* Asia FX, equities broadly lower * U.S. inflation raises Fed rate hike worries By Shashwat Awasthi July 14 (Reuters) - Emerging Asian markets slipped on Wednesday after U.S. inflation data stoked fears of earlier-than-expected policy tightening by the Federal Reserve, while Singapore stocks shed small, early gains made after the release of gross domestic product data. Consumer prices in the United States increased by the most in 13 years in June, leading investors to sweat over the prospects of the Fed scaling back policy support swiftly. The U.S. dollar firmed after the data overnight, leading South Korea's won down 0.4% while Indonesia rupiah and Malaysia's ringgit eased 0.2% each. "This backdrop of higher for longer U.S inflation and a faster hiking Fed and strengthening USD is not a good recipe for emerging Asia," Robert Carnell, regional head of research, Asia-Pacific at ING said in a note. "...With the backdrop turning less supportive, we may have to deal with a broad-based EM souring in both bond and FX space as we head into the year-end." Singapore's FTSE Strait Times Index traded flat after rising as much as 0.3% and the Singapore dollar was unchanged. Preliminary data showed the economy grew its fastest pace in just over a decade year-on-year, but contracted 2% on a quarter-on-quarter seasonally adjusted basis. Alex Holmes, emerging Asia economist at Capital Economics, said he still expects GDP to expand to the top end of the government's 4%-6% estimate in 2021. "With new infections down and the government rolling back containment measures, the recovery should regain momentum over the coming months," Holmes said. Philippine shares avoided the broader fall and added 0.1% after a more than 1.7% drop on Tuesday. Data also showed remittances in May jumped more than 13% from last year. Vietnamese shares also gave up early gains to trade 0.4% lower. The index has slumped more than 7% so far this month amid a record rise in COVID-19 infections, but HSBC equity strategist Devendra Joshi was still bullish on its prospects. "We believe Vietnamese equities still have juice left and so we remain positive," Joshi said in a note to clients. "With the pandemic still a cause for concern and the market dominated by retail investors, further volatility can't be ruled out. But we do not expect the weakness to persist for long." HIGHLIGHTS ** Indonesian 3-year benchmark yields are down 5.7 basis points at 4.554%. ** In the Philippines, top index gainers are JG Summit Holdings up 1.8%, Metro pacific Investments up 1.3%, and Bank of the Philippine Islands up 1.2%. ** Top gainers on Singapore's STI include Thai Beverage up 1.5%, Yangzijiang Shipbuilding Holdings up 1.5%, and Jardine Matheson Holdings up 0.6%. Asia stock indexes and currencies at 0331 GMT COUNTRY FX RIC FX FX INDE STOCK STOCK DAILY YTD % X S S YTD % DAILY % % Japan +0.11 -6.56 <.N2 -0.21 4.43 25> China <CNY=CFX -0.10 +0.83 <.SS -0.95 1.71 S> EC> India +0.00 -1.92 <.NS 0.00 13.09 EI> Indones -0.17 -3.09 <.JK -0.27 0.28 ia SE> Malaysi -0.14 -4.22 <.KL -0.29 -6.89 a SE> Philipp -0.09 -4.20 <.PS 0.06 -4.77 ines I> S.Korea <KRW=KFT -0.42 -5.56 <.KS -0.20 13.62 C> 11> Singapo +0.00 -2.52 <.ST 0.10 11.19 re I> Taiwan -0.01 +1.73 <.TW 0.02 21.17 II> Thailan +0.00 -8.18 <.SE -0.19 8.19 d TI> (Reporting by Shashwat Awasthi; Editing by Simon Cameron-Moore)
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