EMERGING MARKETS-Malaysia stocks slump on COVID-19 curbs, Asian currencies range-bound

    * Malaysia shares fall as much as 1.6%
    * Malaysia lockdown may shave 0.7% off 2021 growth- CGS-CIMB
    * Rupiah falls as U.S. 10-year yields top 1%

    By Nikhil Nainan
    Jan 12 (Reuters) - Malaysia led losses across Southeast
Asian stock markets on Tuesday after a state of emergency was
declared in the country to curb the spread of COVID-19, with
bank stocks leading the decline.
    Malaysia's main stock index declined as much as
1.6%, falling sharply for a second straight session, while other
Asian stock markets also tracked overnight losses on Wall
Street. South Korean shares were down more than 1%.
    Malaysia's King Al-Sultan Abdullah declared a nationwide
state of emergency on Tuesday to curb the coronavirus, one day
after the country's prime minister announced a 14-day lockdown
in the capital and five states.
    CGS-CIMB Securities expects a fortnight of restrictions will
shave 0.7% off Malaysia's 2021 growth forecast, estimating daily
economic losses of 750 million ringgit ($184.87 million).
    "Given the risk that the MCO (movement control order) may be
extended... additional policy support may be needed to support
the economy," the brokerage said, adding the central bank may
discuss a rate cut at its monetary policy meeting next week.
    The ringgit weakened 0.2%, while other emerging
currencies in Asia traded in tight ranges.
    Indonesia's rupiah dipped 0.5% against the dollar,
which tracked U.S. Treasury yields higher. Ten-year U.S. yields
topped 1% last week for the first time since March. 
    The rupiah is generally favoured by foreign investors
seeking to tap Indonesia's high-yielding debt. 
    TD Securities expects short-term pressure to continue on the
rupiah as U.S. yields rise and inflows into local bond markets
temporarily ease. 
    The Taiwanese dollar, which tends to move in wider
ranges, strengthened 1.8%. Taiwan's central bank has sent
inspectors to domestic banks to investigate whether exporters
are speculating in foreign currency as the Taiwan dollar soars
against the U.S. dollar, Reuters reported on Monday.

    ($1 = 4.0570 ringgit)
    ** Indonesian 3-year yields are up 9 basis points at 5.084%,
while 10-year yields are up 4.5 basis points at 6.263%
    ** Hong Leong Bank down 3.2%, CIMB Group Holdings
down 3% and Public Bank Bhd dropped 2.3% 
        Asia stock indexes and currencies at 0355 GMT      
 COUNTRY      FX          FX       FX     INDEX    STOCKS   STOCKS
              RIC         DAILY %  YTD %           DAILY %  YTD %
 Japan                    -0.03    -0.99           0.00     2.54
 China                    +0.14    +0.90           0.80     2.50
 India                    +0.00    -0.43           -0.08    3.52
 Indonesia                -0.49    -0.78           0.30     7.07
 Malaysia                 -0.17    -0.91           -1.18    -1.79
 Philippines              +0.10    -0.10           -0.66    1.64
 S.Korea                  -0.20    -1.21           -1.81    7.59
 Singapore                +0.00    -0.74           -0.45    4.45
 Taiwan                   +1.75    +1.74           -0.60    4.96
 Thailand                 -0.10    -0.63           -0.22    5.78
 (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Ana
Nicolaci da Costa)