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EMERGING MARKETS-Asian stock lift from China data fades as Trump-Biden debate sparks concern

    * Graphic: World FX rates tmsnrt.rs/2egbfVh
    * China Manufacturing PMI for September 51.5 vs August's
51.0
    * Chaotic U.S. presidential debate leaves more questions

    By Nikhil Nainan
    Sept 30 (Reuters) - An early boost to Asia's emerging stock
markets from Chinese economic data faded on Wednesday as a
chaotic first U.S. presidential debate weakened sentiment
globally and traders reined in bets ahead of several regional
market holidays.
    The debate saw heated clashes between President Donald Trump
and Democratic rival Joe Biden, leaving more doubts about the
November election and whether Trump would accept an unfavourable
result than clarity of who could come out on top.
    Chinese stocks had initially led gains after two
surveys showed China's factory activity, a bellwether for the
region, still firmly in growth territory in September.

    Malaysia, Taiwan and the Philippines all held onto gains of
around 0.4% as the day wore on, but both Shanghai and Singapore
fell back to trade around 0.2% lower.
    A Trump victory in November would spell more volatility from
relations with China and knock-on effects for the rest of Asia,
according to some analysts. Goldman Sachs analysts on Tuesday
said a victory for Biden and his Democratic Party in House and
Senate elections was likely to boost the stock market.

    "During the Trump presidency outward direct investment to
emerging economies has more than halved," said Stuart Ritson, a
portfolio manager of emerging market local currency debt at
Aviva Investors. 
    "(If Biden wins) We might be able to see direct investment
begin to flow again. In that environment, (emerging market
currencies) can do a little better," he said.
    Most stock markets in Asia, in line with global trends, are
slated to post declines in September, with China snapping three
months of gains and Indonesia five, after fresh jolts to
the global economic recovery emerged from Europe and investors
re-valued companies seen as winners during the COVID-19
pandemic. 
    China will start a week-long break from Thursday, while
holidays in South Korea and Hong Kong for the remainder of the
week and India on Friday kept trading subdued.
    Taiwan, whose tech-focussed economy has made it a robust
performer in the coronavirus crisis, stood out again on
Wednesday, with its currency rising 0.6%. 
    The U.S. dollar found more support after the debate,
prodding most other regional currencies marginally lower. 
    The Philippine peso was marginally lower ahead of a
central bank meeting on Thursday, where economists predict no
policy changes following a total of 175 basis point cuts this
year.
    
    HIGHLIGHTS: 
    ** Philippine 10-year benchmark yield unchanged at 3.05%
    ** Singapore's top gainer was Keppel Corp after it
identified assets worth S$17.5 billion to monetise
    ** Fractious presidential debate unlikely to move needle for
Trump
    Investors react to first Trump-Biden election debate

           Asia stock indexes and currencies at 0707 GMT
 COUNTRY      FX RIC      FX       FX     INDEX    STOCKS   STOCKS
                          DAILY %  YTD %           DAILY %  YTD %
 Japan                      +0.05  +2.86             -1.50   -1.99
 China                      +0.09  +2.27             -0.19    5.51
 India                      +0.15  -3.20              0.07   -7.71
 Indonesia                  -0.03  -6.53             -0.10  -22.63
 Malaysia                   -0.12  -1.71              0.44   -4.93
 Philippines                -0.14  +4.58              0.39  -24.96
 S.Korea                        -  -1.12                 -    5.93
 Singapore                  -0.01  -1.78             -0.19  -23.45
 Taiwan                     +0.66  +3.95              0.38    4.32
 Thailand                   -0.16  -5.56             -0.75  -21.01
 
 (Reporting by Nikhil Kurian Nainan in Bengaluru, additional
reporting by Stanley White; Editing by Subhranshu Sahu)
  
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