* Graphic: World FX rates tmsnrt.rs/2RBWI5E
* Indonesia benchmark bond yields up ~38 bps this week
* Rupiah may stay subdued for a while - DBS analyst
* S. Korea shares, won rebound to close up
* Indian currency markets shut
By Anushka Trivedi
Feb 19 (Reuters) - The Indonesian rupiah hit a three-week
low on Friday as investors dumped the country's bonds after an
interest rate cut amid a dour economic outlook and rising U.S.
yields, while most Asian stocks and currencies were headed for a
Benchmark U.S. Treasury yields returned to a
near one-year high hit earlier this week, putting pressure on
riskier Asian stocks and currencies across the board.
A subdued greenback failed to lift the Thai baht
, the Malaysian ringgit and Singapore's dollar
as they traded flat to lower on the day. Their respective
stock exchanges, and were on track to
shed 0.5% to 1.5% for the week.
The rupiah fell 0.4%, off about 1.6% from its
Tuesday's high, as a crippling COVID-19 infection wave led Bank
Indonesia (BI) to trim rates by 25 basis points (bps) the
previous day and downgrade its economic growth forecast for
Indonesia's bonds, favoured by foreign investors for their
high yields, also suffered the brunt of rising U.S. yields and
in turn pressured the rupiah.
"Markets are looking past BI's rate cut and are focusing on
the uptick in U.S. Treasury yields," said Wei Liang Chang, a
macro strategist at DBS Bank.
"With equity risk appetite softening and U.S. yields staying
firm, the rupiah could stay on the back foot, with sentiment
further dampening after BI trimmed its growth expectations for
Indonesian 10-year benchmark yields were up 9.1
basis points to 6.624%, their highest since early November. The
yields have jumped about 38 bps so far this week.
A bright spot in markets, South Korea's stocks and
won rebounded to close higher as the government
mulled a fifth round of COVID-19 cash handouts.
Indian currency markets were closed for a holiday,
while shares fell 0.3% on profit-taking in lenders.
** Rupiah ends about 0.6% weaker for the week
** Top losers on the Singapore STI include: Jardine
Matheson Holdings Ltd down 3.9% and Keppel DC REIT
** In the Philippines, top index gainers are: Aboitiz Equity
Ventures Inc up 3.8% and Ayala Corp up 3.1%
Asia stock indexes and currencies at 0746 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD %
Japan +0.05 -2.24 -0.72 9.38
China +0.38 +0.99 0.57 6.42
India 0.00 +0.57 -0.35 7.76
Indonesia -0.39 -0.18 0.33 4.04
Malaysia -0.07 -0.57 0.22 -2.95
Philippines -0.02 -0.89 1.12 -2.99
S.Korea +0.15 -1.78 0.68 8.15
Singapore +0.03 -0.35 -0.99 1.28
Taiwan +1.35 +1.90 -0.51 10.92
Thailand +0.03 -0.13 -0.82 3.41
(Reporting by Anushka Trivedi in Bengaluru; Editing by Krishna