EMERGING MARKETS-Asian stocks, FX hold ground, but held back by stubborn Fed

* Thai baht worst performer in 1H * All Asian currencies set to end 1H in red * Equities mixed over 1H; Taiwan set for around 29% gain * Traders await US PCE data due out later in day By Roshan Thomas June 28 (Reuters) - Most Asian currencies and stocks held their ground on Friday ahead of key U.S. inflation data, but were on track to end the first half of the year deep in the red, pressured by the Federal Reserve's frustratingly slow shift to lower rates. The Thai baht, South Korean won, Indonesian rupiah and the Philippine peso were among the worst performing currencies among emerging Asian markets, weakening between 5% and 7% in the first half. "While a firm U.S. dollar and domestic (Thai) politics serve as near-term headwinds for the currency, we retain our sanguine outlook for the Thai baht in the later part of this year," analysts at MUFG said in a client note. A slew of court cases against Thai politicians, including incumbent prime minister Srettha Thavisin, has put domestic politics and financial markets on edge, creating uncertainty in the Southeast Asia's second-largest economy. Other currencies such as the Singapore dollar and the Malaysian ringgit also declined by 2.9% and 2.7%, respectively, in the first half of 2024. In contrast, the Indian rupee was the top performer in the region, receding only marginally so far this year, helped by improving economic fundamentals and foreign inflows. "Growth has been healthy in India, is likely to continue to flourish and inflation is also within target, so the RBI (Reserve Bank of India) is in no hurry to slash rates to be more growth supportive," analysts at Maybank wrote. "This view is supported by India's bond inclusion into JP Morgan EM Index starting today, which will attract billions of dollars in foreign inflows," they said, adding that they expect a tight range of 83.00 to 84.00 rupee per dollar to hold. On Friday, the Taiwan dollar, Malaysian ringgit, and Singapore dollar were largely unchanged. The South Korean won gained 0.3%, while the Thai baht slipped marginally. Traders are closely eyeing the upcoming U.S. personal consumption expenditures (PCE) reading later today as they seek clues on the direction of Fed policy. In Asia, traders are bracing for a deluge of inflation data next week from Indonesia, South Korea, the Philippines and Thailand to get read of the likely direction of regional monetary policy. Among equities, shares in Jakarta rose 1.2%, while those in Manila, Seoul, and Taipei were up between 0.3% and 0.8%. Equities were mixed over the first-half of 2024. Shares in South Korea, Malaysia, and India were set to end the half-year between 5% and 11% in green, while Taiwan shares were poised for a massive near 29% gain boosted by chip stocks. HIGHLIGHTS: ** Indonesian 10-year benchmark yields slip to 7.080% ** Indian bond yields seen easing on global index inclusion ** Dollar breaks 161 yen in countdown to U.S. inflation release ** Joe Biden and former President Donald Trump clash at their first debate Asia stock indexes and currencies at 0337 GMT COUNTRY FX RIC FX FX INDE STOCKS STOCK DAILY YTD % X DAILY S YTD % % % Japan -0.14 -12.3 <.N2 0.72 18.41 6 25> China EC> India +0.07 -0.23 <.NS 0.00 10.64 EI> Indones +0.06 -6.04 <.JK 1.24 -3.00 ia SE> Malaysi +0.02 -2.69 <.KL 0.09 9.05 a SE> Philipp +0.14 -5.54 <.PS 0.75 -0.18 ines I> S.Korea 11> Singapo +0.03 -2.86 <.ST -0.27 2.90 re I> Taiwan +0.15 -5.37 <.TW 0.54 28.44 II> Thailan -0.14 -7.29 <.SE -0.50 -7.98 d TI> (Reporting by Roshan Thomas in Bengaluru; Editing by Sam Holmes)