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EMERGING MARKETS-Malaysian stocks, ringgit slip as calls for PM to resign grow

    * Graphic: World FX rates tmsnrt.rs/2egbfVh
    * Graphic: Foreign flows into Asian stocks tmsnrt.rs/3lKhL5I
    * Malaysian ringgit at near four-week low
    * Thai stocks subdued as protests continue

    Oct 26 (Reuters) - Malaysian stocks slipped on Monday as the
Southeast Asian nation's prime minister faced political
uncertainty after his request to declare a state of emergency
was rejected by the king, with other markets in the region also
trading lower.
    Broader Asian stock markets dropped after a surge in
COVID-19 cases in the United States and Europe rattled hopes of
a global economic recovery, building on uncertainty posed by the
looming U.S. presidential election.
    Doubts swirled over the support Malaysian Prime Minister
Muhyiddin Yassin commands, particularly after the king's
rejection.
    Yassin is facing a leadership challenge from an opposition
leader and infighting within his ruling coalition, and critics
have accused him of using the request for emergency rule as a
pretext to suspend parliament and avoid a test of his razor-thin
parliamentary majority.
    By midday, the Malaysian benchmark stock index was
down 0.7% and the ringgit was perched at a four-week low,
down 0.2% at 4.164 against the dollar.
    "Struggling to recover from the pandemic-triggered recession
right on the heels of weathering U.S.-China trade war ripples,
the last thing ASEAN economies need is a political crisis,"
analysts at Mizuho said, referring to the political situation in
Malaysia and Thailand.
    Thailand's biggest opposition party called on Monday for
Prime Minister Prayuth Chan-ocha to resign, as the parliament
opened a special session called by the former junta leader to
discuss months of protests.
    Thai equities pulled back slightly to 1,213 after
see-sawing for most of the session and the baht traded
slightly lower.
    Analysts at Phillip Securities noted that the focus remained
on the special parliamentary session, with the Thai equity
market set to hover between 1,200 and 1,220 until the crisis was
resolved.
    Taiwan's dollar was among the most sought-after
currencies in the session, gaining more than 1.1% to touch a
two-week high. 
    The currency is the region's top performer so far this year
with a 5.2% gain, as the work-from-home shift fuelled demand for
the country's key chip and semiconductor exports, offering a
buffer to the economic blow from the pandemic.
    Data showing a surge in Singapore's factory output in
September failed to offset the subdued broader mood, with shares
 barely budging on the numbers. The stock index fell 0.3%
and the Singapore dollar also slightly weakened.


    HIGHLIGHTS
    ** Top gainers on the Jakarta stock index include
Sky Energy Indonesia Tbk PT, up 24.14%, and Provident
Agro Tbk PT, up 22.58%. 
    ** Top losers on Thailand's SETI include AEC
Securities PCL, down 16.67%, and Thailand Hospitality
Property Fund, down 7.3%. 
    ** Singapore's 10-year benchmark yield was down 2.3 basis
points at 0.826%​​, while the 5-year benchmark yield traded 1.8
basis points lower at 0.451%​​. 

  Asia stock indexes and                                
 currencies at   0659 GMT                          
 COUNTRY  FX RIC       FX     FX     INDEX  STOCK  STOCK
                    DAILY  YTD %                S  S YTD
                        %                   DAILY      %
                                                %  
 Japan              -0.21  +3.53            -0.09  -0.69
 China    <CNY=CFX  +0.01  +4.15            -0.87   6.54
          S>                                       
 India              -0.16  -3.20            -0.91  -2.85
 Indones            +0.00  -5.26             0.76  -18.2
 ia                                                    3
 Malaysi            -0.19  -1.78            -0.64  -6.53
 a                                                 
 Philipp            +0.05  +4.70             0.11  -16.9
 ines                                                  4
 S.Korea  <KRW=KFT  +0.46  +2.55            -0.72   6.65
          C>                                       
 Singapo            -0.13  -1.08            -0.34  -21.5
 re                                                    4
 Taiwan             +1.09  +5.24             0.08   7.60
 Thailan            -0.06  -4.41            -0.04  -23.2
 d                                                     1
 


 (Reporting by Rashmi Ashok in Bengaluru; editing by Uttaresh.V)
  
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