EMERGING MARKETS-Asian stocks, FX slip; Malaysia politics, Indonesia rate decision in focus

    * Graphic: World FX rates
    * Graphic: Foreign flows into Asian stocks
    * Malaysia's Anwar to hold press conference at 0600 GMT 
    * Indonesia expected to stand pat on interest rates
    * S. Korean markets dip as coronavirus cases jump  

    By Shriya Ramakrishnan
    Oct 13 (Reuters) - Asia's emerging currencies and stock
markets eased on Tuesday, tracking a weaker yuan and
disappointment over a COVID-19 vaccine trial halt, while
investors eyed political developments in Malaysia and a central
bank decision in Indonesia. 
    The yuan, often a key driver for regional
currency movements, slipped after the central bank set a weaker
than forecast midpoint, pulling the Singapore dollar, S.
Korean won and Indonesia rupiah lower.
    The Taiwan dollar, a consistent outperformer, once
again stood out with gains of nearly 1%.  
    The Malaysian ringgit and stocks inched
lower, as investors awaited the outcome of opposition leader 
Anwar Ibrahim's meeting with the king about his bid to oust
Prime Minister Muhyiddin Yassin and form a new government. 

    Anwar added a fresh twist to the Southeast Asian nation's
political drama last month after he declared that he had secured
a "formidable" majority from federal lawmakers to form a new
    The power struggle comes as the country, already grappling
with an economy battered by the coronavirus, faces a renewed
surge in infections, prompting authorities to impose movement
restrictions in the capital city for two weeks.
    "How credible is the opposition's threat to topple the
ruling administration is still to be seen," said Prakash Sakpal,
ING's senior economist for Asia.
    "Once domestic political anxiety is put to rest and global
oil prices stabilise, MYR may revert to be an Asian
outperformer, the status it enjoyed from June through August
this year." 
    In Indonesia, the rupiah was marginally lower and
stocks dipped 0.3% ahead of the central bank meeting
later in the day, where it is widely expected to leave its key
rate unchanged at 4% in a bid to prioritise currency stability.

    The rupiah, Asia's worst performing currency this year, has
been under pressure due to concerns over a proposed amendment of
the central bank act that could undermine Bank Indonesia's
independence and prolong its debt monetisation operations. 
    Stock markets across the region were flat to lower, as a
post-holiday rally in Chinese shares cooled and Johnson
& Johnson temporarily paused its COVID-19 vaccine
candidate clinical trials due to an unexplained illness in a
study participant.
    In South Korea, the benchmark KOSPI fell 0.3% and
the won slipped as a triple-digit jump in domestic coronavirus
cases weighed on sentiment. 
    Financial markets in Thailand were closed for a holiday. 
    ** Malaysia's 10-year benchmark yield is down
0.6 basis points at 2.704%
    ** Top losers on FTSE Bursa Malaysia Kl Index
include DiGi.Com Bhd down 1.69% at 4.06 ringgit; MISC
Bhd down 1.43% at 6.89 ringgit
    ** Top losers on the Jakarta stock index include
Gunawan Dianjaya Steel Tbk PT down 6.98% at 80 rupiah;
Sky Energy Indonesia Tbk PT down 6.92% at 242 rupiah
  Asia stock indexes and                                    
 currencies at   0425 GMT                             
                        DAILY  YTD %               S   YTD %
                            %                  DAILY  
 Japan                  -0.10  +3.04            0.09   -0.32
 China                  -0.09  +3.12           -0.28    9.80
 India                   0.00  -2.58            0.22   -1.74
 Indonesi               -0.14  -5.58           -0.30  -19.39
 Malaysia               -0.19  -1.47           -0.29   -4.70
 Philippi               +0.04  +4.30            0.02  -24.02
 S.Korea                -0.27  +0.57           -0.33    9.01
 Singapor               -0.16  -1.09            0.09  -20.73
 Taiwan                 +0.87  +5.05           -0.41    7.55
 (Reporting by Shriya Ramakrishnan in Bengaluru; Editing by
Stephen Coates)