EMERGING MARKETS-Asian shares prune losses after China stocks rebound, yuan lifts FX

    * Graphic: World FX rates
    * Graphic: Foreign flows into Asian stocks
    * Yuan jumps 0.4%, Chinese shares shed losses to stand 0.5%
    * Singapore dollar adds 0.2%, South Korean won sheds losses
    * Philippine shares see exaggerated drop after last week's
    * Indonesian and Malaysian markets shut due to local

    By Rashmi Ashok
    Oct 29 (Reuters) - Asian equities were shielded from deeper
losses on Thursday after Chinese stocks and the yuan rebounded
by midday, acting as a buffer to an overnight sell-off on Wall
Street due to a surge in COVID-19 cases in Europe and the United
    France and Germany went into lockdowns, prompting worries
that more European nations may be forced to follow suit which
could threaten the nascent economic recovery. A surge in U.S.
infections also sapped risk sentiment.
    Philippine stocks fell the most, posting a 2% drop in
their worst session since Aug. 3, as investors liberally sold
off shares after last week's 10% rally.
    Other markets, however, recovered from deeper losses after
China's benchmark stock index reversed course to add
0.5% by midday as leading companies posted robust third-quarter
    Reuters' report that Joe Biden will "consult allies" on
future China tariffs if elected also seems to be supporting
Asian markets and has put a floor under the negative sentiment
for now, Jeffrey Halley, senior market analyst at OANDA wrote.

    In tandem with the Chinese yuan's 0.4% jump, the
closely-tied Singapore dollar added 0.2% and the South
Korean won rebounded from losses of as much as 0.5%
to hold steady by midday.
    Analysts say Asian assets have largely been shielded from
the sell-off elsewhere as the region's economic engine, China,
has shown strong signs of a recovery through recent data while
coronavirus cases have remained under control.
    The Taiwan dollar jumped 1% and the Philippine peso
 traded slightly higher. The Thai baht also
pulled back from losses to stand flat.
    Worries about the outcome of the U.S. election next week
remained a big pressure point, given the stark difference
between Democratic presidential candidate Joe Biden's trade
policies towards Asia from those of President Donald Trump. 
    "A Biden win would likely bode well for Asia, given a less
aggressive trade stance/potential for stronger fiscal stimulus.
Trade orientated FX such as the yuan, won, Singapore dollar and
Taiwan dollar will likely be the main beneficiaries," analysts
at TD Securities wrote earlier this week.
    They also noted that a weaker U.S. dollar would also be
likely if Biden won, while a Trump win could spur a stronger
dollar and further hinder appreciation in Asian currencies.
    Markets in Indonesia and Malaysia were shut on account of
local holidays.
    ** Top losers on the Singapore STI include Mapletree
Commercial Trust, down 3.24%, and Capitaland Mall
Trust, down 2.2%.
    ** Top losers on Thailand's SETI include TWZ
Corporation PCL, down 16.67%, and Bangkok Post PCL
, down 15.44%. 
    ** Singapore's 10-year benchmark yield was down
0.9 basis point at 0.822%,​​ while the 5-year benchmark yield
 was up 2.6 basis points at 0.49%​​ 

  Asia stock indexes and                                
 currencies at   0706 GMT                          
                    DAILY  YTD %                S  S YTD
                        %                   DAILY      %
 Japan              -0.05  +4.09            -0.37  -1.37
 China    <CNY=CFX  +0.31  +3.81             0.36   7.57
 India              -0.23  -3.60             0.02  -3.59
 Philipp            +0.16  +4.72            -2.01  -20.0
 ines                                                  4
 S.Korea  <KRW=KFT  -0.07  +2.21            -0.79   5.87
 Singapo            +0.14  -1.37            -0.76  -23.5
 re                                                    3
 Taiwan             +1.03  +5.23            -1.02   5.55
 Thailan            -0.06  -4.17            -0.26  -23.7
 d                                                     4

 (Reporting by Rashmi Ashok in Bengaluru; editing by Uttaresh.V)