EMERGING MARKETS-Jakarta stocks at 10-mth high on tax bill passage, broader Asia gains

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    * Philippine stocks eye best day since Aug. 25
    * Broader Asian equities track global rally
    * RBI rate decision, U.S jobs data awaited 

    By Harish Sridharan
    Oct 8 (Businesshala) - Indonesian shares hit their highest since
January on Friday, a day after the country passed a major tax
overhaul bill aimed at boosting revenue, while Chinese equity
markets rose on their return from a one-week holiday. 
    Asia's emerging market stocks benefited from a rise in
global risk appetite as Washington approved legislation to
temporarily raise the debt limit and avert a default.

    Regional currencies, however, weakened as benchmark U.S
Treasury yields firmed to their highest since June ahead of a
key jobs report in the United States. 
    "The risk-on tone pervading across Asia is driven largely by
the development on the U.S. budget deficit," said Nicholas
Antonio Mapa, senior economist at ING.  
    Jakarta shares rose as much as 1.3% after the
country's parliament approved a law for one of its most
ambitious tax overhauls, including raising value-added tax (VAT)
next year, a new carbon levy and cancelling a planned corporate
tax cut.
    Analysts at Mizuho noted that there will be some short-term
impact from the tax overhaul, especially from the increase in
VAT, which will push inflation higher while slowing private
consumption. 
    "More fundamentally, these changes are a step in the right
direction as they help broaden Indonesia's relatively narrow tax
base," they added.  
    Stocks in Manila rallied and were on course to notch their
best session in six weeks, while Malaysia, Thailand
 and Singapore also edged higher. 
    Indian shares rose ahead of the country's central
bank meeting, where policymakers are widely expected to keep the
repo rate unchanged to support recovering growth.
    Market participants were also closely watching out for U.S
jobs data, which could provide fresh clues into the Federal
Reserve's tapering timeline.
    Chinese equities rose 0.3% on their return from a
week-long hiatus, with tourism stocks adding 4.2%
and leading the way in the domestic bourse. 
    Still, the focus remains on the property sector as investors
wait to see if regulators take action to contain the contagion
from cash-strapped Evergrande's debt crisis.
    Meanwhile, currencies in Asia traded flat to lower, with the
South Korean won and Thai baht leading
losses in the region.    
    
    HIGHLIGHTS
    
    ** Indonesian 10-year benchmark yields are up 1.7 basis
points at 6.345%
    ** In the Philippines, top index gainer was BDO Unibank Inc
, up 5.17% 
    ** Top gainer on the Jakarta stock index was
Pudjiadi And Sons Tbk PT, up 24.83%
    
    
  Asia stock indexes and currencies at 0412 GMT
 COUNTRY      FX RIC           FX  FX YTD    INDEX  STOCKS  STOCKS
                          DAILY %       %            DAILY   YTD %
                                                         %  
 Japan                      -0.24   -7.71             1.81    2.68
 China                      -0.02   +1.23             0.33    3.08
 India                      +0.00   -2.29             0.43   27.79
 Indonesia                  -0.08   -1.31             0.88    8.26
 Malaysia                   +0.05   -3.83             0.29   -3.77
 Philippines                +0.14   -4.80             1.37   -1.30
 S.Korea                    -0.26   -8.99            -0.13    2.86
 Singapore                  +0.01   -2.72             0.13    9.19
 Taiwan                     -0.18   +1.71            -0.40   12.99
 Thailand                   -0.35  -11.62             0.33   13.09
 


    
 (Reporting by Harish Sridharan; editing by Richard Pullin)
  
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