EMERGING MARKETS-Malaysia's ringgit steadies after rate hike, Philippine shares outperform

    * Malaysia central bank hikes rates by 25 bps to 2.25%
    * Philippine may hike rates by additional 100 bps
this year
    * S.Korean won touches 13-year low

    By Riya Sharma
    July 6 (Reuters) - Malaysia's ringgit pared losses on
Wednesday after its central bank hiked its key interest rate for
a second straight meeting, while Philippine shares hit a
three-week high on Wednesday led by industrial companies.
    Shares in Manila rose 2.1%, their highest level since
June 15, and bucking the trend among stocks in the region, which
fell on recession worries.
    China's foreign minister Beijing was ready to work with the
new Philippines president to help usher in what he called a "new
golden era" in the countries' relationship.
    Meanwhile, the Malaysian ringgit pared losses of 0.1%
to trade flat after the central bank raised its key interest
rate by 25 basis points to 2.25%, in its first
consecutive hike in more than a decade.
    "The fact that the central bank has not gone more ballistic
with a 50 bps hike today speaks to the heavy preference for a
gingerly approach in tightening, which is a prudent thing given
the broad uncertainties on the global side with recession fears
on the rise," said Wellian Wiranto, an economist at OCBC Bank.  
    "Going forward, we see at least one more 25 bps hike from
the central bank that will be seen as further normalization of
policy rate rather than outright tightening."
    The Philippine central bank may raise interest rates by an
additional 100 basis points this year, its governor said on
Wednesday, after data on Tuesday showed annual inflation hit a
near four-year high in June.
    The central bank has raised its benchmark interest rate
 by a total 50 basis points so far this year, and a
cumulative 100 bps hike will bring the rate to 3.5%. Its next
policy review is on Aug. 18.
    However, the Philippine peso skidded 0.4% in tandem
with the regional currency markets.
    The South Korean won led a retreat in regional
currencies, skidding 0.5% to touch a 13-year low, as investors
shunned the riskier assets.
    The dollar held near multi-month highs on Wednesday against
major peers as higher gas prices and political uncertainty
renewed fears of a sharp economic slowdown and sent investors
scrambling to the safe-haven currency.
    Asian equity markets wobbled, with shares in energy
exporters Indonesia and Malaysia slipping up to
1.5% and 1.3%, respectively, while the Indian rupee
gained 0.1%.
    Oil prices suffered their biggest daily drop since March on
growing fears that a recession could slash demand.


** Indonesian 10-year benchmark yields are up 1.6
basis points at 7.314%​​ 
** Top losers on FTSE Bursa Malaysia Kl Index .KLSE include
Petronas Chemicals Group Bhd PCGB.KL down -7.24%; Sime Darby
Plantation Bhd SIPL.KL down -5.87% and Kuala Lumpur Kepong Bhd
KLKK.KL down -4.56%
  Asia stock indexes and                             
 currencies at   0738 GMT                       
                     DAILY  YTD %     X      S  S YTD
                         %               DAILY      %
 Japan               +0.27  -15.0  <.N2  -1.20  -9.32
                                7  25>          
 China    <CNY=CFX   +0.21  -5.22  <.SS  -1.43  -7.81
          S>                       EC>          
 India               +0.09  -6.26  <.NS  +0.94  -8.04
 Indones             -0.07  -4.97  <.JK  -1.02  +0.81
 ia                                SE>          
 Malaysi             -0.07  -5.81  <.KL  -1.07  -9.07
 a                                 SE>          
 Philipp             -0.43  -8.36  <.PS  +2.14  -9.51
 ines                              I>           
 S.Korea  <KRW=KFT   -0.46  -8.99  <.KS  -2.13  -23.0
          C>                       11>              3
 Singapo             +0.24  -3.76  <.ST   0.00  -0.63
 re                                I>           
 Taiwan              -0.12  -7.09  <.TW  -2.53  -23.2
                                   II>              4
 Thailan             -0.29  -7.34  <.SE  +0.05  -6.97
 d                                 TI>          

 (Reporting by Riya Sharma in Bengaluru; Editing by Amy Caren