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EMERGING MARKETS-Indonesian rupiah falls on virus concerns; Asia FX eyes Fed meeting

    * Rupiah set for worst day since May 20
    * S.Korea's won tracks biggest drop since June 2
    * China, Taiwan markets closed
    * Graphic: World FX rates tmsnrt.rs/2RBWI5E
    * Asian stock markets: tmsnrt.rs/2zpUAr4

    By Shashwat Awasthi
    June 14 (Reuters) - Indonesia's rupiah was on track for its
biggest daily fall in over three weeks on Monday amid surging
coronavirus infections, while trading in most other Asian
emerging markets was muted ahead of a Federal Reserve meeting
this week.
    The rupiah weakened 0.3% and was set for its biggest
one-day fall since May 20 after Indonesia on Sunday reported the
highest number of daily coronavirus cases since late February.

    Stocks in Jakarta traded flat by 0412 GMT as dealers
also looked ahead to Thursday's monetary policy meeting, where
Bank Indonesia is expected to leave rates at record lows.

    Malaysia's ringgit and Thailand's baht inched
about 0.2% lower as overall trading was thinned by holidays in
China and Taiwan and investors awaited monetary policy meetings.
    The U.S. central bank meeting on Wednesday will be key this
week as financial markets look to see whether the Federal
Reserve will reiterate that a recent rise in U.S. inflation is
transitory.
    Investors are also eyeing the meeting to see whether the Fed
could signal it is moving away from ultra-loose monetary policy
earlier than expected.
    "The FOMC's policy tightening path will be the focus this
week, but there appears to be limited scope for a hawkish
surprise at this meeting," analysts at Barclays said in a note.
    "A benign FOMC outcome should support risk and EM FX in the
near term."
    Emerging market assets have recorded healthy inflows in
recent weeks with U.S. Treasury yields and the dollar under
pressure as markets have largely shrugged off worries over
rising U.S. inflation.
    The Philippine bourse has surged more than 11% in the
last three weeks, equities in Thailand, Taiwan
and Vietnam have rallied more than 5% each over that
period, and Indian stocks have notched up
record highs.
    The ringgit and the baht have risen for the last three weeks
to be among the stand out emerging market currencies in Asia,
and the rupiah has added more than 1% over that time.
    "Fundamentals and flows would remain supportive of Asia FX
and we see modest room for a further gain vs USD," ANZ Research
analysts said.
    Taiwan's central bank also holds a monetary policy meeting
on Thursday, while the Bank of Japan will announce its rate
decision on Friday.
    
    HIGHLIGHTS:
    ** Indonesian 10-year benchmark yields are down 7.3 basis
points at 6.361%
    ** Top gainers on the FTSE Bursa Malaysia Index include Top
Glove up 1.9%, Hartalega Holdings up 1.7%
and Supermax up 1.6%
    
     Asia stock indexes and currencies at 0436 GMT                                    
   COUNTRY      FX RIC    FX DAILY %     FX YTD %       INDEX   STOCKS DAILY %  STOCKS YTD %
    Japan                   -0.09          -5.93                     0.61           6.13
    China                    0.00          +2.04                     0.00           3.36
    India                   -0.14          -0.14                    -0.74          12.16
  Indonesia                 -0.24          -1.28                     0.09           2.04
  Malaysia                  -0.19          -2.28                     0.59          -2.63
 Philippines                -0.12          +0.38                    -0.26          -3.50
   S.Korea                  -0.56          -2.76                     0.00          13.08
  Singapore                 -0.08          -0.43                    -0.06          10.98
   Taiwan                    0.00          +3.08                     0.00          16.84
  Thailand                  -0.13          -3.67                    -0.24          12.65
 
 (Reporting by Shashwat Awasthi in Bengaluru; Editing by Ana
Nicolaci da Costa)
  
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