Indonesia's rupiah bucked gains in a number of major emerging markets on Friday after signals from the country's central bank it was likely to cut interest rates further on one of Asia's big carry trade currencies in the months ahead.

Emerging stock and currency markets were broadly higher as Europe came online after a week which has seen investors weigh hopes from the reopening of economies against new bouts of coronavirus cases in China and a number of other countries.

The Thai baht gained 0.4% as the dollar eased late in Asian trade after a generally tight session. Full percentage point gains for China and Indian shares helped pull stock markets higher.

The rupiah, however, lost almost 0.4% as a number of banks adjusted forecasts for the rest of the year following Bank Indonesia's third rate cut this year on Thursday.

Officials are trying to revive an economy facing its first contraction in two decades in the second quarter and there were also worrying signs in the country's biggest daily increase in COVID-19 cases yet, denting sentiment further.

Tan Yanxi, an FX strategist at Maybank, pointed to the divergence between local coronavirus trends and those of its regional peers as a worry for some traders.

This week has seen geopolitical spats rise in parts of Asia, with heightened tensions in the Korean peninsula and a deadly border clash between China and India, alongside broader concerns of a second wave, which together have put the dollar on the path to its best week in a month.

China pledged further reforms and liquidity to bolster its economy, while Indian shares were lifted by oil-to-telecoms conglomerate Reliance Industries Ltd, which hit a record high.

Philippine shares suffered their worst week since April as the uptick of virus cases in the country force authorities to keep some restrictions in place.