EMERGING MARKETS-Asian currencies weaken on disappointing China data; PBOC cuts rates

* Thai baht hits lowest level since June-end * China's industrial output, retail sales growth slows * China cuts short-term rates By Himanshi Akhand Aug 15 (Reuters) - Thailand's baht led declines in emerging Asian currencies on Tuesday, as another batch of disappointing data from China fanned worries about its faltering economic recovery, even as Beijing cut key policy rates to shore up activity. The baht depreciated as much as 0.8% against the greenback to its lowest level in 1-1/2 months. China's industrial output and retail sales growth slowed in July and undershot forecasts, adding to a raft of recent weak data, and suggesting policymakers may need to step up support measures to shore up the economy. Less than an hour before the data release, China's central bank unexpectedly cut key policy rates for the second time in three months, underlining the rapid loss of the post-COVID economic rebound. Analysts at Goldman Sachs wrote that they expected China's 1-year and 5-year loan prime rates (LPR) to be lowered by 15 basis points (bps) on Aug. 21. "But this should be far from being enough to boost growth. We continue to expect more easing measures in coming months, with a combination of monetary, fiscal, housing and consumption, although the magnitude of stimulus should be smaller than previous easing cycles," they added. The yuan declined as much as 0.4% to a nine-month low. The slide was later contained, after state banks were seen selling U.S. dollars to buy yuan in the onshore spot foreign exchange market, as Reuters reported. "We saw the 10-year UST yields running high and with the PBOC (People's Bank of China) rate cut, this will lead to the rates difference widening between China and the U.S. and put the renminbi under further pressure," said Ken Cheung, chief Asia FX strategist at Mizuho Bank. Cheung said the slow Chinese economic recovery would continue to be a negative factor for regional currencies. The Indonesian rupiah fell 0.2% and hovered near a five-month low. Data showed the country's exports plunged 18% on a yearly basis in July, roughly in line with expectations, as prices of its top commodities like coal and palm oil fell. The Philippine peso declined 0.2% and the Malaysian ringgit fell 0.4%. The Philippine central bank will leave its key interest rate unchanged at 6.25% for a third consecutive meeting on Thursday and keep it there for the rest of the year to assess the impact of previous hikes on inflation, a Reuters poll found. Equities in the region were largely mixed. Stocks in Bangkok and Manila fell 0.6% and 0.4%, respectively, while those in Kuala Lumpur gained 0.3%. Markets in South Korea and India were closed for a holiday. HIGHLIGHTS ** China's statistics bureau said it had suspended publication of youth jobless data, citing the need to improve methodology in the way it measured unemployment among young people ** Singapore releases regulatory framework for single-currency stablecoins ** Japanese authorities are not targeting absolute currency levels when it comes to intervening in the market, said Finance Minister Shunichi Suzuki Asia stock indexes and currencies at 0655 GMT COUNTRY FX RIC FX FX INDE STOCKS STOCKS DAILY % YTD % X DAILY % YTD % Japan -0.10 -10.0 <.N2 0.56 23.55 0 25> China EC> India - -0.28 <.NS - 7.34 EI> Indonesi -0.16 +1.50 <.JK 0.10 0.97 a SE> Malaysia -0.35 -4.99 <.KL 0.32 -2.26 SE> Philippi -0.21 -1.94 <.PS -0.44 -4.04 nes I> S.Korea 11> Singapor -0.02 -1.17 <.ST -0.07 -0.18 e I> Taiwan +0.01 -3.80 <.TW 0.37 16.39 II> Thailand -0.81 -2.11 <.SE -0.55 -8.50 TI> (Reporting by Himanshi Akhand in Bengaluru; Editing by Subhranshu Sahu)