EMERGING MARKETS-Asian FX muted on firm dollar, stocks fall; Malaysia rate decision awaited

(Widens distribution) * South Korean shares fall 1.1% * Philippine stocks 1% lower after GDP * Malaysia rate decision due later on Thursday By Ayushman Ojha May 9 (Reuters) - Asian currencies were largely muted on a firmer dollar, and most regional stocks slipped as investors cautiously awaited U.S. inflation data for clues to the Fed's rate outlook, while the focus in Malaysia turned to a key rate decision due on Thursday. The South Korean won fell 0.5%, and the Taiwanese dollar inched 0.1% lower. The Malaysian ringgit was flat ahead of the central bank's decision, with Bank Negara Malaysia (BNM) expected to leave its key rate at 3.00%, and keep it unchanged until at least 2026, a Reuters poll showed. "BNM is likely to hold policy rate at 3% today. However, we do not rule out the chance of a rate hike, given that we see upside risk to inflation," said Lloyd Chan, a senior currency analyst at MUFG Bank. "I think they would lean towards more of a hawkish side on the pickup in growth that we see in the first quarter and the upside risk to inflation going forward." Indonesia's financial markets were shut for a public holiday. On Tuesday, its central bank governor said a further rate hike was probably not needed as last month's increase drew capital inflows and stabilised the rupiah amid a better-than-expected global backdrop. The rupiah has lost nearly 4% this year, while the ringgit has depreciated 3.2% in 2024. Other regional currencies, such as the Singapore dollar and the Philippine peso, were largely unchanged. Most stocks in the emerging Asia region were lower as investors awaited next Wednesday's U.S. consumer inflation data for April to get more clues to the Federal Reserve's stance on rate cut timings, after a dovish signal from last week's softer-than-expected jobs data. Stocks in South Korea fell as much as 1.1%, while Philippine shares lost 1% after data showed the economy accelerated less than expected in the first quarter. Malaysian shares were down 0.3% ahead of the rate decision, while Taiwan shares inched down 0.1%. Bucking the regional trend, Thailand stocks rose as much as 0.5%, while Singapore stocks added 0.1%. HIGHLIGHTS: ** China's exports and imports return to growth, signalling demand recovery ** India inflation likely slipped in April ** BOJ's board turned hawkish in April, steady rate hikes now in view #NAME? COUNTRY FX RIC FX FX INDE STOCK STOCK DAILY YTD X S S YTD % % DAILY % % Japan -0.06 -9.3 <.N2 0.40 14.62 3 25> China 5 EC> India +0.10 -0.2 <.NS -0.23 2.39 8 EI> Indones - -4.0 <.JK - -2.53 ia 2 SE> Malaysi +0.00 -3.1 <.KL -0.30 9.99 a 6 SE> Philipp +0.12 -3.3 <.PS -1.04 2.17 ines 4 I> S.Korea 3 11> Singapo +0.05 -2.6 <.ST 0.05 0.79 re 3 I> Taiwan -0.10 -5.2 <.TW -0.10 15.33 5 II> Thailan +0.11 -7.3 <.SE 0.34 -2.67 d 7 TI> (Reporting by Ayushman Ojha in Bengaluru; Editing by Clarence Fernandez)