EMERGING MARKETS-Asia FX, stocks slip as risk-off sentiment prevails

* Korean won, Indonesian rupiah lead losses in Asia FX * South Korea, Thailand and Taiwan stocks at multi-month lows * US dollar firms and 10-year Treasury yields jump * StanChart Q3 profit slumps on China real estate, impairments By Poonam Behura Oct 26 (Reuters) - Emerging Asian currencies weakened and stocks dropped on Thursday, pressured by a firm U.S. dollar and elevated bond yields as risk-off sentiment prevailed among investors due to fears interest rates would stay higher for longer. The South Korean won slipped 0.7%, leading the losses in Asian currency markets. The New Taiwanese dollar and Thai baht fell 0.4% and 0.3%, respectively. The dollar index, which measures the strength of the greenback against six major rivals, rose 0.2% to 106.762. The 10-year U.S. Treasury yield, which serves as a crucial economic benchmark and influences borrowing costs, also surged as a five-year treasury bond auction saw weak demand and after data showed new home sales jumped in September. The rise in U.S. yields prompted concerns that global central banks may not lower interest rates anytime soon. Meanwhile, a forecast by the U.S. Commerce Department showed the U.S. economy likely grew in the third quarter at the fastest pace of any quarter in nearly two years on the back of higher wages and spending. "Markets are choppy this week," said Christopher Wong, currency strategist at OCBC in Singapore. "Asian FX is hit by a triple whammy of higher rates, risk off as corporate earnings disappoint and higher oil prices due to worries over escalating geopolitical tensions." Official advance estimates showed South Korea's economy grew in the third quarter at the same pace as in the previous quarter, beating market expectations. But shares in Seoul dropped as much as 2.7% to the lowest level since Jan. 6, falling for the second-consecutive session as rising bond yields weighed on sentiment. Stocks in Thailand fell as much as 1.4% to the lowest since November 2022. Equities in India and Taiwan slid 1.2% and 1.7%, respectively. Bank Indonesia (BI) is expected to hold interest rates at 6.00% until at least the middle of next year after a surprise 25 basis point hike last week to arrest the rupiah's depreciation, a Reuters poll found on Thursday. Shares in Indonesia fell 1.7% after rising in the last two sessions, with the rupiah slipping 0.4% to 15,930 per dollar. "Further upside risks for the rupiah could only be stemmed if it becomes clear that BI is engaging in another cycle of rate hikes," Maybank analysts said. Asia stock indexes and currencies at 0456 GMT COUNTRY FX RIC FX FX INDEX STOCKS STOCKS DAILY % YTD % DAILY YTD % % Japan -0.14 -12.8 <.N22 -2.06 17.37 4 5> China -0.02 -5.71 <.SSE -0.29 -4.01 C> India -0.06 -0.61 <.NSE -0.96 4.60 I> Indonesi -0.38 -2.26 <.JKS -1.68 -1.91 a E> Malaysia -0.17 -8.05 <.KLS -0.07 -3.61 E> Philippi -0.27 -2.24 <.PSI -1.11 -8.82 nes > S.Korea -0.64 -6.91 <.KS1 -2.44 3.09 1> Singapor -0.13 -2.40 <.STI -0.42 -5.71 e > Taiwan -0.36 -5.39 <.TWI -1.37 14.13 I> Thailand -0.33 -4.80 <.SET -1.16 -16.97 I> HIGHLIGHTS: ** Indonesian 10-year benchmark yields up 12 basis points to 7.1% ** South Korea's economic growth beats estimates, backing rate pause ** BOJ to end negative interest rates in 2024, more economists say (Reporting by Poonam Behura in Bengaluru; Editing by Jamie Freed)