EMERGING MARKETS-Robust rallies in Singapore, Indonesia push Asian equities higher

By Rishav Chatterjee

July 21 (Reuters) - Equities in Singapore climbed for an 11th consecutive session on Monday, driven by a rush into its high-yield stocks, while Indonesian shares matched the streak as investors cheered its trade deal with the United States.

An MSCI gauge of stocks in emerging Asia .MIMS00000PUS touched their highest since mid-November 2021, while a subset of equities in ASEAN countries .MISU00000PUS, dominated by Singapore, jumped to an over 9-month peak.

Singapore's benchmark .STI scaled to a new intraday all-time high for the 14th consecutive session, last trading at a record level of 4,225.79 points, with strong inflows into high-dividend industrials, telecom and safe-haven driving the rally.

Southeast Asia's largest bank, DBS DBSM.SI, and defence firm, ST Engineering STEG.SI, last traded at record highs, while Singapore Airlines SIAL.SI rose to its highest in two years and telecom Singtel STEL.SI hit a near nine-year peak.

In Indonesia, the benchmark .JKSE jumped 1%, and was on track to close at its highest since mid-December last year. The index has clocked gains for the 11th straight day, on hopes of monetary easing and a favourable tariff deal with the U.S.

Maybank economists expect further cuts of 50 basis points with risks skewed to more easing, depending on Indonesian rupiah stability.

Elsewhere in emerging Asia, stocks in Manila .PSI added 0.6%, while those in Bangkok .SETI erased early 1% gain to trade marginally lower in the afternoon trade. The index clocked a 7.6% rise last week, driven by hopes of monetary easing.

In Thailand, the focus is now on the appointment of a new central bank governor. Reports suggest that Finance Minister Pichai Chunhavajira favors Vitai Ratanakorn, widely seen as dovish.

Investors are in wait-and-see mode and are also looking to take profit from a strong rally last week, said Poon Panichpibool, markets strategist at Krung Thai Bank.

Broadly, market participants continue to keenly scrutinise tariff headlines ahead of an August 1 deadline to strike a deal with Washington.

Most regional currencies slid against the U.S. dollar: the Indonesian rupiah IDR= and the Philippine peso PHP= weakened about 0.2% each, while South Korea's won KRW=KFTC, Taiwan's dollar TWD=TP and Thai baht THB=TH slipped marginally.

An MSCI gauge of global emerging market currencies .MIEM00000CUS also declined, and has slipped more than 1% since hitting an all-time high on July 3.

HIGHLIGHTS

** China starts construction on world's largest hydropower dam in Tibet

** Indonesian 10-year benchmark yield ID10YT=RR falls 2.9 bps to 6.522%

** Singapore's 10-year benchmark yield SG10YT=RR slips to 2.070%