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CORRECTED-EMERGING MARKETS-South Korean won, Philippines peso lead losses among subdued Asian currencies

 (Corrects sixth paragraph to say Thailand would become one of
the last countries in the region to hike rates, not the last)
    * Markets await U.S. inflation data
    * Bank of Thailand expected to hike rates for first time  
    * Philippines peso extends losses

    By Archishma Iyer
    Aug 10 (Reuters) - Most Asian currencies were subdued on
Wednesday, while most stock markets in the region fell, tracking
losses on Wall Street, as investors awaited U.S. inflation data
later in the global day. 
    The South Korean won and the Philippines peso
 led the laggards for the day, dropping 0.3% and 0.2%,
respectively, while the Singapore dollar and the
Malaysian ringgit were nearly flat. 
    Investors are watching for any signs that red-hot U.S.
inflation eased in July despite last week's unexpectedly strong
U.S. jobs numbers, but even the slight pullback being forecast
is unlikely to alter expectations of more sharp interest rate
rises ahead.
    The dollar index, which measures the strength of the
greenback against six major currencies, edged slightly lower to
106.29 in Asian trade.  
    "Markets now are likely re-adjusting to the prospects that
the end of the Fed hike cycle could be further out in terms of
timing and terminal rates could be higher," analysts from DBS
said in a research note. 
    Back in the region, the Thai baht edged higher in
early trade as the tourism-reliant Southeast Asian nation awaits
its central bank's policy decision later in the day. It is
expected to lift its key rate by 25 basis points, making it one
of the last countries in the region to raise rates.
    "On net though, BoT's gradual hike trajectory in the second
half could have been priced in by markets somewhat, and more
uncertainty could come from the Fed policy path instead,"
analysts from Maybank wrote.
    The Philippine peso extended losses for the second straight
day after second-quarter economic growth came in slower than
expected, though the government is confident this year's growth
target remains achievable.
    Meanwhile, the Chinese yuan edged lower after its
July inflation numbers missed forecasts, pointing to slower
economic growth. 
    Most stock markets in the region fell, with Indonesia
 dropping as much as 1.1%, while Philippines and
South Korea's KOSPI lost 0.8% and 0.6%, respectively.
    Shares in Malaysia fell about 0.3% ahead of its
second-quarter GDP on Friday, although a Reuters poll found that
its economy likely grew at the fastest rate in year due to
strong rebounds in exports and consumption. 
    
    
HIGHLIGHTS:
** Indonesia c.bank gov says authorities should shore up food
supplies to ensure lower prices
** India bond yields seen higher on hawkish rate hike view

** Indonesia 10-year bond yield up to 7.120% 
    
    
 Asia stock indexes and currencies                           
 at 0334 GMT                                           
 COUNTRY   FX RIC          FX     FX    INDEX  STOCKS  STOCKS
                      DAILY %  YTD %            DAILY   YTD %
                                                    %  
 Japan                  +0.10  -14.7           -0.83      
                                   6                   
 China     <CNY=CFXS    -0.06  -5.95            -0.39  -11.12
           >                                           
 India                  +0.08  -6.61             0.00    0.99
 Indonesi               -0.17  -4.20            -1.08    6.76
 a                                                     
 Malaysia               -0.04  -6.53            -0.24   -4.68
 Philippi               -0.22  -8.49            -0.61   -9.73
 nes                                                   
 S.Korea   <KRW=KFTC    -0.27  -9.12            -0.74  -16.55
           >                                           
 Singapor               +0.01  -2.11             0.42    5.16
 e                                                     
 Taiwan                 -0.12  -7.78            -0.63  -17.91
 Thailand               +0.03  -5.52            -0.55   -2.88
 
    
 (Reporting by Archishma Iyer in Bengaluru; Editing by Kim
Coghill)
  
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