EMERGING MARKETS-Malaysian shares up on budget passage, Indonesia hits over 10-month high

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh

* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I

* S. Korea shares end at record high

* Indonesian shares hit highest level since Jan 30

* Currency investors await Fed meeting outcome

By Shriya Ramakrishnan

Dec 16 (Reuters) - Emerging stock markets in Asia gained on Wednesday with Malaysia rising for a second straight session after the 2021 budget got approval in parliament, lifting hopes of a faster recovery for the third-largest economy in Southeast Asia.

The Malaysian stock index .KLSE has gained roughly a third in value since hitting lows in March's coronavirus-driven selloff and a 1.3% rise in morning trade meant it is now up almost 6% for the year. recovery, driven by hopes of a global economic bounce next year, has gained pace in Asia in the final weeks of 2020, even as the United States and Europe struggled with fresh COVID-19 infections.

The budget vote in Malaysia also aids Prime Minister Muhyiddin Yassin, whose eight months in office have been beset by coalition infighting and a leadership challenge from opposition leader Anwar Ibrahim.

The budget included a record 322.5 billion ringgit ($79.53 billion) in spending next year to kick-start growth. expect 2021 to be a better year for the market...additional liquidity from the government stimulus announced in Budget 2021 could help boost retail interest," analysts at trading firm CGS CIMB wrote in a note.

Malaysia's gains, however, trail behind several regional peers.

Buoyed by this year's "stay-at-home" boom in tech spending, South Korea and Taiwan's markets are up 26% and 19%, respectively, since January, while those in India and China have gained more than 10%.

That has led to concerns that speculative capital inflows will cause unwanted gains for currencies across the region, leading a number of central banks to intervene in markets or take other steps to cap appreciation.

The Malaysian ringgit MYR= , Indonesian rupiah IDR= and Thai baht THB=TH dipped against a globally weaker dollar in afternoon trade, while the Philippine peso PHP= , Singapore dollar SGD= and Indian rupee INR= edged higher.

Indonesian shares .JKSE , still down 3% on the year, gained 1.6% to their highest since Jan. 30, ahead of a central bank meeting on Thursday that is expected to keep interest rates unchanged.

South Korean shares .KS11 closed at a record high, as investors cheered a pledge from the country's prime minister to secure more hospital beds to cope with the worst outbreak since the start of the pandemic. Korean bonds faced an outflow of $823 million in November, lagging its peers in Indonesia and Thailand, whose bond markets lured inflows of $1.1 billion and $941 million, respectively. Malaysia's 10-year benchmark yield is down 3.59 basis points at 2.721%

** Top gainers on the Jakarta stock index .JKSE include Zebra Nusantara Tbk PT ZBRA.JK up 34.67% at 101 rupiah, Apexindo Pratama Duta Tbk PT APEX.JK up ​ 25% at 530 rupiah

** In the Philippines, top index gainers are Megaworld Corp MEG.PS up 3.02% at 4.1 peso, Universal Robina Corp URC.PS up 2.92% at 158.5 peso

Asia stock indexes and

currencies at 0733 GMT

COUNTRY FX RIC

FX

FX

INDEX STOCK STOCKS

DAILY YTD %

S YTD %

%

DAILY

%

Japan

JPY=

+0.22 +5.01 .N225

0.26 13.11 China

.SSEC

-0.01 10.39

>

India

INR=IN

+0.12 -2.95 .NSEI

0.43 11.97 Indonesi IDR=

-0.07 -1.56 .JKSE

1.63 -3.04 a

Malaysia MYR=

-0.07 +0.84 .KLSE

0.50

5.90 Philippi PHP=

+0.08 +5.43 .PSI

1.00 -6.60 nes

S.Korea .KS11

0.54 26.12

>

Singapor SGD=

+0.13 +1.05 .STI

0.44 -10.97 e

Taiwan

TWD=TP

+1.14 +6.99 .TWII

1.68 19.23 Thailand THB=TH

-0.02 -0.45 .SETI

0.11 -6.39

($1 = 4.0550 ringgit)