EMERGING MARKETS-Asian stocks rise amid US rate outlook; currencies muted

* Indonesian inflation eases in June * S.Korean won declines 0.4% during longer trading hours * Investors eye raft of inflation prints due this week (Updates at 0851 GMT) By Roshan Thomas July 1 (Reuters) - Most Asian stocks gained on Monday as data showing cooling U.S. inflation data boosted expectations of the Federal Reserve cutting interest rates, while currencies traded muted, with the South Korean won declining the most. Stocks in Malaysia and India gained 0.4% and 0.5%, respectively, while Philippines equities slipped 0.2%. Indonesian stocks rose 0.8% in their fourth consecutive session of gains, while the rupiah appreciated 0.3%. Data showed the country's annual inflation fell to a nine month-low 2.51% in June, aligning with Bank Indonesia's (BI) target range of 1.5% to 3.5%. "We further reduce our headline inflation forecast and maintain our view that BI will remain on hold through the rest of this year – but stay on alert for the risk of more rate hikes," Barclays analysts wrote. Data late on Friday showed U.S. prices were unchanged in May, while consumer spending rose moderately, a trend that could draw the Federal Reserve closer to start cutting interest rates this year. Following the inflation data, Fed funds futures slightly raised the chances of easing in September to around 67%, from about 65% late Thursday, according to LSEG calculations. Back in Asia, the South Korean won weakened 0.4% during longer trading hours on the dollar-won onshore market. Data showed exports in South Korea grew for a ninth straight month in June, buoyed by chip demand, but at a slower pace than analysts expected. Manufacturing activity in China fell for a second month in June, while services activity slipped to a five-month low, an official survey showed on Sunday, keeping alive the prospect for further stimulus. The yuan was largely unchanged. The Singapore dollar gained 0.1% while the Malaysian ringgit and Thai baht were largely flat. Meanwhile, the underwhelming performance of the Japanese yen , which fell to its lowest since late 1986 on Friday, has sparked concerns about exports in major trade partners like China and South Korea further intensifying pressure on Asian currencies. Upcoming inflation data from Thailand, Taiwan, the Philippines and South Korea this week, which will help highlight the pressures on those economies. Barclays analysts said that with consistently lower-than-expected inflation, the Philippine central bank is shifting focus on growth. They expect the Bangko Sentral ng Pilipinas (BSP) to start lowering its policy rate from August, becoming the first central bank in emerging Asia to pivot and even beat the Fed. HIGHLIGHTS: ** Japan downgrades Q1 GDP on construction data corrections ** Asia's factory activity expands in June on solid global demand Asia stock indexes and currencies at 0851 GMT Japan -0.12 -12.4 <.N2 0 25> 0.12 18.43 China EC> India -0.06 -0.27 <.NS 0.52 11.06 EI> Indonesi +0.31 -5.67 <.JK 0.82 -2.08 a SE> Malaysia +0.04 -2.61 <.KL 0.43 9.78 SE> Philippi -0.24 -5.51 <.PS -0.20 -0.79 nes I> S.Korea 11> Singapor +0.10 -2.58 <.ST 0.06 2.92 e I> Taiwan -0.29 -5.56 <.TW 0.11 28.60 II> Thailand +0.04 -6.92 <.SE -0.23 -8.33 TI> (Reporting by Roshan Thomas in Bengaluru; Editing by Sherry Jacob-Phillips and Savio D'Souza)