* 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 https://tmsnrt.rs/3lKhL5I
Oct 6 (Reuters) - Indonesia led gains among emerging markets in Asia on Tuesday after its parliament passed a contentious jobs bill earlier than expected, which 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 hospital with the coronavirus. Markets were now betting that his release may help fast-track a U.S. stimulus package. in Jakarta .JKSE climbed as much as 1.3% to its highest in more than two weeks, while the rupiah IDR= also rose around 1% to its strongest level in over a month.
OCBC analysts said the market would see the passing of the bill in Indonesia as a "positive development".
"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 so-called "Job Creation" bill late on Monday 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. emerging currencies rose, led by the Taiwanese dollar, as the greenback fell after Trump's release from hospital prompted investors to favour riskier assets.
Markets in China remain closed until Thursday for a public holiday.
Elsewhere in the region, Taiwan's stock market .TWII 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. It was up 1%.
But Philippine shares .PSI fell 1.3% as inflation slowed to a four-month low in September in the latest sign of underlying weakness in the economy. Philippine central bank said on Tuesday current monetary policy was sufficient to support the economy, having left rates unchanged last week, but businesses continue to struggle with restrictions in place in parts of the country.
** Indonesian 3-year benchmark yields down 0.5 basis points to 5.34%
** Global investors warn Indonesia that jobs bill puts forests at risk The top index losers in the Philippines are Puregold Price Club Inc PGOLD.PS , Aboitiz Equity Ventures Inc AEV.PS and LT Group Inc LTG.PS
Asia stock indexes and currencies at 0337 GMT COUNTRY
DAILY % YTD %
DAILY % YTD % Japan
-4.59 Philippines PHP=
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