EMERGING MARKETS-Asian FX set for weekly losses as global growth woes persist

* Asian currencies, stocks set for weekly losses * Thai key rate likely to rise at Aug. meeting - c.bank official * China's Q2 GDP growth slows sharply to 0.4% y/y By Harish Sridharan July 15 (Reuters) - Asia's emerging market currencies fell further on Friday even as the U.S. dollar took a breather from its relentless surge and were set to post weekly losses with a worsening global growth outlook dampening risk sentiment. The greenback held steady in Asian trading after two Federal Reserve policymakers said they favoured a smaller rate rise than the 100 basis points that investors were betting on. Bond markets, however, remain priced for steep hikes. Weaker-than-expected growth in China added to global economic woes. The country's gross domestic product slowed sharply in the second quarter as widespread COVID-19 lockdowns hit industrial activity and consumer spending. Malaysia's ringgit, the Thai baht and Taiwanese dollar declined between 0.1% and 0.4%. The South Korean won - the region's worst performing currency this year - dropped a further 0.9% to hit levels not seen since 2009. Currencies in the region have come under immense pressure in recent months. Heightened concerns over growth have contributed to outflows from riskier Asian assets and raised expectations that the Fed will hike rates faster and higher than its peers, sending the safe-haven dollar soaring. "Slowing growth is the narrative that's dominating right now," said Alvin Tan, head of Asia FX strategy at RBC Capital Markets. "Higher rate hikes in Asia are really unable to stop the dollar from surging against Asian currencies." The past week has seen Asian central banks take proactive tightening measures to curb broad inflationary pressures, while simultaneously trying to tackle steep currency depreciation. The Monetary Authority of Singapore (MAS) and Bangko Sentral ng Pilipinas' (BSP) decision to tighten policy in off-cycle moves took markets by surprise on Thursday, but indicates the pressure policymakers are under to tackle mounting price rises. Bank of Korea also raised its policy interest rate by an unprecedented half point with the aim of pulling down inflation from 24-year highs. Despite the hawkish central bank moves, the Singaporean dollar, Philippine peso and South Korean won have weakened between 0.4% and 1.8% this week. Bank of Thailand (BoT) and Bank Indonesia (BI) are the only two major central banks in the region yet to start normalising super-loose monetary policies sparked by the pandemic. A senior director at BoT said the central bank is highly likely to raise its key policy rate at its August meeting, while BI's policy meeting next week could finally see the central begin hiking rates. "Bucking the hawkish (regional) trend could risk BI being perceived as a laggard and intensify downward pressure on the IDR," Krystal Tan, an economist at ANZ said in a research note. In Sri Lanka, the parliamentary speaker accepted President Gotabaya Rajapaksa's resignation after he fled to Singapore to escape a popular uprising brought about by his country's worst economic crisis in seven decades. The sovereign dollar bond issued by Sri Lanka was slightly below record-high yields. HIGHLIGHTS ** Indonesia June trade surplus beats forecast ** Philippines c.bank governor says "may or may not" raise interest rates in August ** China stocks rise as dismal GDP data raises stimulus hopes ** -Indonesia plans new incentives to boost palm oil exports-deputy finmin Asia stock indexes and currencies at 0418 GMT COUNTRY FX RIC FX FX YTD INDEX STOCK STOCKS DAILY % S YTD % % DAILY % Japan -0.05 -17.19 0.62 -6.89 China -0.09 -6.05 -0.24 -10.05 India -0.09 -7.02 0.28 -7.90 Indonesia -0.03 -4.97 0.12 1.78 Malaysia -0.12 -6.37 -0.12 -9.51 Philippines -0.02 -9.51 -1.22 -13.35 S.Korea -0.88 -10.19 0.29 -21.78 Singapore +0.00 -3.88 0.39 -0.68 Taiwan -0.19 -7.53 0.75 -20.15 Thailand -0.41 -9.02 -0.83 -8.06 (Reporting by Harish Sridharan in Bengaluru; Editing by Jamie Freed)