* Graphic: World FX rates tmsnrt.rs/2RBWI5E * U.S. dollar hits 1-week low * Indonesian shares eye 5-day rally * Vietnam markets closed from Feb. 10-16 By Shruti Sonal Feb 9 (Reuters) - Most emerging Asian stocks gained on Tuesday in line with a broader rally, as volumes remained thin ahead of the Lunar New Year holidays, while regional currencies strengthened against a weaker dollar. The dollar slid as doubts emerged about the scale of a recent rally, while Asian shares rose in thin trade after Wall Street reached record closing highs overnight. Investor optimism around U.S. stimulus measures and a vaccine rollout has underpinned demand for riskier assets in the region, said Sim Moh Siong, FX strategist at Bank of Singapore. The Thai baht, Malaysian ringgit and the Singapore dollar edged up about 0.2% each. Investors also looked to regional central banks to gauge their response to seasonal demand for cash ahead of the Lunar New year holidays. "With most of Asia shutting down for Lunar New Year, starting with Taiwan and Vietnam tomorrow, liquidity will steadily erode in Asia, where trading appears muted already today", said Jeffrey Halley, senior market analyst, at OANDA. "That will leave those markets that are still open, vulnerable to headline-driven, temporary volatility spikes". Demand for cash ahead of the Lunar New Year holidays drove Vietnam's overnight interbank rates to their highest since May 2020 on Monday. The country's central bank has injected some $1.6 billion in cash into the banking system over the past five trading days. Central banks in China and in Indonesia also injected liquidity into their financial markets last week ahead of the holidays. Analysts said COVID-19 disruptions have made it harder for regional central banks to gauge cash demand. "The cash injection is typically higher going into the Lunar New Year... but I think this is a bit special because of the pandemic, which is why we're seeing more volatility in the short-term interest rates", Siong said. "Central banks have a bit more difficulty in estimating cash demand because, unlike in the previous years, given that people cannot travel, visit each other and go out as much". Indonesian shares rose for a fifth straight session, extending a rally driven by the expansion of a COVID-19 relief budget last week. The Thai benchmark also increased for a fourth consecutive day, while India was on track for a seven-day rally. Highlights: ** Philippine lawmakers pass bill to tax online gambling firms ** Indonesian 3-year benchmark yields are up 3.6 basis points at 5.102% ** Top gainers on FTSE Bursa Malaysia Kl Index include Telekom Malaysia Bhd, MISC Bhd, Genting Bhd Asia stock indexes and currencies at 0449 GMT COUNTRY FX RIC FX FX YTD INDEX STOCKS STOCKS DAILY % DAILY YTD % % % Japan +0.36 -1.53 <.N22 0.04 7.13 5> China <CNY=CFX +0.00 +1.23 <.SSE 1.22 2.95 S> C> India +0.12 +0.27 <.NSE 0.39 8.53 I> Indones +0.00 +0.32 <.JKS 0.25 4.10 ia E> Malaysi +0.20 -0.86 <.KLS 0.61 -2.72 a E> Philipp +0.04 -0.06 <.PSI 0.81 -0.82 ines > S.Korea <KRW=KFT +0.43 -2.57 <.KS1 0.30 7.90 C> 1> Singapo +0.23 -0.66 <.STI 0.17 3.25 re > Taiwan +1.41 +1.74 <.TWI - 7.26 I> Thailan +0.23 +0.03 <.SET 0.38 5.02 d I> (Reporting by Shruti Sonal in Bengaluru; Additional reporting by Tom Westbrook; Editing by Ana Nicolaci da Costa)
EMERGING MARKETS-Most Asian stocks, currencies gain in thin trade ahead of Lunar New Year holiday
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