EMERGING MARKETS-Thai stocks kip up after govt lifts emergency measures

    * Graphic: World FX rates
    * Graphic: Foreign flows into Asian stocks
    * Baht hits two-week low
    * Manila shares touch more than 3-month high

    By Shashwat Awasthi
    Oct 22 (Reuters) - Thai shares bounced from earlier losses on Thursday after the government
lifted emergency measures aimed at ending months-long protests against Prime Minister Prayuth
Chan-ocha and the monarchy.
    Uncertainty over whether U.S. lawmakers would be able to agree on and deliver a new
coronavirus relief deal weighed on other emerging Asian markets, as most currencies dipped
between 0.1% and 0.3% against the dollar.
    Thailand's stock market, the region's worst performer so far this year, gained as
much as 0.4% after falling almost 1% earlier, as the government rolled back its emergency decree
to de-escalate simmering tensions.
    "Indeed, lifting of emergency to curb protests is positive news for the markets," said
Prakash Sakpal, senior Asia economist at Dutch bank ING.
    However, Sakpal warned that the move was unlikely to result in a swift resolution of matters
and would "further strengthen protesters' resolve in their anti-government movement."
    Protesters had continuously defied the measures imposed last week, including bans on
political gatherings of five or more people. On Wednesday, they gave the prime minister a
three-day deadline to step down or face more protests.
    "The lifting of the state of emergency is a small relief rally... But key demands have not
changed, especially for the PM to step down within three days from yesterday," said Kobsidthi
Silpachai, head of capital markets research at Kasikornbank.
    "Still, the market will take any good news it can."
    Investors have been dumping Thai stocks of late and the country has already seen record
equity outflows so far this year, while analysts have also warned of the risk of an even deeper
    The baht weakened 0.3%, in line with other regional currencies.
    Elsewhere in the region, Taiwan's dollar was the only outlier as it firmed 0.9% to
continue its bullish rise.
    Malaysian equities were subdued, but fared slightly better than the rest of the
region on the back of some signs of easing political worries.
    The biggest party in Malaysia's ruling alliance on Wednesday pledged its support for Prime
Minister Muhyiddin Yassin, providing him temporary reprieve following opposition leader Anwar
Ibrahim's recent claim to form a new government.
    The Philippines recorded its lowest daily increase in coronavirus cases in more than six
weeks on Wednesday, helping stocks rise more than 1% to their highest since July 7.
    ** Thailand's 3-year benchmark yield is down 2 basis points at 0.66%
    ** Top gainers on Thailand's SETI include Gold Property Fund Lease Hold up
17.65%, Thai-German Products up 16.67% and TU Dome Residential Complex Leasehold
Property Fund TU-PFu.BK up​ 10.96%
    ** In the Philippines, top index gainers are LT Group up 6.98%, Robinsons Land
 up 6.04% and San Miguel Corp up ​3.63%
   Asia stock indexes and currencies at 0655 GMT                                  
    Japan                    -0.02       +3.85                  -0.70          -0.77
    China                    -0.21       +4.49                  -0.35           8.63
    India                    -0.05       -3.05                  -0.34          -2.23
  Indonesia                  -0.27       -5.26                  -0.26          -19.31
  Malaysia                   -0.14       -1.40                  -0.03          -6.09
 Philippines                 -0.08       +4.33                   1.05          -18.82
   S.Korea                   -0.09       +2.07                  -0.67           7.16
  Singapore                  -0.15       -0.86                  -0.03          -21.66
   Taiwan                    +0.88       +5.12                   0.31           7.67
  Thailand                   -0.29       -4.32                   0.44          -22.66
 (Reporting by Shashwat Awasthi in Bengaluru; Editing by Subhranshu Sahu)