EMERGING MARKETS-China, Indonesia lead Asian stocks lower as U.S. yields rise again

    * Malaysia leaves interest rates unchanged at 1.75%
    * China stocks fall over 2%; Taiwan, S.Korea closed over 1%
lower

    By Nikhil Nainan
    March 4 (Reuters) - China and Indonesia led a sell-off in
Asia's emerging stock markets on Thursday as U.S. Treasury
yields rose again, raising renewed doubts about continued
monetary support and global growth.
    Global bond yields have risen in recent weeks, with markets
concerned that central bankers could tighten the monetary spigot
as the global economy rebounds from the damage caused by the
COVID-19 pandemic. That prospect hit world equities last week.
    Stocks in Jakarta and Manila fell further by
afternoon, dropping close to 1% each. Equities in Taiwan
, China and South Korea were the worst
performers. 
    Benchmark U.S. 10-year yields were at 1.47% in
Asian trade. That was off the one-year high of 1.61% seen last
week. 
    "While not quite reaching the recent high..., we think that
inflation worries are getting entrenched," analysts at DBS said.
    But, they said, Asian markets were less vulnerable to global
market volatility than they were in 2013, when bond investors
threw a "tantrum" after hints the U.S. Federal Reserve might
slow the money-printing presses.
    DBS analysts were recommending "extending Asian credit
exposure on dips" as a result.
    In Malaysia, the central bank kept its key interest rate at
1.75%, as expected, with the ringgit unchanged lower at
0.1%. 
    Bank Negara Malaysia said the rollout of COVID-19 vaccines
will lift sentiment and boost economic activity going forward. 
    Stocks in Kuala Lumpur were down 0.3%, while 10-year
bond yields edged 1.5 basis points higher to 3.105%.
    Indonesia's rupiah - which backs some of the
highest-yielding emerging market debt - fell 0.3%.
    Fed Chair Jerome Powell is due to speak later in the day,
with investors waiting to see if he addresses rising yields. 
    Another key event is China's annual parliamentary gathering
that will take place on Friday. The government is expected to
set the country's macroeconomic policy targets at the meeting. 

 HIGHLIGHTS:
    ** Indonesian 10-year benchmark yields up 4.6 basis points
to 6.616%
    ** Malaysia's 3-year benchmark yield up 3.9 basis points at
2.027%
    ** Singapore shares edged higher, led by Jardine
Matheson Holdings Ltd and top bank DBS Group Holdings
Ltd
  Asia stock indexes and currencies at 0704 GMT
 COUNTRY      FX RIC       FX       FX     INDEX    STOCKS   STOCKS
                           DAILY %  YTD %           DAILY %  YTD %
 Japan                     -0.12    -3.62           -2.13    5.41
 China                     +0.01    +0.94           -2.32    0.60
 India                     +0.09    +0.58           -0.75    8.23
 Indonesia                 -0.28    -1.68           -0.95    5.64
 Malaysia                  -0.12    -0.84           -0.45    -2.82
 Philippines               -0.08    -1.13           -0.87    -3.60
 S.Korea                   -0.43    -3.46           -1.28    5.92
 Singapore                 +0.08    -0.78           0.27     5.80
 Taiwan                    +1.48    +2.29           -1.88    7.97
 Thailand                  -0.13    -1.25           -0.38    6.08
    

 (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Ana
Nicolaci da Costa and Uttaresh.V)