EMERGING MARKETS-Most Asian FX, stocks fall in broad sell-off on rates outlook volatility

* South Korean won the top laggard * Dollar bolstered on rate cut jitters * Taiwan dollar extends losses for third straight day By Archishma Iyer Jan 16 (Reuters) - Most Asian currencies and stocks fell on Tuesday in broad-based selling with the South Korean won and Thai baht leading the laggards, while the dollar gained as traders assessed the outlook for rate cuts by the U.S. Federal Reserve. The MSCI emerging markets currency index fell about 0.3% to hover near a one-month low. The South Korean won suffered the biggest decline, dropping as much as 0.8%, bringing its losses to more than 3% since the start of 2024. An unexpected drop in U.S. producer prices in December reinforced the view that Fed rate cuts could come as soon as March. Markets are now pricing in a 70% chance of a 25 basis points cut in March, versus 63% a week earlier, the CME FedWatch Tool showed. Traders are back projecting cuts of 160 bps this year, up from expectations of 140 bps last week, though many analysts think that is too aggressive. European Central Bank officials on Monday pushed back on expectations on slashing interest rates, with Bundesbank President Joachim Nagel saying it was too early to discuss cuts. {MKTS/GLOB] At 0355 GMT, the dollar index was at 102.88. "We continue to stay wary of the risk that DXY may inch up higher amid risks of some fine tuning in the aggressive Fed rate cut bets," analysts at Maybank wrote. Market participants now await Fed Governor Christopher Waller's speech later on Tuesday. He made a shift from his traditionally hawkish stance in November. Investors were also cautious on the uptick in Brent crude prices after geopolitical tensions in the Middle East escalated leading to a spike in shipping rates between Asia and Europe, which could potentially add to existing inflation woes. Among other Asian currencies, the Thailand baht, Philippines peso , Malaysian ringgit and the Singapore dollar slipped between 0.2% and 0.5%. The Taiwan dollar extended its losses for the third consecutive session, falling about 0.6%. The country's Democratic Progressive Party's candidate Lai Ching-te won the presidency on Saturday for the party's third consecutive term, even as the party lost its parliamentary majority. Analysts at both DBS and Saxo Markets, however, expect stability to return for North Asian currencies like the South Korean won and the Taiwan currency, as geopolitical risks remain contained, while an upturn in the semiconductor cycle is extended further. Among Asian equities, Seoul, Taipei, Bangkok fell between 0.4% and 0.6%, while Jakarta shares traded 0.3% higher. HIGHLIGHTS: ** Indonesia's benchmark 10-year bond yield rises to 6.672% ** Malaysia exempts imposition of capital gains tax, taxes on foreign-sourced income on unit trusts ** Blackstone to expand private equity headcount in Singapore in Southeast Asia push Asia stock indexes and currencies at 0355 GMT COUNTRY FX RIC FX FX YTD INDEX STOCKS STOCKS DAILY % % DAILY YTD % % Japan -0.24 -3.44 -0.48 7.34 China -0.17 -1.21 -0.62 -3.58 India -0.10 +0.30 -0.08 1.61 Indonesia -0.28 -1.28 0.39 -0.29 Malaysia -0.30 -1.94 -0.12 3.07 Philippines -0.21 -0.93 -0.40 3.15 S.Korea -0.64 -3.06 -0.54 -5.38 Singapore -0.29 -1.33 -0.31 -1.57 Taiwan -0.59 -2.12 -0.66 -2.79 Thailand -0.46 -2.66 -0.38 -1.00 (Reporting by Archishma Iyer in Bengaluru; Editing by Jamie Freed)