EMERGING MARKETS-Asian markets lifted by improved risk appetite, U.S. dollar retreat

    * Singapore leads gains in Southeast Asia 
    * U.S. inflation rose more than expected in July 
    * Malaysia releases GDP data on Friday 

    Aug 13 (Reuters) - Asia's currencies and stock markets rose
on Thursday as investors took comfort after U.S. data dispelled
concerns about deflation in the world's largest economy, while a
U.S. stalemate over further fiscal stimulus hit the U.S. dollar.
    The greenback fell against most of its peers amid fading
hopes for a compromise between Republicans and Democrats over
more economic stimulus.
    Taiwan's dollar rose almost half a percent,
outperforming other Asian currencies, while Singapore's Straits
Times Index led gains among regional stock markets.
    The cononavirus pandemic has continued to buffet financial
markets, as investors balance tentative signs of global economic
recovery and promising vaccine developments with second waves of
outbreaks which have triggered fresh restrictions.
    U.S. data on Wednesday showing consumer prices rising more
than expected in July also underpinned appetite for some riskier
assets on Thursday.
    "Two big themes colluded to render the 'risk on' markets,"
said Mizuho Bank in a research note.
    "First, outright optimism on several fronts of the
pandemic... Second was the unexpectedly large upswing in U.S.
inflation that appeared to have signs of demand recovery."
    Thailand reopened following a holiday on Wednesday, with
equities up 0.8% and the baht marginally higher.
    Kuala Lumpur stocks also gained strongly, rising
    Malaysia's ringgit and South Korea's won
gained around 0.1% against the U.S. dollar.
    The greenback has been on the rise in August following
months of declines, but it also fell on Thursday in tandem with
U.S. Treasury yields after strong demand for a record $38
billion auction of 10-year notes.
    Malaysia will publish its second quarter gross domestic
product numbers on Friday, and is expected to show a contraction
for the first time in more than a decade.
    ** Top gainers in Singapore include Genting Singapore Ltd
, Jardine Strategic Holdings Ltd and Sembcorp
Industries Ltd 
    ** Malaysia GDP likely fell 10% in April-June
    ** Indonesian 3-year benchmark yields down 1.9
basis points to 5.239%  
            Asia stock indexes and currencies at 0621 GMT
 COUNTRY       FX RIC      FX       FX     INDEX    STOCKS   STOCKS
                           DAILY %  YTD %           DAILY %  YTD %
 Japan                       +0.26  +1.88              1.78   -1.72
 China                       -0.04  +0.32              0.16    8.99
 India                       +0.01  -4.60              0.36   -6.74
 Indonesia                   -0.20  -5.67              0.10  -16.84
 Malaysia                    +0.07  -2.36              0.85   -1.19
 Philippines                 +0.20  +3.73              1.71  -21.98
 S.Korea                     +0.08  -2.36             -0.29   10.36
 Singapore                   +0.07  -1.95              1.33  -19.41
 Taiwan                      +0.45  +2.37              0.73    6.38
 Thailand                    +0.10  -3.61              0.75  -14.75
 (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Ana
Nicolaci da Costa)

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