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EMERGING MARKETS-Indonesia's markets boosted by jobs bill, Trump discharge softens dollar

    * Trump back in the White House; dollar weakens
    * Rupiah hits strongest level since Sept 2
    * Indonesia stocks hit two-week highs 
    * Graphic: Foreign flows into Asian stocks tmsnrt.rs/3lKhL5I

    Oct 6 (Reuters) - Indonesia led gains among emerging markets
in Asia on Tuesday after parliament moved quick to pass a
contentious jobs bill that could cut onerous regulations and
boost investment for its coronavirus-hit economy.
    Currency and stock markets across the region were broadly
higher as U.S. President Donald Trump returned to the White
House after three nights in the hospital with COVID-19. Markets
are now betting that his release may help fast-track a U.S.
stimulus package.
    Stocks in Jakarta climbed as much as 1.3% to their
highest in more than two weeks, while the rupiah also
rose around 1% to its strongest level in over a month, but eased
slightly to a two-week high.
    OCBC analysts said the market sees the passing of the bill
in Indonesia as a "positive development" given that it cuts back
on a number of aspects of the previous bill, including mandatory
severance benefits.
    "While the positive economic impact will likely only be felt
over time, as it helps to improve Indonesia's competitiveness in
attracting FDI (foreign direct investment), the passage shows
that the government can still undertake significant reforms
despite the challenging circumstances," said Wellian Wiranto, an
economist at OCBC.
    Indonesia's parliament passed the controversial so-called
"Job Creation" bill late on Monday, which has engendered
thousands of workers to hit the streets in protest, at a
critical time for the country.
    By Monday's close, Indonesian stocks had fallen over 7%
since the end of August and the rupiah had eased more than 1% as
Southeast Asia's largest economy struggled with the fallout of
the coronavirus curbs and as some foreign investors shunned
Indonesian assets due to concerns about central bank
independence.
    Asia's emerging currencies rose, led by the Taiwanese dollar
, as the greenback fell after Trump's release prompted
investors to favour riskier assets once again. 
    Markets in China remain closed until Thursday for a public
holiday.
    Elsewhere in the region, Taiwan's stock market
extended gains made on Monday when a private survey pointed to a
strong recovery in its manufacturing sector in September, driven
by solid export orders.
    However, Philippine shares fell 0.5% as inflation
slowed to a four-month low in September in the latest sign of
underlying weakness in the economy.
    Following the reading, the country's central bank said
current monetary policy was sufficient to support the economy,
having left rates unchanged last week, while businesses continue
to struggle with restrictions in place in parts of the country. 
    
    HIGHLIGHTS: 
    ** Indonesian 10-year benchmark yields are down 2.3 basis
points to 6.896%
    ** Global investors warn Indonesia that jobs bill puts
forests at risk
    ** The top index losers in the Philippines are Puregold
Price Club Inc, Aboitiz Equity Ventures Inc
and Jollibee Foods Corp 
           Asia stock indexes and currencies at 0657 GMT
 COUNTRY      FX          FX       FX     INDEX    STOCKS   STOCKS
              RIC         DAILY %  YTD %           DAILY %  YTD %
 Japan                    +0.04    +2.77           0.52     -0.94
 China                    -        +2.42           -        5.51
 India                    -0.18    -2.78           0.78     -4.73
 Indonesia                +0.48    -5.71           1.04     -20.46
 Malaysia                 -0.05    -1.52           0.30     -4.52
 Philippines              +0.03    +4.63           -0.48    -24.37
 S.Korea                  +0.21    -0.40           0.34     7.65
 Singapore                +0.02    -1.12           0.61     -21.42
 Taiwan                   +0.91    +4.69           1.24     5.89
 Thailand                 +0.61    -4.20           0.98     -20.55
    

 (Reporting by Nikhil Kurian Nainan in Bengaluru, additional
reporting by Tom Westbrook in Singapore; Editing by Ana Nicolaci
da Costa, Bernard Orr)
  
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