* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://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 INR=IN , 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 .KS11 jumped as much as 1.5% and the
won KRW=KFTC 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 .KS11 and Singapore shares .STI gained about 1%
each, while Thai shares .SSEC were 0.3% firmer.
In Indonesia, the rupiah IDR= 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
ID5YT=RR and ten-year ID10YT=RR 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 .JKSE were up about 0.8%.
Malaysian shares .KLSE 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 ID10YT=RR are down
0.7 basis points at 6.729%
** Top gainers on the Singapore STI .STI include Singapore
Airlines Ltd SIAL.SI up 4.62% at S$3.85, Capitaland Mall Trust
CMLT.SI up 2.66% at S$1.93, Jardine Cycle & Carriage Ltd
JCYC.SI up 2.59% at S$19.4
** Top losers on FTSE Bursa Malaysia Kl Index .KLSE
include Hartalega Holdings Bhd HTHB.KL down 5.49% at 16.54
ringgit; Top Glove Corporation Bhd TPGC.KL 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 JPY= +0.00 +2.49 .N225 1.85 -1.04
China
($1 = 14,630.0000 rupiah)