Feb 2 (Reuters) - Asian stocks rose on Tuesday as signs of
progress in U.S. stimulus talks boosted Wall Street overnight,
while Indian shares posted strong gains for a second consecutive
session after the unveiling of a high-spending 2021/22 budget.
    South Korean and Taiwanese equities were
among the top performers in the region. They rallied more than
1% and 2% respectively, driven higher by heavyweight chip makers
and other electronics manufacturers.
    U.S. stock markets rose overnight, led by technology shares,
as President Joe Biden held talks with Republican senators to
strike a deal on his $1.9 trillion COVID-19 relief plan, which
the White House said was 'productive'.
    Regional currencies, however, were subdued as the dollar
index hovered around its overnight high of 91.063, its
highest since Dec. 10. 
    India's blue-chip Nifty 50 index held onto opening
gains of 2%. It rallied 5% on Monday - its biggest daily rise on
a federal budget day in over two decades - after the government
unveiled an expansionary budget with high capital spending. 
    Benchmark 10-year bond yields extended a recent
rise to stand 6.5 basis points (bps) higher on the day at
6.125%. Yields rose 13 bps on Monday after the government
unveiled a bigger-than-expected budget deficit and additional
borrowing in its 2021/2022 budget on Monday.
    The rupee traded marginally firmer at 72.975, after
weakening as far as 73.15 per dollar on Monday.
    The Reserve Bank of India (RBI) is widely expected to hold
interest rates steady when it announces its monetary policy
decision on Friday, although cooling inflation in December has
fuelled some talk of a rate cut this week.
    Analysts at TD Securities, who expect the RBI to cut rates
on Friday, said the central bank's plans for its open market
operations (OMO) will be in focus after a recent bond sell-off
pushed government bond yields higher.
    "We think the RBI, alongside cutting rates, will try to
limit any increase in bond yields via significant OMO
operations," the analysts said. "We also think the front end of
the curve will likely see a decline in the wake of a surprise
rate cut at this week's meeting."
    Thai shares edged up ahead of Bank of Thailand's
policy meeting on Wednesday. The central bank is widely expected
to leave its key rate unchanged at a record low, preserving
limited policy ammunition as the economy deals with its latest
wave of coronavirus infections.
    ** Top gainers on the Singapore STI include Keppel
Corporation Ltd up 3.27% and ATS Ltd up
    ** In the Philippines, top index gainers are Robinsons Land
Corp up 4.61% and Universal Robina Corp up
    ** Indonesian 10-year benchmark yields are down 3.7 basis
points at 6.182%​​ while 3-year benchmark yields are down 4.6
basis points at 5.056%​​ 
  Asia stock indexes and                              
 currencies at   0817 GMT                        
                     DAILY  YTD %     X   DAILY  S YTD
                         %                    %      %
 Japan               -0.06  -1.65  <.N2    0.97   3.34
 China    <CNY=CFX   +0.14  +1.07  <.SS    0.81   1.75
          S>                       EC>           
 India               +0.08  +0.14  <.NS    2.33   4.52
 Indones             -0.07  +0.14  <.JK   -0.39   1.08
 ia                                SE>           
 Malaysi             -0.10  -0.59  <.KL    0.45  -3.31
 a                                 SE>           
 Philipp             +0.06  -0.04  <.PS    0.78  -3.81
 ines                              I>            
 S.Korea  <KRW=KFT   -0.11  -2.82  <.KS    1.32   7.77
          C>                       11>           
 Singapo             +0.11  -0.77  <.ST    0.47   2.32
 re                                I>            
 Taiwan              -0.01  +0.34  <.TW    2.27   6.97
 Thailan             -0.03  -0.07  <.SE    0.47   2.46
 d                                 TI>