EMERGING MARKETS-Asian FX, stocks tepid as virus risk keeps mood gloomy

* Markets, which were closed for holiday on Tuesday, resume trade * Singapore reimposes strict curbs, local dollar trips * India's financial markets closed for the day By Anushka Trivedi July 21 (Reuters) - Asia's equity and currency markets were subdued on Wednesday as the threat of the highly contagious Delta COVID-19 variant clouded the region's economic outlook, with Philippine stocks falling 2% to their lowest level in nearly eight weeks. Singapore shares were little changed but the local dollar fell 0.2% after tight curbs were reimposed for one month in the country, dealing a blow to its reopening plans. South Korea and Taiwan equities dropped 0.3% each, but their currencies, were flat, while the Thai baht and the Indonesian rupiah eased 0.2% each. Despite some positivity in broader stock markets after Wall Street firmed overnight, investors were cautious about Asia as most countries in the region remain under lockdowns that have curtailed economic activity as virus cases climb. Overall, the mood was sombre with investors favouring safe-haven assets. The U.S. dollar hit a three-month high despite softer Treasury yields. "The pace of losses in emerging Asia's currencies seems to be moderating, but most remain near interim lows versus the dollar," Maybank analysts wrote in a note. "The recent spate of contagion spikes and accompanying curbs in regional economies have notably weighed on sentiments." That prompted Manila-based Asian Development Bank to slash 2021 growth forecast for Indonesia, Thailand and Malaysia on Tuesday and revise down its projections for "developing Asia". Philippines' stock index dropped to its lowest since May 27 after trade resumed following a holiday, but the peso firmed 0.5% as the net oil importer's currency benefited from a recent slump in crude prices. But analysts warned the fact that the central bank stuck to its growth forecast for this year and that COVID-19 cases have fallen recently were not enough to sustain a currency rally. "The peso was ripe for a correction after being oversold... but short term pressure should remain until overall sentiment improves further as the country has been hit with a spate of not so positive developments of late," said Nicholas Mapa, senior economist at ING. India's financial markets, were shut for a holiday. HIGHLIGHTS ** Malaysia's 10-year benchmark yield was down 7.9 basis points at 3.115%​​ ** Philippine stocks on track to drop for fourth session ** Top index losers in Philippines: Alliance Global Group Inc down 5% and Metropolitan Bank and Trust Co down 4.2% Asia stock indexes and currencies at 0425 GMT COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD % Japan -0.05 -6.05 0.67 0.47 China +0.15 +0.82 0.60 2.45 Indonesia -0.21 -3.47 0.33 0.97 Malaysia -0.42 -5.19 0.05 -6.54 Philippines +0.44 -4.69 -1.79 -9.39 S.Korea -0.01 -5.59 -0.28 12.19 Singapore -0.18 -3.40 0.01 9.42 Taiwan +0.00 +1.51 -0.30 18.62 Thailand -0.15 -8.80 -0.03 6.14 (Reporting by Anushka Trivedi in Bengaluru; Editing by Ana Nicolaci da Costa)