EMERGING MARKETS-Indonesia shares pare gains on disappointing GDP data; Indian holds rate

    * Graphic: World FX rates
    * Indonesia's Q4 GDP shrinks more than expected
    * Indian holds rates
    * Most currencies weaker as USD heads for best week in 3

    By Shruti Sonal
    Feb 5 (Reuters) - Indonesian shares erased some early gains
on Friday after the economy shrank slightly more than expected
in the fourth quarter, while the Indian rupee strengthened
against the dollar after the central bank kept rates on hold. 
    The Jakarta benchmark, which had added as much as
0.7% in early trade, retraced to be up only 0.1% by 0407 GMT. 
    Gross domestic product in Southeast Asia's largest economy
fell slightly more than expected in the fourth quarter, leading
to its first full-year contraction in over two decades as it
struggled with the fallout of the COVID-19 pandemic.

    ING analysts expect Indonesia's GDP to continue to contract
in the first quarter of 2021 and see the Bank Indonesia keeping
the door open for further easing, with recent weakness in rupiah
 the main impediment to further rate cuts.
    In India, the rupee slightly strengthened after the
central bank held its key rates steady in a widely expected move
and reiterated its support for economic recovery by ensuring
ample rupee liquidity in the banking system.
    Shares retreated slightly from all-time highs after
the announcement and were trading up 0.4% up.
    Measures to cap rising bond yields in the wake of a
higher-than-expected fiscal deficit announced earlier in the
week are likely to be "critical watchpoints", said Lakshmi Iyer,
Chief Investment Officer of Debt and Head of Products at Kotak
Mahindra Asset Management.
    Thai and Philippine benchmarks edged 0.7%
higher each, in line with gains in broader markets following a
strong finish on Wall Street overnight as progress in vaccine
distribution prompted bets on further normalisation in the
global economic recovery.
    Thai shares were on track to post a 2% weekly gain, after
three consecutive weeks in the red.
    The country's health minister said on Thursday that the
tourism-reliant country will import the first doses of
AstraZeneca's vaccine from Asia after Europe enforced export
    In the Philippines, annual inflation accelerated faster than
expected to hit the highest level in two years in January,
limiting the central bank's room for further interest rate cuts
at its meeting next week.
    Most currencies in the region weakened as the dollar headed
for its best weekly gain in three months, supported by growing
confidence that the U.S. economic recovery will outpace global
    The Indonesian rupiah, Malaysian ringgit,
Singapore dollar and the Thai baht fell between
0.1% and 0.4%. 
    ** Thai Bev to sell 20% of beer business in blockbuster
Singapore IPO
    ** In the Philippines, top index gainers are LT Group Inc
, GT Capital Holdings Inc, Jollibee Foods
    ** Singapore's 10-year benchmark yield is down 2 basis
points at 1.066%
  Asia stock indexes and                              
 currencies at   0455 GMT                        
                     DAILY  YTD %     X   DAILY  S YTD
                         %                    %      %
 Japan               -0.01  -2.19  <.N2   1.33   4.64
 China    <CNY=CFX   -0.07  +0.80  <.SS    0.46   1.30
          S>                       EC>           
 India               +0.02  +0.17  <.NS    0.56   7.14
 Indones             -0.14  +0.07  <.JK    0.32   2.47
 ia                                SE>           
 Malaysi             -0.37  -1.28  <.KL   -0.23  -2.83
 a                                 SE>           
 Philipp             -0.04  -0.15  <.PS    0.90  -2.44
 ines                              I>            
 S.Korea  <KRW=KFT   -0.59  -3.46  <.KS    0.33   7.81
          C>                       11>           
 Singapo             -0.10  -1.29  <.ST    0.04   2.21
 re                                I>            
 Taiwan              +1.53  +1.89  <.TW    0.69   7.35
 Thailan             -0.23  -0.50  <.SE    0.71   3.04
 d                                 TI>           
 (Reporting by Shruti Sonal in Bengaluru; editing by Richard