EMERGING MARKETS-Asian stocks climb over 1% on eve of U.S. election

    * Singapore, Taiwan, Thailand and China stocks climb over 1%
    * Malaysia's central bank expected to leave rates unchanged 
    * Markets eye poll lead for Biden in U.S. election - analyst

    By Nikhil Nainan
    Nov 3 (Reuters) - South Korea led gains across Asia's
emerging stock markets on Tuesday as improving global factory
activity data and expectations of a win for Joe Biden in the
U.S. presidential election boosted sentiment in China and other
regional markets. 
    Stocks in Singapore, Taiwan, Thailand
and Shanghai all gained over 1%, while Seoul
rose nearly 2%, driving the MSCI index of Asian shares ex-Japan
 up more than 1%.
    U.S. manufacturing activity accelerated more than expected
in October, following similar robust improvements in South Korea
and China on Monday, underpinning gains on Wall Street
overnight.
    A win for Democratic candidate Biden, who leads in the
polls, is expected to lead to a less combative stance on China
and steadier foreign and trade policy overall, all seen as
supportive for Asia's trade-reliant economies.
    "Markets have turned more positive as polls on the eve of
U.S. elections are still indicating a strong Biden lead over
Trump, reducing risks of an upset, unlike in 2016," said Wei
Liang Chang, a macro strategist at DBS Bank. 
    Currencies in the region also advanced slightly on the U.S.
dollar with Taiwan's dollar standing out with a 1%
rise, and the rupiah marginally higher at a two-month
high. 
    "Whether the Democrats or Republicans control the Senate
will also be watched by markets. A Blue (Democrat) sweep is
likely to underpin expectations of a large fiscal stimulus that
should buoy equities and pressure the dollar," Chang added.
    Indications of the election outcome should start to trickle
in during Asian trading hours on Wednesday. 
    Bucking the trend, Malaysian stocks dipped 0.2% and
the ringgit was flat ahead of a policy meeting later in
the day where Bank Negara Malaysia is expected to keep rates
unchanged at a record low of 1.75%.
    While many policymakers in emerging markets having called a
halt to a year of constant easing of policy, the Malaysian
economy is still struggling and markets will look to the meeting
for signs of more policy moves in the months ahead.
    Stocks were marginally higher in Manila as trading
resumed after a public holiday on Monday, recovering from early
losses after manufacturing activity in October fell below a
reading of 50, which indicates an expansion in activity.
    
    
    HIGHLIGHTS:
    ** Malaysia's 10-year benchmark yield up 0.6 basis points to
2.646%
    ** Indonesian 3-year benchmark yields down 1.5 basis points
to 5.289%
    ** Reuters Poll - FX markets to remain net short U.S. dollar
after election    
            Asia stock indexes and currencies at 0348 GMT
 COUNTRY      FX RIC       FX       FX     INDEX    STOCKS   STOCKS
                           DAILY %  YTD %           DAILY %  YTD %
 Japan                     -0.01    +3.71           -        -1.53
 China                     -0.02    +4.04           1.13     6.94
 India                     +0.00    -4.09           0.00     -4.10
 Indonesia                 +0.31    -4.80           0.64     -18.28
 Malaysia                  -0.02    -1.61           -0.16    -7.85
 Philippines               +0.04    +4.71           0.08     -19.02
 S.Korea                   -0.16    +1.85           1.64     6.38
 Singapore                 +0.03    -1.44           1.34     -23.18
 Taiwan                    +1.04    +5.23           1.17     6.18
 Thailand                  +0.16    -3.73           1.15     -23.03
 
 (Reporting by Nikhil Kurian Nainan in Bengaluru; editing by
Richard Pullin)