* South Korean won snaps three-day winning streak
* Malaysian ringgit falls 0.7%
* Indonesia stocks slump 0.6%

By Rishav Chatterjee
       Nov 7 (Reuters) - South Korea's equities and the won
currency fell sharply on Tuesday after a recent rally as it
announced a ban on short selling of shares, while other emerging
Asian equities and currencies also declined.
    The South Korean won fell 0.8% against the
dollar, snapping a three-day winning streak, while stocks in
Seoul were down 3% after four consecutive sessions of
gains. 
    South Korea on Sunday re-imposed a ban on short-selling
shares, at least until June, starting Monday. The ban had helped
shares to rally.
    "With risk-reward remaining amongst the most favourable in
Asia and re-acceleration in semiconductor sector growth cycle
gaining pace, we think that the short selling ban could further
add to tailwinds for the market," analysts at Societe Generale
said.
    Elsewhere, the Malaysian ringgit dropped 0.7%, while
the Indonesian rupiah eased 0.4%. Stocks in Jakarta
 eased 0.6%. 
    Analysts at Maybank expect further downside to the USD-MYR
pair as the U.S. dollar index and U.S. Treasury yields continue
to pull back.
    Indonesia on Monday reported solid economic growth in the
third quarter, although its pace eased more than expected to its
weakest in two years.
    "We expect Bank Indonesia (BI) to hold the policy rate in
the 22-23 Nov meeting, provided that the rupiah maintains its
stability in the lead up to the meeting," Maybank said in a
note. 
    "Currency depreciation has slowed over the past two weeks,
with the rupiah strengthening back to early October levels
following the Federal Reserve meeting on Nov. 1," Maybank added.
    Among other countries, annual inflation in the Philippines
slowed for the first time in three months in October mainly due
to slower increases in food prices, data showed.
    The inflation print will likely ease pressure on the central
bank, which meets next on Nov. 16, to decide on its monetary
policy. Another deciding factor will be Thursday's economic
growth data.
    The peso was trading 0.4% down while stocks in Manila
 gained 0.1%.
    In contrast to South Korea, the Philippine stock exchange
launched its short-selling programme on Monday.
    "This is the culmination of extensive efforts on the part of
the stock exchange launching its securities financing solution
that provides a short-selling infrastructure to market
participants," said Stephen Howard, CEO of Pan Asia Securities
Lending Association.
    Elsewhere in the region equities were trending lower, with
stocks in Singapore and India both falling 0.3%. 
    Equities in Taiwan and Thailand were largely
flat.

   
  Asia stock indexes and                             
 currencies at 0449 GMT                         
 COUNTRY  FX RIC        FX     FX  INDE  STOCK  STOCK
                     DAILY  YTD %     X      S  S YTD
                         %               DAILY      %
                                             %  
 Japan               -0.12  -12.7  <.N2  -1.26  23.77
                                4  25>          
 China                           EC>          
 India               -0.04  -0.64  <.NS  -0.30   6.89
                                   EI>          
 Indones             -0.42  -0.22  <.JK  -0.58  -0.17
 ia                                SE>          
 Malaysi             -0.69  -5.68  <.KL  -0.07  -2.13
 a                                 SE>          
 Philipp             -0.44  -0.98  <.PS   0.10  -7.35
 ines                              I>           
 S.Korea                         11>          
 Singapo             -0.17  -0.98  <.ST  -0.33  -2.50
 re                                I>           
 Taiwan              -0.20  -4.65  <.TW   0.01  17.78
                                   II>          
 Thailan             -0.06  -2.63  <.SE  -0.02  -15.0
 d                                 TI>              8
 
    
    
    
    HIGHLIGHTS:    
    ** Philippines inflation slows in October, eases rate hike
pressure
    ** Malaysia drops plans for proposed transborder haze
pollution bill


    
 (Reporting by Rishav Chatterjee in Bengaluru; editing by Robert
Birsel)