* Asian stock markets: tmsnrt.rs/2zpUAr4 * Public Bank surges, boosting 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, China and the Philippines led declines across Asia"s emerging stock 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 be pushed through by mid-March. Shares in South Korea, the Philippines, Taiwan and China all fell more than 1%. The U.S. dollar was steady even as Treasury yields sunk on the worries around the relief bill and as coronavirus cases surged, with Asia"s emerging currencies flat to slightly higher. "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 added. On the other end, Malaysian shares eased off session highs, still standing out from the regional mood as one of the country"s top banks surged to a near 23-month high in early trade. Public Bank was last up 7.3%. The bank"s 4-for-1 bonus share issue went ex bonus share date on Tuesday, raising the float size but also making it more affordable for retail investors. CGS-CIMB said in a note that Public Bank remains its top banking pick and the most defensive considering an expected rise in bad loans this fiscal year. Better-than-expected fourth-quarter growth in South Korea failed to spur investors, with stocks down 1.7% and the won dipping 0.1%. The country"s economy grew at a seasonally adjusted 1.1% in the December quarter from the third quarter, 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 struggle the Southeast Asian nation is facing in getting a handle on the outbreak. Shares and the rupiah both edged lower. Indian markets were closed for the Republic Day holiday. HIGHLIGHTS: ** Indonesian 10-year benchmark yields are down 4 basis points at 6.251% ** Aside from Public Bank, Dialog Group Bhd and Genting Bhd fell around 3% ** Indonesia raises economic recovery budget to $39 billion Asia stock indexes and currencies at 0343 GMT COUNTRY FX FX FX INDEX STOCKS STOCKS RIC DAILY % YTD % DAILY % YTD % Japan +0.02 -0.45 -0.63 4.36 China +0.12 +0.87 -1.21 3.09 India +0.00 +0.18 -0.93 1.84 Indonesia -0.07 +0.14 -0.05 4.63 Malaysia +0.00 -0.57 0.58 -2.54 Philippines +0.04 -0.08 -1.20 -2.15 S.Korea -0.14 -1.45 -1.65 9.84 Singapore +0.04 -0.43 -0.69 3.85 Taiwan +1.39 +1.72 -1.16 6.98 Thailand +0.00 +0.00 -0.46 3.13 (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Jacqueline Wong)