EMERGING MARKETS-Asian FX, equities retreat with focus on U.S. inflation data

* Most currencies chasing weekly gains * Singapore dollar set to snap six-week losing streak * Indian rupee hits over 17-mth low * Regional equities under pressure; Singapore reports first local Omicron case By Sameer Manekar Dec 10 (Reuters) - Most Asian currencies and equities retreated on Friday, losing ground gained earlier this week as investors waited for U.S. inflation data that could likely make the case for faster tapering by the Federal Reserve. However, all major Asian currencies, except the Indian rupee , were set to log positive weekly gains, lifted by easing Omicron concerns. The Singapore dollar was on pace to snap six straight weeks of declines. The Thai baht appreciated more than 1% in a holiday-truncated trading week while Malaysia's ringgit was set for modest gains, as waning fears of the impact of the Omicron variant lifted prospects for the tourism-reliant economies. On Friday, the South Korean won weakened 0.4% to mark its worst intraday drop in a month, and Indonesian rupiah lost 0.2%, while China's yuan slipped sharply off its 3-1/2-year high in the previous session following the central bank's strong policy signal. The U.S. dollar index inched lower to 96.17, but was chasing its seventh straight weekly rise ahead of the inflation data due later today, where any upside surprise will likely be also interpreted as a case for sooner interest rate hikes. A Reuters poll expects U.S. inflation to climb to 6.8% in November, compared with prior month's 6.2%, which was the largest year-on-year advance since November 1990. "This could build on worries of Fed quickening its pace of normalisation. Inferring from recent Fed speaks, it did feel like officials were preparing the ground for faster pace of taper," analysts at Maybank said in a note. Analysts at Mizuho Bank expect emerging market currencies, which gained against the U.S. dollar earlier in the week, to come under pressure as the market focuses on the inflation data and news around the Omicron coronavirus variant. In India, the rupee weakened to 75.70 per dollar, its lowest level since June last year, and was set for a third straight weekly loss, weighed by the central bank https://www.reuters.com/markets/rates-bonds/indias-cbank-leaves-rates-hold-amid-omicron-risks-2021-12-08 standing pat on its record low interest rates. However, analysts at Australian bank Westpac expect the rupee appreciating to 70 per dollar by the end of 2023, citing "considerable promise despite a series of shocks" in the Indian economic and financial outlook. Regional equities were all in red, with the Philippines , Malaysia, Indonesia and South Korea declining between 0.2% and 1%. Singapore shares fell as much as 0.4% as the city-state reported its first locally transmitted Omicron case. Markets in Thailand were closed for a holiday. HIGHLIGHTS: ** Indonesian 10-year benchmark yields falls 1.6 basis points to 6.313% ** Malaysia's Top Glove warns of weak demand as profit slumps - ** India's Star Health choppy in debut after tepid IPO response - Asia stock indexes and currencies at 0626 GMT COUNTRY FX RIC FX FX INDE STOCK STOCK DAILY YTD % X S S YTD % DAILY % % Japan -0.05 -9.04 <.N2 -1.0 3.62 25> China EC> India -0.25 -3.49 <.NS -0.31 24.90 EI> Indones -0.15 -2.31 <.JK -0.48 10.59 ia SE> Malaysi +0.01 -4.62 <.KL -0.12 -7.82 a SE> Philipp 0.00 -4.59 <.PS -0.68 0.65 ines I> S.Korea 11> Singapo -0.10 -3.28 <.ST -0.32 10.15 re I> Taiwan -0.05 +2.73 <.TW -0.49 21.00 II> Thailan - -10.4 <.SE - 11.65 d 9 TI> (Reporting by Sameer Manekar in Bengaluru; Editing by Jacqueline Wong and Sriraj Kalluvila)