Equities and currencies in Asian emerging markets strengthened on Tuesday, as fears around the Omicron coronavirus variant ebbed on reports that the strain"s impact may be mild. Shares in Bangkok (.SETI), Seoul (.KS11) and Kuala Lumpur (.KLSE) rose 0.6%-0.9%, while stocks in Mumbai (.NSEI) rebounded from a more than three-month closing low to jump as much as 1.7%. Currencies in the region bounced, with the Indonesian rupiah , South Korean won and Thai baht firming 0.3%-0.4%. "With the overnight consolidation in risk, we expect some room for Asian currencies to reverse yesterday"s decline against the U.S. dollar," analysts at OCBC said in a note. Early observations in South Africa suggest that those infected with the new variant suffer relatively minor symptoms, compared with previous virus waves. read more Dr. Anthony Fauci, the top U.S. infectious disease official, said "it does not look like there"s a great degree of severity to it," but added that it was too early to draw definitive conclusions. read more China"s yuan inched higher against the dollar, as investors digested the Chinese central bank"s decision to cut the amount of cash that banks must set aside in reserves, while shining trade data lifted market sentiment. Shares (.SSEC) wobbled between positive and negative territory. The PBOC said on its website it would cut the reserve requirement ratio (RRR) for banks by 50 basis points (bps), effective from Dec. 15. "Sentiment recovered overnight, encouraged by China"s 50bps RRR cut and also the latest (albeit still preliminary) report by doctors in South Africa that there are early signs that most Omicron cases are mild," analysts at Maybank said in a note. Investors also cautiously watched if China Evergrande Group (3333.HK) would default as the world"s most indebted developer inches closer to a debt restructuring. read more Indian shares (.NSEI) posted their biggest one-day jump since late-September, a day ahead of a central bank meeting where the Reserve Bank of India is expected to hold its benchmark interest rate at 4.00% and the reverse repo rate at 3.35%. read more Meanwhile, shares in Manila (.PSI) dropped 0.4% after three straight sessions of gains, while the peso edged 0.1% higher. Philippine inflation in November eased to the lowest in four months, supporting expectations that the central bank will keep its benchmark interest rates steady at its last meeting for the year, to support an economic recovery. read more Stocks in Taipei (.TWII) were up 0.6%, while the local dollar dipped ahead of the island"s trade and inflation data. read more HIGHLIGHTS ** China Evergrande (3333.HK) shares pare most early gains to trade 0.6% higher ** Indonesian 10-year benchmark yields rise 1 basis point at 6.425% ** In India, Hindalco Industries Ltd (HALC.NS) leads gains on the Nifty 50 (.NSEI) Asia stock indexes and currencies at 0650 GMT COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD % Japan -0.22 -9.21 (.N225) 1.89 3.69 China +0.12 +2.51 (.SSEC) -0.16 3.18 India +0.12 -3.00 (.NSEI) 1.63 22.93 Indonesia +0.28 -2.47 (.JKSE) 0.86 10.44 Malaysia +0.04 -4.93 (.KLSE) 0.36 -8.51 Philippines +0.10 -4.55 (.PSI) -0.35 -0.47 S.Korea +0.30 -7.91 (.KS11) 0.62 4.12 Singapore +0.17 -3.33 (.STI) 0.35 9.97 Taiwan -0.09 +2.59 (.TWII) 0.61 20.80 Thailand +0.47 -11.15 (.SETI) 0.89 10.56 Reporting by Harish Sridharan in Bengaluru; editing by Uttaresh.V Our Standards: The Thomson Reuters Trust Principles.