EMERGING MARKETS-Indonesia shares pare gains on disappointing GDP data; Indian c.bank holds rate

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

* Indonesia's Q4 GDP shrinks more than expected

* Indian c.bank holds rates

* Most currencies weaker as USD heads for best week in 3 months

By Shruti Sonal

Feb 5 (Reuters) - Indonesian shares erased some early gains on Friday after the economy shrank slightly more than expected in the fourth quarter, while the Indian rupee strengthened against the dollar after the central bank kept rates on hold.

The Jakarta benchmark .JKSE , which had added as much as 0.7% in early trade, retraced to be up only 0.1% by 0407 GMT.

Gross domestic product in Southeast Asia's largest economy fell slightly more than expected in the fourth quarter, leading to its first full-year contraction in over two decades as it struggled with the fallout of the COVID-19 pandemic. analysts expect Indonesia's GDP to continue to contract in the first quarter of 2021 and see the Bank Indonesia keeping the door open for further easing, with recent weakness in rupiah IDR= the main impediment to further rate cuts.

In India, the rupee INR=IN slightly strengthened after the central bank held its key rates steady in a widely expected move and reiterated its support for economic recovery by ensuring ample rupee liquidity in the banking system. .NSEI retreated slightly from all-time highs after the announcement and were trading up 0.4% up.

Measures to cap rising bond yields in the wake of a higher-than-expected fiscal deficit announced earlier in the week are likely to be "critical watchpoints", said Lakshmi Iyer, Chief Investment Officer of Debt and Head of Products at Kotak Mahindra (NS: KTKM ) Asset Management.

Thai .SETI and Philippine .PSI benchmarks edged 0.7% higher each, in line with gains in broader markets following a strong finish on Wall Street overnight as progress in vaccine distribution prompted bets on further normalisation in the global economic recovery.

Thai shares were on track to post a 2% weekly gain, after three consecutive weeks in the red.

The country's health minister said on Thursday that the tourism-reliant country will import the first doses of AstraZeneca's vaccine from Asia after Europe enforced export controls. the Philippines, annual inflation accelerated faster than expected to hit the highest level in two years in January, limiting the central bank's room for further interest rate cuts at its meeting next week. currencies in the region weakened as the dollar headed for its best weekly gain in three months, supported by growing confidence that the U.S. economic recovery will outpace global peers. Indonesian rupiah IDR= , Malaysian ringgit MYR= , Singapore dollar SGD= and the Thai baht THB=TH fell between 0.1% and 0.4%.

Highlights:

** Thai Bev to sell 20% of beer business in blockbuster Singapore IPO In the Philippines, top index gainers are LT Group Inc LTG.PS , GT Capital Holdings Inc GTCAP.PS , Jollibee Foods Corp JFC.PS

** Singapore's 10-year benchmark yield is down 2 basis points at 1.066%

Asia stock indexes and

currencies at 0455 GMT

COUNTRY FX RIC

FX

FX INDE STOCKS STOCK

DAILY YTD %

X DAILY S YTD

%

%

% Japan

JPY=

-0.01 -2.19 <.N2 1.33 4.64

25>

China

0.46 1.30

S>

EC>

India

INR=IN

+0.02 +0.17 <.NS

0.56 7.14

EI>

Indones IDR=

-0.14 +0.07 <.JK

0.32 2.47 ia

SE>

Malaysi MYR=

-0.37 -1.28 <.KL -0.23 -2.83 a

SE>

Philipp PHP=

-0.04 -0.15 <.PS

0.90 -2.44 ines

I>

S.Korea

0.33 7.81

C>

11>

Singapo SGD=

-0.10 -1.29 <.ST

0.04 2.21 re

I>

Taiwan

TWD=TP

+1.53 +1.89 <.TW

0.69 7.35

II>

Thailan THB=TH

-0.23 -0.50 <.SE

0.71 3.04 d

TI>