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EMERGING MARKETS-Asia stocks, currencies weaker amid lingering China concerns

    * China shares post worst month since May 2019
    * Coronavirus concerns weigh on equities in South-east Asia
    * Taiwan economy grows by preliminary 7.47% in Q2, beats
forecast

    By Harish Sridharan
    July 30 (Reuters) - Emerging Asian markets weakened on
Friday, as Chinese equities reversed a brief rally from the day
before, while Philippine shares sunk after the country imposed a
lockdown in the capital region to contain spread of the Delta
coronavirus variant.  
    Several regional equities, including China,
Philippines and South Korea posted significant
monthly drops, with severe coronavirus outbreaks and a brutal
mainland selloff hurting sentiment.
    Beijing's announcement of new rules barring for-profit
tutoring in core school subjects resulted in a significant rout
in the country's equity markets, and battered stocks in the
education, property and tech sectors.
    Reassurances from Chinese regulators appeared to have
soothed investors' nerves temporarily, but stocks in the
country eyed their worst month since May, 2019.
    "Despite the rebound led by Chinese stocks (yesterday),
markets are still vigilant against more clampdowns in China and
the hardening in US-China rivalry," Philip Wee, FX Strategist at
DBC said in a note. 
    Meanwhile, shares in Manila sunk 3.5% to hit its
lowest since late-may after President Rodrigo Duterte approved
the imposition of lockdown measures in the Manila capital
region. The lockdown is expected to cost the economy $4 billion.

    The latest outbreak in Thailand has resulted in a slump in
tourism amid stricter containment measures. The country's
finance ministry slashed its 2021 economic growth forecast on
Thursday to 1.3% from a previously predicted 2.3% expansion.

    
    
    "Continued threats from the elevated daily case counts and
rising challenges to the healthcare system and Thailand's
sandbox tourism programme could be weighing on sentiments," said
Maybank analysts.
    Equities in the country were down 1.2% and on track
to post their biggest monthly drop since September, 2020. The
baht was down 0.1%.
    While the dollar languished near a one-month low following
dovish remarks by the U.S. Federal Reserve, weakness persisted
in several currencies across the region, with the yuan
 trading relatively flat.
    Taiwan's statistics agency said that the island's economy
grew by a preliminary 7.47% in the second quarter of 2021 from
the same period a year earlier, beating a Reuters poll estimate
of 6.05%. 
    
        
    Highlights
    
    ** In the Philippines, top index loser was San Miguel Corp
 down 7.96%
    ** Thailand shares eye worst month since September 2020
    ** Philippines announces lockdown in Manila capital region
   
    
  Asia stock indexes and currencies at                           
 0752 GMT                                                  
 COUNTRY      FX RIC          FX     FX     INDEX  STOCKS  STOCKS
                           DAILY  YTD %             DAILY   YTD %
                               %                        %  
 Japan                     -0.07  -5.75             -1.80  -0.59
 China                     -0.01  +1.10             -0.42   -2.18
 India                     -0.10  -1.74              0.17   13.04
 Indonesia                 +0.14  -2.90             -0.59    1.76
 Malaysia                  +0.21  -4.92             -0.90   -7.86
 Philippines               +0.11  -4.06             -3.48  -12.18
 S.Korea                   -0.33  -5.57             -1.24   11.44
 Singapore                  0.00  -2.33              0.10   11.96
 Taiwan                    -0.08  +1.85             -0.89   17.07
 Thailand                  -0.06  -8.88             -1.19    4.84
 

    
 (Reporting by Harish Sridharan in Bengaluru; editing by
Uttaresh.V)
  
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