EMERGING MARKETS-Dim recovery prospects dent won; stocks gain on COVID-19 treatment hopes – Reuters

* Graphic: World FX rates tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks tmsnrt.rs/3f2vwbA * Indonesian rupiah, Taiwan dollar sole gainers among AsiaFX * Indian shares on track for a second straight day of gains * S. Korean end up more than 1% By Shriya Ramakrishnan Aug 24 (Reuters) - The South Korean won was the worst hitamong Asian currencies as the dollar steadied on Monday, whilestock markets across the region clocked modest gains on hopesfor a potential COVID-19 treatment. Some of the foreign exchange market's big players have begunto suggest the dollar's slide since May may be overdone andupbeat U.S. data on Friday along with signs of progress oncoronavirus vaccines reinforced that view. The Thai baht, Singapore dollar andMalaysian ringgit were all flat to lower against thedollar. "Clearly the unequivocal bearish USD theme has beensurrendered to underlying uncertainties (virus resurgence aswell as U.S.-China conflict)," analysts at Mizuho Bank said in anote. In South Korea, the won slid as much as 0.5%before regaining some ground, after its central bank chiefwarned that a recent surge in COVID-19 infections within thecountry will likely weaken economic recovery. Shares in Seoul, however, closed 1.1% higher, helpedby gains in pharmaceutical stocks. The week is set to be dominated by the U.S. FederalReserve's annual Jackson Hole conference which begins onThursday in a virtual form. Investors have been eagerly awaiting details on possiblechanges to how the Fed targets inflation. While global investors cheered the U.S. drug regulator'sauthorisation of the use of blood plasma from recovered patientsas a COVID-19 treatment option, concerns about a continued spikein infections capped gains. Manila's benchmark stock index fell more than 1%,while Malaysian shares were down 0.5%. Foreign investors have pulled out $1.62 billion worth ofPhilippine equities year-to-date, the biggest outflow since atleast 11 years for the same period. The Philippines reported its smallest daily rise in newcoronavirus infections in nearly four weeks on Sunday, but thenationwide tally was still the highest in Southeast Asia. India's blue-chip NSE Nifty 50 index was set for asecond straight day of gains, even as domestic virus casescrossed 3 million. Reserve Bank of India (RBI) Governor Shaktikanta Das warnedon Friday that India's stock market, which has reboundedsignificantly from multi-year lows in March, was not in syncwith the real economy and would likely see a correction althoughhe could not say when. HIGHLIGHTS: ** Malaysia's 10-year benchmark yield is up 2.3 basis pointsat 2.556%, while its 3-year benchmark yield is up 2 basis pointsat 1.842% ** Top losers on FTSE Bursa Malaysia Kl Indexinclude IHH Healthcare Bhd down 3.23% at 5.4 ringgit;PETRONAS Chemicals Group Bhd down 2.93% at 5.96ringgit; Hartalega Holdings Bhd down 2.37% at 17.32ringgit ** Top losers on the Singapore STI include: ThaiBeverage PCL down 1.61% at S$0.61; Oversea-ChineseBanking Corp Ltd down 0.69% at S$8.62; YangzijiangShipbuilding Holdings Ltd down 0.54% at S$2.77 Asia stock indexes and currencies at 0718 GMT COUNTRY FX RIC FX FX INDEX STOCK STOCKS DAILY YTD % S YTD % % DAILY % Japan -0.08 +2.60 <.N225 0.28 -2.84 > China > India +0.07 -4.56 <.NSEI 0.88 -5.73 > Indonesi +0.31 -5.74 <.JKSE 0.04 -16.26 a > Malaysia +0.07 -2.08 <.KLSE -0.51 -1.23 > Philippi +0.12 +4.28 -1.03 -23.95 nes S.Korea > Singapor +0.04 -1.88 0.58 -21.09 e Taiwan +0.45 +2.47 <.TWII 0.31 5.42 > Thailand +0.00 -5.14 <.SETI 0.76 -17.14 > (Reporting by Shriya Ramakrishnan in Bengaluru; Additionalreporting by Gaurav Dogra; Editing by Shailesh Kuber)

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EMERGING MARKETS-Dim recovery prospects dent won; stocks gain on COVID-19 treatment hopes - Reuters