EMERGING MARKETS-Asia stocks, FX firm as markets pare U.S. rate expectations

* Markets in Japan are closed for a public holiday * All Asian FX but Philippine peso rise on softer dollar * Indonesia scraps export levy for all palm oil products By Tejaswi Marthi July 18 (Reuters) - Asia's emerging market currencies climbed on Monday as the dollar drifted down from its multi-year highs, with investors gauging the extent of the U.S. Federal Reserve's next rate hike. The South Korean won led gains to advance 0.9%, followed by the Singapore dollar's 0.2% climb. The rupiah also rose 0.1% The greenback has soared this year due to a combination of rising U.S. interest rates amid surging inflation and wobbling economies in Europe and China. Investors hold the view that the Federal Reserve will hike rates by 75 basis points rather than by 100 bps, as fears of inflation have partly eased. Asian stocks also rose, tracking Wall Street's rebound on Friday on lessened expectations of a larger-than-expected Fed rate increase. Equities in South Korea climbed 1.8% to lead gains among its regional peers, followed by a 0.6% climb in Singapore stocks. Stocks in Indonesia and Thailand also rose. "Friday's relief rally was fuelled by the notion that the Fed would hike rates 'only' 75 bp this month rather than 100 bp. That said, recent data suggest the Fed still has a long ways to go in terms of tightening. On the other hand, Chinese data came in weaker than expected and so the global backdrop for EM remains challenging," analysts at BBH said. The overall sentiment, however, was clouded due to sustained economic growth concerns in China as a result of COVID-19 flare-ups and underperformance of property and bank stocks due to worries about homebuyers' mortgage boycotts. "China's regulators have chosen to remain on the sidelines when dealing with the liquidity crisis faced by property developers in the past one year. However, the recent mortgage boycott may potentially create a path to turn the liquidity crisis to a financial crisis," analysts at OCBC observed. Concerns around rising COVID-19 cases in China dragged oil prices lower as investors feared the possibility of a lockdown which could thereby reduce fuel demand in the world's top oil importing nation. Indonesia has scrapped its export levy for all palm oil products until Aug. 31 to help boost exports and ease high inventories, finance ministry officials there said, adding the move would not disrupt government revenues. Indonesian 10-year benchmark yields climbed 1.6 basis points to 7.381% amid Bank Indonesia's (BI) upcoming meeting where analysts expect it to stand pat on interest rates. But Indonesia central bank governor Perry Warjiyo said BI would not hesitate to hike rates when the country's inflation starts to pick up fundamentally. HIGHLIGHTS: ** Singapore's 10-year benchmark yields fall marginally to 2.792% ** Chinese regulators urged banks to extend loans to qualified real estate projects and meet developers' financing needs amid mortgage boycott ** Technology giant Samsung Electronics and peer SK Hynix climbed as much as 2.33% and 4.86%, respectively, to hit their highest in more than a month. Asia stock indexes and currencies at 0343 GMT COUNTRY FX FX FX INDEX STOCKS STOCKS RIC YTD DAILY YTD % DAILY % % % Japan +0.14 -16.81 <.N22 - - 5> China C> India I> Indonesia +0.07 -4.87 <.JKS 0.15 1.22 E> Malaysia -0.01 -6.37 <.KLS 0.01 -9.50 E> Philippines -0.12 -9.50 <.PSI -0.29 -13.27 > S.Korea 1> Singapore +0.21 -3.42 <.STI 0.58 -0.17 > Taiwan I> Thailand I> (Reporting by Tejaswi Marthi in Bengaluru; Editing by Jacqueline Wong)