* Asian stock markets: tmsnrt.rs/2zpUAr4 * Public Bank boosts Malaysia shares * Indonesia set to cross 1 mln COVID-19 cases * South Korea Q4 GDP beats expectations By Nikhil Nainan Jan 26 (Reuters) - South Korea, Indonesia and China stocks fell more than 1% and led the declines in Asian markets on Tuesday, as investors tempered hopes for the quick passage of $1.9 trillion in U.S. stimulus that had boosted sentiment in recent weeks. Markets priced in Republican lawmakers balking at the price tag of the aid package and comments from Senate Majority Leader Chuck Schumer, a Democrat, that the bill may only be pushed through by mid-March even as COVID-19 cases surge globally. South Korea slid 2%, while shares in the Taiwan , Indonesia, China, Singapore and the Philippines fell more than 1%. By afternoon, the region"s emerging currencies were also trading flat to lower as the dollar held steady with flows moving toward safer assets. South Korea"s won fell 0.5%. "At this stage, the price action looks more corrective then structural. An increase in Republican stimulus resistance will further dampen equity market spirits," said Jeffrey Halley, a senior market analyst for Asia Pacific at OANDA. The weak sentiment was likely to spill into European markets, he said. Malaysian shares, however, proved to be an exception. Though off session highs, the shares rose 0.5%, as one of the country"s top banks surged to a near 23-month high in early trade. Public Bank was last up around 5%. The bank"s 4-for-1 bonus share issue went ex-bonus share date, raising the number of shares and making them more affordable for retail investors. CGS-CIMB said in a client note that Public Bank remains its top banking pick and the most defensive considering an expected rise in bad loans this fiscal year. The benchmark has still lost around 3% from Jan. 8, before a state of emergency was declared to help contain the spread of COVID-19. In South Korea, better-than-expected fourth-quarter growth failed to spur investors, with stocks erasing the previous session"s gains led by chipmakers. The country"s economy grew at a seasonally adjusted 1.1% in the December quarter from the prior three months, faster than a median estimate of 0.7% in a Reuters poll. Mizuho Bank said the good news is that growth is recovering, but the "divergence between semiconductor-led exports growth drivers and far more anaemic private consumption recovery are likely to persist." Indonesia is slated to cross 1 million coronavirus cases on Tuesday, highlighting the Southeast Asian nation"s struggle in getting a handle on the outbreak. The rupiah also edged lower. Indian markets were closed for the Republic Day holiday. HIGHLIGHTS: ** Genting Bhd and Hong Leong Financial Group Bhd gained more than 2% ** Indonesia raises economic recovery budget to $39 billion Asia stock indexes and currencies at 0637 GMT COUNTRY FX FX FX INDEX STOCKS STOCKS RIC DAILY % YTD % DAILY % YTD % Japan +0.03 -0.44 -0.96 4.02 China +0.07 +0.82 -1.37 2.93 India - +0.18 - 1.84 Indonesia -0.21 +0.00 -1.48 3.13 Malaysia -0.05 -0.62 0.51 -2.61 Philippines +0.02 -0.11 -1.33 -2.28 S.Korea -0.52 -1.83 -2.14 9.29 Singapore -0.14 -0.60 -1.21 3.30 Taiwan +1.34 +1.67 -1.80 6.29 Thailand -0.07 -0.07 -0.30 3.29 (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Jacqueline Wong and Arun Koyyur)