* Philippine stocks edge higher after sharp fall on Monday
* U.S. 10-year Treasury yield see a small pullback
* Federal Reserve's two-day meeting starts later in the day
March 16 (Reuters) - South Korea, China and India led Asia's
emerging stock markets higher on Tuesday following a rally in
Wall Street, although gains were capped ahead of the two-day
U.S. Federal Reserve policy meeting.
Stock market gains were largely subdued at below half a
percent, with only South Korea adding more.
Currencies in the region were flat to slightly higher as the
dollar stood firm despite a small pullback in the U.S. benchmark
10-year Treasury yield.
While the yields were at 1.59%, off 13-month
highs of 1.64% hit on Friday, another spike could sap appetite
for Asia's higher-yielding currencies and bonds.
Investors are keeping an eye out on any commentary from U.S.
monetary policymakers on the recent run-up in yields, which have
risen on bets of faster growth and inflation.
OCBC analysts said gains in Asia may be limited ahead of the
Federal Open Market Committee's meeting later in the day. They
said yield on the benchmark U.S. Treasury note could test 1.7%
"should Powell fail to push back on the increases in yields."
By late afternoon, Philippine shares gave up most of
their earlier gains and were last up 0.1%. It follows a sharp
fall on Monday when a surge in COVID-19 cases prompted new curbs
and renewed worries that the economic recovery would be hit.
China and India, both recovering from falls
on Monday, rose 0.4% each.
The central banks of Indonesia and Taiwan will hold their
policy meetings after the Fed statement, which is expected on
Thursday morning during Asia hours. Both are expected to keep
their key rates unchanged.
The rupiah, flat on Tuesday, has lost more than 3%
since Feb. 16, while the benchmark 10-year government bond yield
has fallen close to 50 basis points to 6.762%.
Singapore shares edged higher on Tuesday.
Total employment in the city-state shrank the most in more
than two decades in 2020, data showed, with foreigners' jobs
accounting for most of the decline.
HIGHLIGHTS:
** Indonesian 10-year benchmark yields up 0.4 basis points
to 6.762%
** Aboitiz Equity Ventures, Bank of the Philippine Islands
and Ayala Corp led the early gains
** Malaysian palm oil producer FGV jumps nearly 29% after
surviving Felda's bid
Asia stock indexes and currencies at 0639 GMT
COUNTRY FX RIC FX FX INDEX STOCKS STOCKS
DAILY % YTD % DAILY % YTD %
Japan -0.02 -5.41 0.52 9.03
China +0.04 +0.47 0.39 -1.15
India -0.01 +0.81 0.37 7.18
Indonesia +0.03 -2.43 0.01 5.79
Malaysia +0.00 -2.19 -0.01 -0.39
Philippines -0.07 -1.10 0.10 -8.13
S.Korea +0.58 -3.85 0.70 6.74
Singapore +0.11 -1.75 0.07 9.29
Taiwan -0.03 +0.82 0.39 10.73
Thailand +0.03 -2.44 0.38 8.45
(Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by
Richard Pullin and Arun Koyyur)