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EMERGING MARKETS-Indonesia, China, South Korea fall after Wall Street sell-off

    * Philippine Q4 GDP shrinks slightly less than expected
    * Vietnam shares plunge most since 2001
    * Graphic: World FX rates tmsnrt.rs/2RBWI5E
    * Asian stock markets: tmsnrt.rs/2zpUAr4

    By Nikhil Nainan
    Jan 28 (Reuters) - Indonesia, China and South Korea fell
around 2% and led sharp losses in Asia's emerging stock markets
on Thursday, tracking Wall Street's overnight sell-off.
    Stock markets in Taipei Singapore, Bangkok
 and Mumbai joined those in Seoul,
Jakarta and Shanghai in declining more than 1%. 
   
    U.S. stock suffered its biggest one-day percentage drop in
three months overnight pressured by the U.S. Federal Reserve's
latest statement, a slump in shares of planemaker Boeing Co
 and a selling of long positions by hedge funds.
    "Fear of the retail marauders seems to have spilled into
Asia this morning," Maybank analysts wrote in a note.  
    The U.S. Fed left interest rates unchanged, as widely
expected, and flagged a worrying slowdown in the pace of
recovery in the world's largest economy.
    The sharp drops in equities supported gains in safe-haven
dollar at the expense of regional currencies. The won
fell 1.4% against the greenback. The rupiah, which is
favoured by foreign investors looking to tap Indonesia's
high-yielding debt, fell 0.25%.     
    Bullish bets on Asian currencies that had been building in
recent months are now being trimmed, a Reuters poll found, as
the pace of the global recovery comes into question as COVID-19
cases continue to spread and cause disruption.
    A flood of cash from stimulus measures to counter the
economic damage from the pandemic have boosted shares in parts
of Asia and stretched valuations. South Korea has jumped nearly
7% this year, on top of the more than 30% jump last year.
    The Philippines, however, is the worst regional performer
this year, down about 4%, having lost nearly 9% last
year. 
    GDP data showed the Philippine economy shrank 8.3% in the
December quarter, slower than the 8.5% expected in a Reuters
poll. Stocks dipped 0.2% on Thursday.
    "With only a modest pickup in government outlays expected in
2021 and with the trade balance forecast to remain in deficit,
we do not see a stark pickup in economic activity," said
Nicholas Mapa, ING senior economist for the Philippines.
    Vietnam shares plunged 6.7%, their sharpest fall
since 2001.
    Malaysian markets were closed for a public holiday.
    
    HIGHLIGHTS:
    ** Indonesian 3-year benchmark yields are down 1.2 basis
points at 5.178%
    ** The big short: GameStop effect puts global bets worth
billions at risk       
 Asia stock indexes and currencies at 0641 GMT      
 COUNTRY      FX          FX       FX     INDEX    STOCKS   STOCKS
              RIC         DAILY %  YTD %           DAILY %  YTD %
 Japan                    -0.17    -0.99           -1.53    2.74
 China                    +0.02    +0.73           -1.84    1.00
 India                    -0.21    -0.01           -1.03    -1.13
 Indonesia                -0.25    -0.21           -2.03    0.10
 Malaysia                 -        -0.59           -        -2.86
 Philippines              -0.04    -0.21           -0.17    -4.03
 S.Korea                  -1.36    -2.98           -1.71    6.81
 Singapore                -0.27    -0.85           -1.16    2.84
 Taiwan                   +1.27    +1.64           -1.82    4.64
 Thailand                 -0.17    -0.20           -0.99    2.34
 

 (Reporting by Nikhil Kurian Nainan in Bengaluru; editing by
Richard Pullin and Amy Caren Daniel)
  
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