* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Rupiah set for worst day since July 15
* Baht snaps five-day winning streak
* Manila shares hit near one-month low
By Shashwat Awasthi
Sept 2 (Reuters) – Indonesia’s central bank stepped in to ease pressure on the rupiah on Wednesday as it hit a two-week low on the back of concerns that a proposed new framework for monetary policymaking could undermine the bank’s independence.
With moves across many of Asia’s stock and currency markets limited, the Thai baht THB=TH also stood out with a half percent fall after finance minister Predee Daochai resigned less than a month into the job, sparking worries amid the government’s efforts to shore up the tourism-reliant economy. rupiah , dogged by worries over economic slowdown, debt and a difficult policy mix, came off its session lows but was still 1.3% lower amid worries around the central bank’s autonomy.
An advisory panel to the Indonesian government had on Monday proposed the biggest shake-up in monetary policy decision-making in two decades, including a call for ministers to be given voting rights at Bank Indonesia (BI) policy meetings.
Indonesian President Joko Widodo’s assurances on Tuesday that BI would remain independent did little to ease concerns among foreign investors. Halley, an analyst at trading platform OANDA, said the proposal introduced the threat of politics interfering with independent monetary policy and would be “a retrograde step from the perspective of international investors.”
Among stocks, Philippines’ main index fell for a fifth straight session and was down 1% amid concerns that rising coronavirus cases and new curbs in the capital will weigh further on the economy.
“The extension of restrictions in an area that represents about more than 50% of the country’s economy has fuelled the continuation of the PSEi’s slide,” said Ruben Asuncion, chief economist at Union Bank of the Philippines.
** Indonesian 10-year benchmark yields are up 3.4 basis points at 6.898%
** In the Philippines, top index losers are Ayala Land down 4.59%, Ayala Corp down 2.54% and BDO Unibank down 2.11%
** Top gainers on FTSE Bursa Malaysia Kl Index include PPB Group up 2.93%, Sime Darby up 2.26% and MISC Bhd up 2.25%
Asia stock indexes and currencies at 0650 GMT
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