* Indian rupee worst performer in Asian FX in 2020 * China stocks climb to near 2-year high * S.Korea stocks notch biggest annual gain since 2009 By Pranav A K Dec 31 (Reuters) - Malaysian shares slipped on Thursday after the United States blocked palm oil imports from Sime Darby Plantation, although most other markets in the region closed higher for the year, with South Korea and India leading the charge. The U.S. ban on Sime Darby, the world"s largest palm oil company by landsize, is due to allegations of forced labour and follows a similar ban on FGV Holdings in October, spelling trouble for Malaysia"s vast palm oil industry. Sime Darby"s shares slumped more than 3%, denting the Kuala Lumpur index, which is set to end the year on a positive note after two years of decline. Asian markets, including Thailand, South Korea and the Philippines, have recouped most of their losses from earlier this year as positive vaccine development has brightened prospects for trade-reliant economies. Emerging Asia"s currencies are also set to end the year on a firmer note, helped by a swift economic rebound in China, the region"s growth engine. Malaysian ringgit strengthened 0.5% on the day and was on track to record near 2% annual gain, while Singapore dollar edged higher. China shares climbed 1.7% to their highest level in about two years, taking the year"s gains to 14%, after investors took heart from a deal that will help redress what Europe sees as unbalanced economic ties with Beijing. Taiwan"s stocks and currency were set to be the best performers in the region this year, adding 23% and 7.2%, respectively. Investor confidence in Taiwan improved on its efficient handling of the pandemic and as a shift to working remotely amid the pandemic boosted its tech exports. The Indian rupee, however, is set to be the biggest laggard this year, shedding 2.3%, as lockdowns hurt the country"s economy. The Chinese yuan, which has risen rapidly since May, dropped on Thursday as traders suspected state-owned banks were buying dollars to stem the currency"s rise and breaching a key level of 6.5 per dollar. Trading volumes in the region were thin as stock markets in the Philippines, Indonesia, Thailand, Japan and South Korea remained closed for a public holiday. HIGHLIGHTS: ** Singapore GDP to extend decline in Q4 - Reuters poll ** Top losers on FTSE Bursa Malaysia Kl Index include Sime Darby Plantation Bhd, down 3.5%, and CIMB Group Holdings Bhd, down 2% ** Singapore"s 10-year benchmark yield is down 1.7 basis points at 0.839% Asia stock indexes and currencies at 0802 GMT COUNTRY FX RIC FX FX INDEX STOCKS STOCKS DAILY % YTD % DAILY YTD % % Japan +0.08 +5.35 <.N22 0.00 16.01 5> China -0.12 +6.59 <.SSE 1.72 13.87 C> India +0.35 -2.29 <.NSE 0.07 14.98 I> Malaysia +0.47 +1.82 <.KLS -0.82 2.66 E> Philippi +0.00 +5.50 <.PSI 0.00 -8.64 nes > Singapor +0.15 +1.78 <.STI -0.89 -11.76 e > Taiwan -0.00 +5.61 <.TWI 0.31 22.80 I> (Reporting by A K Pranav and Anushka Trivedi in Bengaluru; Editing by Anil D"Silva)