EMERGING MARKETS-Philippine stocks, peso rise as vows easy policy

    * Financial markets in Singapore, Japan closed for holidays
    * Philippine to keep policy accommodative
    * Emerging FX fall on greenback strength

    By Harish Sridharan
    Aug 9 (Reuters) - Philippine stocks and the peso gained on
Monday after the country's central bank said it would keep
monetary policy loose for longer, while Asia's emerging
currencies weakened against a buoyant dollar.
    The peso bucked the broader trend and gained 0.6%,
while local stocks rose 1.4% to be the top gainer in the
region after Bangko Sentral ng Pilipinas (BSP) forecast a strong
economic recovery in the second-quarter.
    Philippine policymakers will meet on Thursday to decide on
key interest rates, while second-quarter economic data will be
released on Tuesday.    
    Governor Benjamin Diokno said the central bank would stay
accommodative for as long as needed to ensure a sustainable
economic recovery from the coronavirus pandemic as the capital
city Manila remains in lockdown.  
    However, some market views on growth prospects for the
Philippines were less upbeat, with ING senior economic Nicholas
Mapa expecting a quarter-on-quarter contraction.
    "With the economy likely exiting then re-entering recession,
we expect BSP to maintain monetary support for the balance of
2021 and well into 2022,"  he added.  
    Financial markets in Japan and Singapore were shut due to a
    Meanwhile, the greenback strengthened after a strong U.S.
jobs report stoked bets that a reduction in asset purchases
could start this year and higher interest rates could follow as
soon as 2022.
    The Thai baht, Indonesian rupiah and South
Korean won lost between 0.1% and 0.3%. 
    Shares in China rose 1%, even as the latest COVID-19
outbreak in the country entered into a third week, and as the
unpredictability of the country's regulatory crackdowns keep
investors on edge.
    Stocks in Kuala Lampur were up 0.4%. 
    Malaysia's Prime Minister Muhyiddin Yassin on Sunday said
some COVID-19 restrictions would be relaxed for fully vaccinated
people in eight states that have met criteria such as reduced
case numbers and higher vaccination rates.
    ** Indonesian 10-year benchmark yields down 10.29 basis
points at 6.288% 
    ** In the Philippines, top index gainer was Ayala Land Inc
 up 3.72%
    ** China's semiconductor subindex CSI All Share
Semiconductors & Semiconductor Equipment Index drop
  Asia stock indexes and currencies at                            
 0517 GMT                                                    
                            DAILY       %             DAILY  S YTD
                                %                         %      %
 China                      +0.13   +0.81              0.97   0.54
 India                      -0.09   -1.56              0.36  16.56
 Indonesia                  -0.14   -2.30             -0.14   3.60
 Malaysia                   -0.13   -4.80              0.35  -8.13
 Philippines                +0.56   -4.53              1.42  -7.10
 S.Korea                    -0.22   -5.10             -0.14  13.65
 Taiwan                     -0.05   +2.35             -0.38  18.51
 Thailand                   -0.30  -10.41              1.01   6.05

 (Reporting by Harish Sridharan in Bengaluru; Editing by Lincoln