* Graphic: World FX rates tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks tmsnrt.rs/3lKhL5I * Indonesia 10-year bond prices rise most since March 20 * Malaysia budget due at 0800 GMT * Most stock indexes headed for weekly gains By Anushka Trivedi Nov 6 (Reuters) - Indonesia's rupiah firmed more than 1% on Friday and was set to mark its best week since June, while other emerging Asian currencies and stock markets also gained as Democrat Joe Biden edged closer to victory in the U.S. presidential election. The rupiah hit a four-month high against the dollar and was set to advance around 2.6% for the week, as Thursday's drop in Treasury yields to near three-week lows encouraged investors to push funds into Indonesia's high-yielding debt. Expectations of a divided U.S. Congress that will struggle to pass major fiscal stimulus has stoked expectations this week that the Federal Reserve will have to continue to pump more cash into the economy through bond-buying and other emergency measures. The more quantitative easing the Fed does, the more funds are likely to trickle down to emerging markets, particularly those with attractive local bond yields. Indonesian 10-year benchmark yields were down 25.5 basis points at 6.354%, the biggest fall since March 20. Bond prices rise as yields fall. "Republican control of the Senate suggests that no major fiscal stimulus is in the offing," said Wei Liang Chang, a macro strategist at DBS bank, Singapore. "This has also led to a drop in U.S. Treasury yields, which raises the attractiveness of the higher-yielding rupiah." Investors have also bought the yuan and other China-linked assets over the past two days on the view that a Biden presidency will mean a less hawkish trade and foreign policy. The yuan dipped but was still set to mark its best week in a month, while Taiwan's dollar and the Thai baht jumped 1.3% and 0.6%, respectively. After investors dumped global equities in October ahead of the election, this week has seen most stock markets rise. Malaysian shares and the ringgit were steady ahead of a 2021 budget announcement, seen as crucial for Prime Minister Muhyiddin Yassin as he faces threats to his government. U.S. bank Citi said it expected the budget to include a 28 billion ringgit ($6.76 billion) provision for COVID-19 related matters and target boosting revenue by introducing new taxes. Trade-reliant Malaysia is in dire need of stimulus as the pandemic forced its economy into its first contraction in over a decade in the second quarter. HIGHLIGHTS ** Thailand's 10-year government bond yields are down 0.5 basis points at 1.33% ** A four-day rally in the Singapore's benchmark came to a halt as shares fell 0.5% ** Top gainers on FTSE Bursa Malaysia Kl Index include Axiata Group Bhd up 2.62% and Petronas Dagangan Bhd up 2.54% Asia stock indexes and currencies at 0606 GMT COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS STOCKS DAILY % YTD % Japan -0.09 +4.88 1.01 2.93 China -0.27 +5.06 -0.73 8.06 India +0.49 -3.58 0.48 0.08 Indonesia +1.27 -2.18 0.54 -16.04 Malaysia +0.10 -1.21 0.40 -5.12 Philippines +0.11 +5.03 0.62 -14.45 S.Korea +0.45 +2.96 0.00 9.83 Singapore -0.01 -0.39 -0.45 -20.04 Taiwan +1.26 +5.58 0.42 8.14 Thailand +0.62 -2.41 -0.36 -20.26 ($1 = 4.1390 ringgit) (Editing by Patrick Graham and Rashmi Aich)
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