REFILE-EMERGING MARKETS-Singapore slump, China tensions weigh as COVID cases surge

 (Corrects dateline to July 14 from June 8)
    * Graphic: World FX rates
    * Graphic: Foreign flows into Asian stocks
    * Singapore shares down for a third straight session
    * U.S. stock futures steady after Monday falls

    By Shriya Ramakrishnan
    July 14 (Reuters) - Asia's emerging markets recovered from
session lows on Tuesday as U.S. stocks futures steadied in early
trading, but a continued spike in global coronavirus infections
and diplomatic tensions between China and the United States kept
a lid on gains.
    Shares in Singapore edged down 0.2% after losing as
much as 1% earlier, with gains in the consumer sector countering
weakness in real estate and banking stocks following data
showing a 41% plunge in second quarter gross domestic product. 

    "Finance companies are particularly hit hard by the GDP data
because of what it means for longer-term yields. Doubts over
economic health can shrink returns banks make from loans," said
Daniel Dubrovsky, an analyst with DailyFX. 
    Yields on Singapore's 30-year government bonds
fell about 1.8 basis points to 1.228%. They are still up around
16 basis points since late May. 
    While Singapore's debt market is often perceived as a safe
haven for capital, demand for its government bonds has dried up
as investors sought out higher yields in other Southeast Asian
markets including Indonesia and the Philippines.
    South Korean shares gave up early losses to end
marginally lower, while Thai shares also regained some
ground from a 1.2% drop earlier in the day.
    Asian markets had taken their early lead from a selloff on
Wall Street overnight, which accelerated on news of new
restrictions in California and growing tensions between
Washington and Beijing over territorial claims in the South
China Sea.
    Worries over an economic rebound bogged down Indian shares
, which fell over 1.5% as many states and cities
tightened restrictions again following a surge in domestic
coronavirus cases.
    The rupee weakened 0.3% against the dollar.
    The Taiwan dollar was the sole outlier among Asian
currencies, gaining 0.4% against the greenback. 
    Taiwan's financial regulator held an emergency meeting last
week with major banks to discuss the soaring currency due to
concern from exporters and the highest levels of government,
sources with direct knowledge told Reuters.
    The currency has strengthened 2.1% against the U.S. dollar
this year, with the central bank intervening daily to try and
prevent it rising further, according to bankers. 
    ** Top losers on the Singapore STI include SATS Ltd
 down 2.16% at S$2.72; Hongkong Land Holdings
down 1.48% at S$3.99; Singapore Technologies Engineering Ltd
 down 1.22% at S$3.23   
    ** Top losers on Thailand's SETI include MFC-Nichada
Thani Property Fund 2 down 13.89% at 3.72 baht;
Surapon Foods PCL down 13.28% at 5.55 baht   
    ** Indonesian 3-year benchmark yields are down 5.8 basis
points at 5.894%​​
  Asia stock indexes and                                        
 currencies at   0714 GMT                                  
                             %       %            DAILY %  S YTD
 Japan                   +0.00   +1.26              -0.87  -4.52
 China     <CNY=CFXS     -0.22   -0.71              -0.80  11.99
 India                   -0.29   -5.34              -1.65  -12.6
 Indonesi                -0.14   -3.41               0.10  -19.5
 a                                                             3
 Malaysia                -0.14   -4.19               0.34   1.46
 Philippi                -0.24   +2.22               0.00  -21.0
 nes                                                           2
 S.Korea   <KRW=KFTC     -0.40   -4.09              -0.11  -0.64
 Singapor                -0.23   -3.50              -0.18  -18.5
 e                                                             1
 Taiwan                  +0.35   +2.12              -0.02   1.77
 Thailand                -0.48   -5.11              -0.44  -15.4
 (Reporting by Shriya Ramakrishnan in Bengaluru; editing by
Patrick Graham)