EMERGING MARKETS-Asian stocks set to end week firmer; rupiah, won ease on bond outflows

    * Graphic: World FX rates
    * S. Korean stocks add 4%, mark sharpest weekly gain since 2008
    * Singapore's index firms as banks shine
    * Indonesian rupiah under pressure, falls 0.6%

    By Anushka Trivedi
    Jan 8 (Reuters) - Most Asian equities were set to notch their biggest weekly gains
in many months on Friday, while Indonesia's rupiah and the South Korean won led the
declines among currencies as rising U.S. yields lifted the dollar.
    Almost every stock market in the region gained around 2%, with Philippines,
Thailand and Indonesia all hitting multi-month highs as global equities
rode the euphoria of a potentially large U.S. stimulus.   
    Singapore's benchmark, the worst performer last year among emerging markets,
soared as the heavyweight financials tracked their U.S. peers higher. The Straits Times
Index has gained about 5% this week, its most since mid-November.
    Seoul's stocks rocketed 4%, getting an extra boost from Hyundai's
 20% surge on possible electric vehicle deal with Apple. KOSPI's
weekly gains amounted to a whopping 9.7%, its best performance since 2008.
    However, the South Korean won, along with the Indonesian rupiah,
slipped as investors dumped the countries' bonds in favour of U.S. debt. 
    The dollar index held on to its biggest gain in more than two months as
Treasury yields climbed more than 1% after a Democrat victory to control
the Senate on Wednesday raised hopes of more fiscal stimulus.
    The rupiah, which underpins one of Asia's most popular bond markets for foreign
investors, eased 0.6%. Indonesian 10-year benchmark yields were up 9.9
basis points at 6.13%, their highest since Nov. 24.
    "The rebound in the dollar overnight, helped in part by rising U.S. bond yields,
has seen Asian currencies open weaker today," said Khoon Goh, head of Asia research at
    However, analysts expect this bounce in the dollar to be temporary, banking on
vaccine rollouts to support economic growth in Asia and appreciation in the currencies.
    The Singapore dollar, Malaysia's ringgit and the Thai baht
recovered from session lows to trade 0.1% to 0.2% weaker by midday.
    ** The most liquid 3-year Korean treasury bond yield rose by 1.7 basis points to
    ** Taiwan's dollar surged 1.6% 
    ** Top gainers on the Singapore STI include Jardine Cycle & Carriage Ltd
, up 4.9%, and DBS Group Holdings Ltd, up 4.4% 
  Asia stock indexes and currencies at                                                 
 0658 GMT                                                                    
 Japan                             -0.10     -0.64                     2.36        2.53
 China                             +0.18     +0.96                    -0.24        2.72
 India                             +0.00     -0.35                     1.02        2.14
 Indonesia                         -0.64     +0.43                     1.67        4.64
 Malaysia                          -0.07     -0.45                    -0.26       -1.75
 Philippines                       +0.13     -0.06                     2.39        2.10
 S.Korea                           -0.23     -0.33                     3.97        9.70
 Singapore                         -0.05     -0.33                     2.46        4.74
 Taiwan                            +1.60     +1.80                     1.64        4.96
 Thailand                          -0.20     -0.33                     1.62        6.14

 (Reporting by Anushka Trivedi in Bengaluru; editing by Uttaresh.V)