EMERGING MARKETS-Asia FX, stocks trip as U.S. inflation fuels rate hike fears

* Singapore Q2 GDP contracts Q/Q * Fed Chair Powell's testimony awaited * Vietnam stocks slide on pandemic woes By Shashwat Awasthi July 14 (Reuters) - Singapore stocks shed minor early gains and most other emerging Asian equities and currencies slipped on Wednesday after U.S. inflation data stoked fears of earlier-than-expected policy tightening by the Federal Reserve. The U.S. dollar firmed after data overnight showed consumer prices in the United States increased by the most in 13 years in June, leading investors to sweat over the prospects of the Fed scaling back policy support swiftly. South Korea's won skidded 0.5% while Indonesia's rupiah, Malaysia's ringgit and the Philippine peso eased 0.2% each. Stocks in Jakarta tumbled 0.8% to lead losses in the region. "This backdrop of higher for longer U.S inflation and a faster hiking Fed and strengthening USD is not a good recipe for emerging Asia," Robert Carnell, regional head of research, Asia-Pacific at ING said. "...With the backdrop turning less supportive, we may have to deal with a broad-based EM souring in both bond and FX space as we head into the year-end." The Fed has so far called rising inflation "transitory", and all eyes now turn to Chair Jerome Powell's testimony before Congress this week for further clues on the bank's stance. SINGAPORE SUBDUED In Singapore, the FTSE Strait Times Index edged lower after rising as much as 0.3% and the Singapore dollar was marginally lower. Preliminary data showed the city-state's economy grew 14.3% annually, its fastest pace in just over a decade year-on-year, but contracted 2% on a quarter-on-quarter seasonally adjusted basis. The annual growth "is not a glamour shot of roaring, unfettered recovery but rather glimmers of nascent pick-up extending," Mizuho analysts said in a note, but flagged risks from COVID-19 variants and the Fed's potential policy change. "A bumpy path out of the pandemic may persist for far longer than is generally expected. A steadier recovery will probably only emerge in 2022." Vietnamese shares, which have slumped more than 7% so far this month amid a record rise in COVID-19 infections, gave up early gains and shed another 1.6%. HIGHLIGHTS ** Singapore's 10-year benchmark yield is up 2 basis points at 1.499%. ** In the Philippines, top index gainers are Emperador up 3.5%, JG Summit Holdings up 2.7%, and SM Investments up 2%. ** In Indonesia, top index losers are Sekar Bumi down 7%, Bank Sinarmas down 7%, and Solusi Sinergi Digital down 6.9%. Asia stock indexes and currencies at 0614 GMT COUNTRY FX RIC FX FX INDE STOCK STOCK DAILY YTD % X S S YTD % DAILY % % Japan +0.12 -6.55 <.N2 -0.23 4.40 25> China EC> India -0.10 -2.01 <.NS 0.13 13.24 EI> Indones -0.19 -3.11 <.JK -0.84 -0.29 ia SE> Malaysi -0.19 -4.26 <.KL -0.20 -6.80 a SE> Philipp -0.34 -4.44 <.PS 0.59 -4.26 ines I> S.Korea 11> Singapo -0.01 -2.53 <.ST -0.18 11.16 re I> Taiwan +0.03 +1.76 <.TW -0.01 21.13 II> Thailan +0.00 -8.18 <.SE -0.47 7.89 d TI> (Reporting by Shashwat Awasthi; Editing by Shailesh Kuber)