EMERGING MARKETS-Malaysia stocks, ringgit fall ahead of c.bank meeting; rupiah up

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E * BNM seen holding rates, providing fiscal support * Increase in virus cases in Asia to dent FX appeal - analyst * Rupiah at seven-week high By Anushka Trivedi May 6 (Reuters) - Malaysian shares dropped 1% to a six-month low and the ringgit eased on Thursday after COVID-19 curbs were imposed in the capital Kuala Lumpur and as investors awaited the country's central bank rate decision due later in the day. Other Asian stock markets including those of the Philippines , Indonesia and Taiwan slid around 0.3%, as sentiment was soured by a drop in Chinese shares which resumed trading after holidays this week. Malaysia shares slid and the ringgit fell 0.2% as Kuala Lumpur's two-week curbs added to lockdowns already in place in economically prosperous regions of the country amid a resurgence in coronavirus infections. Bank Negara Malaysia (BNM) is set to meet for a policy review later in the day and is expected widely to keep the benchmark rate at a record low of 1.75% but take measures to offset the economic slump. "After the extension of social restrictions into mid-May, there is little to suggest an urgent need for further rate cuts," Mizuho analysts wrote, expecting BNM to remain dovish for some time. BNM may "defer to more targeted fiscal-healthcare coordination...provide liquidity and facilitate loan moratoriums or restructuring to ensure the pandemic does not set off a financial contagion." Emerging market currencies slipped as the U.S. dollar built on momentum stemming from a strong economic recovery and a lift in inflation raising chances of a rate hike. The Chinese yuan, the Thai baht, South Korean won and the Philippine peso all fell between 0.1% and 0.3%. "We think U.S. Treasury 10-year yields will reach 2% by the end of the year...so in the near term, the U.S. dollar looks like its found a floor and that suggests Asian currencies will largely be on the back foot," said Mitul Kotecha, chief EM Asia & Europe strategist at TD Securities. "The increase in virus cases across much of the region is also likely to dent support for Asian currencies," he added. The Indonesian rupiah was an outlier, jumping 0.6% to a seven-week high a day after quarterly gross domestic product (GDP) data signalled that an economic recovery was afoot. HIGHLIGHTS ** Indonesian 10-year benchmark yields are down about 0.89 basis points at 6.468% ** Top losers on the Malaysia index include Supermax Corp , down 11.5%, and Hartalega Holdings Bhd, down 5.4% ** India reported a record 412,262 new COVID-19 cases on Thursday and a record 3,980 daily death toll Asia stock indexes and currencies at 0425 GMT COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD % Japan -0.18 -5.61 1.68 6.75 China -0.08 +0.75 -0.22 -0.98 India 0.00 -1.14 0.52 5.09 Indonesia +0.63 -2.09 -0.11 -0.16 Malaysia -0.19 -2.50 -0.90 -4.04 Philippines -0.05 +0.05 -0.65 -12.34 S.Korea -0.24 -3.47 0.32 9.89 Singapore -0.11 -1.17 0.26 11.18 Taiwan -0.07 +1.80 -0.03 14.29 Thailand -0.29 -3.94 0.94 7.89 (Reporting by Anushka Trivedi in Bengaluru; Additional reporting by Rashmi Ashok; Editing by Muralikumar Anantharaman)