EMERGING MARKETS-Asian stocks, currencies weaken as vaccine rally fades

* Bullish bets raised on Asian emerging currencies - Reuters poll * Palm oil shares boost Malaysia stock index * Philippine stock markets closed due to typhoon * Bank Indonesia sees room to ease rates -central bank governor By Anushka Trivedi Nov 12 (Reuters) - Most of emerging Asian currencies and stock markets settled back in cautious trade on Thursday after the initial burst of optimism over headway in a coronavirus vaccine trial. Thai stocks led losses with a 1% drop, followed by Indonesia and Singapore, giving up some gains from a rally earlier this week that was powered by positive coronavirus vaccine news from U.S. drug maker Pfizer Inc . Most regional currencies drifted lower against a steady greenback, although the Taiwanese dollar was an outlier, jumping more than 1% for a second straight day. "Challenges remain on the time horizon, manufacturing capacity, delivery and storage of the vaccine even if it is proven safe and effective," DailyFX strategist Margaret Yang wrote in a note. Concerns about distribution of the vaccine were at the forefront, especially in highly populated countries like India and Indonesia, which lack infrastructure required to carry out such a large-scale operation. The Indonesian rupiah fell 0.5%, marking its worst session in almost two-weeks, as its central bank said there was room to ease rates to support economic growth. The currency had firmed on the vaccine news and recent capital inflows but investors are taking a pause ahead of the central bank meeting next week, Bank of Singapore FX analyst Moh Siong Sim said. He said it was a "close call" whether Bank Indonesia would actually slash interest-rates since it has favoured stabilising rupiah in the past. Meanwhile, a Reuters poll showed investors went long on all Asian emerging currencies but sentiment towards the Indian rupee remained frail on suspicions that the country's central bank was curbing its appreciation by buying dollars. Among equity markets, Malaysia's benchmark index rose 1% to be the sole gainer, lifted by palm oil producers as prices of the commodity climbed. Meanwhile, the Philippine stock markets were closed due to a typhoon. HIGHLIGHTS ** Thailand's 10-year government bond yields are down 2.5 basis points at 1.37% ** Top gainers on Malaysia index: Genting Bhd , up 4%, and Genting Malaysia Bhd, up​ 2.6% ** Top losers on Thailand's SETI include Thai Energy Storage Technology PCL <3K-BAT.BK>, down 28.9%, and Apex Development PCL, down 14.3% Asia stock indexes and currencies at 0730 GMT COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD % Japan +0.14 +3.17 0.68 7.88 China +0.01 +5.04 -0.11 9.46 India -0.32 -4.34 -0.34 4.42 Indonesia -0.50 -1.84 -0.90 -13.33 Malaysia -0.15 -1.06 0.95 -0.23 Philippines +0.15 +4.55 - -10.12 S.Korea -0.43 +3.73 -0.41 12.65 Singapore -0.09 -0.43 -0.26 -16.03 Taiwan +0.45 +4.89 -0.30 10.21 Thailand -0.13 -1.32 -1.24 -15.90 (Reporting by Anushka Trivedi in Bengaluru; Editing by Anil D'Silva)