EMERGING MARKETS-Asian FX cautious ahead of Fed minutes, Thai baht jumps on tourism prospects

* Singapore dollar, Thai baht among top gainers in Asian FX * Thai baht reaches more than 7-mth high * Chinese yuan hovers around 4-mth high against dollar By Savyata Mishra Jan 4 (Reuters) - The Thai baht and Singapore dollar firmed on Wednesday among weak Asian currencies as investors remained risk-averse ahead of the release of U.S. Federal reserve policy meeting minutes and as China's COVID-19 cases continued to mount. The baht outperformed with a 0.5% rise to its highest since May 31, benefiting from expectations that China's scaling back of stringent anti-virus controls could boost tourism. Thailand is expecting at least 5 million Chinese tourist arrivals this year as China reopens its borders, in what could be a further boost to the Southeast Asian country's economy and its vital tourism sector. Although optimism over inbound Chinese tourists could power the baht higher in the near term, Poon Panichpibool, markets strategist with Krung Thai Bank, warned of the possibility that another COVID wave could follow. "This could cause more stress for the healthcare system if the government is not well-prepared," he said, adding that such a scenario could spur profit-taking on Thai assets. The Singapore dollar gained 0.3%. It was the best performing regional currency in 2022, supported by proactive tightening by its monetary policy authority. China's yuan hovered around a four-month high against the dollar on Wednesday, boosted by investor expectations of more policy support to boost the economy. The greenback wobbled in Asian trading hours, down 0.25% after a steep spike overnight. Minutes from the Fed's December meeting, when it cautioned that rates may need to remain higher for longer, are due to be released later on Wednesday and will be parsed for clues on whether more policy tightening is likely. Most Asian emerging currencies remained subdued, weighed down by concerns over a projected global slowdown. The Indonesian rupiah was down 0.1% and the South Korean won fell 0.3%. Malaysia's ringgit was flat after data earlier in the day revealed a further contraction of manufacturing activity in December. "We expect slower activities in regional production will remain for now on the back of weaker demand and in anticipation of slow growth in advanced markets," MIDF Research said in an emailed note. Among equities, Philippine stocks jumped nearly 2% to their highest since Dec. 2. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5%, set for a third straight day of gains for the year. Jakarta and Indian stocks were down 0.3% each, while shares in Thailand fell 0.4%. HIGHLIGHTS: ** Bank of Japan Governor Haruhiko Kuroda said the central bank would maintain its loose monetary policy in order to sustain inflation at its 2% target, along with wage growth. ** South Korean shares recovered early losses and turned higher on Wednesday, with heavyweight chipmakers leading the gains. The won weakened, while the benchmark bond yield fell. ** Japan's Nikkei hit a more than three-month low on the first trading session of 2023 on Wednesday, tracking Wall Street's weak finish overnight. Asia stock indexes and currencies at 0428 GMT COUNTRY FX RIC FX FX INDEX STOCKS STOCK DAILY YTD % DAILY S YTD % % % Japan +0.15 +0.23 -1.26 -1.26 China +0.40 +0.20 0.32 1.21 India +0.04 -0.16 -0.33 0.37 Indonesia -0.13 -0.32 -0.30 0.25 Malaysia +0.02 -0.02 -0.13 -1.56 Philippines -0.02 -0.48 1.93 2.23 S.Korea -0.25 -0.76 1.36 0.56 Singapore +0.23 -0.13 -0.01 -0.18 Taiwan -0.03 +0.00 0.06 0.67 Thailand +0.38 +0.96 -0.39 0.22 (Reporting by Savyata Mishra in Bengaluru; Editing by Edmund Klamann)