Malaysia MYR= -0.18 -0.09 .KLSE -1.11 -0.11
Philippines PHP= -0.09 +4.90 .PSI -0.77 -10.46
S.Korea KRW=KFTC -1.06 +3.66 .KS11 0.07 15.91
Singapore SGD= -0.16 +0.03 .STI 0.01 -13.47
Taiwan TWD=TP +0.89 +5.62 .TWII -0.37 14.38
Thailand THB=TH -0.20 -1.48 .SETI 0.53 -13.17