EMERGING MARKETS-Most Asian FX rises; Thai baht, equities gain on growth view

* S.Korean won top gainer among Asia FX * The Philippines index declines most * Investor focus on India's June-quarter GDP By Upasana Singh Aug 31 (Reuters) - Most Asian emerging currencies edged higher on Wednesday against a softer dollar, while Thailand's baht and stocks outperformed several regional peers after the government signalled higher economic growth this year. The baht reversed course to rise 0.3% after the economy was forecast to grow 3%-3.5% this year, with a slow but steady recovery as the crucial tourism sector picks up and exports remain good. "The outlook for THB looks good as tourist arrivals appear to be picking up, plus the Bank of Thailand (BoT) has commenced rate hikes," said Alvin Tan, head of Asia FX strategy at RBC Capital Markets. The BoT raised its key interest rate by 25 basis points earlier this month for the first time in nearly four years and is expected to hike rates again at its next meeting on Sept. 28. Thailand, the second-largest economy in Southeast Asia, will release its July current account data later in the day. The dollar index, which measures the greenback against a basket of currencies, dropped 0.2% despite the prospect of higher rates for longer and lifted Asian emerging currencies. "There is some correction to the U.S. dollar today, led by the Chinese yuan after slightly better-than-consensus China purchasing managers' index data and another lower-than-expected USD/CNY fix," said Alvin Tan, head of Asia FX strategy at RBC Capital Markets. "Month-end flows are also weighing on the U.S. dollar after its recent surge." South Korea's won strengthened 0.5% and was the top gainer in the region. China's yuan and Singapore's dollar firmed 0.3% and 0.2%, respectively. The Philippine peso inched 0.1% higher. Investor focus was also on India's June-quarter gross domestic product figures, due at 1200 GMT. The country will likely record strong double-digit economic growth in the last quarter, but economists polled by Reuters expected the pace to more than halve this quarter and slow further towards the end of the year as interest rates rise. Equities in the region were broadly lower after U.S. jobs and consumer confidence data renewed concerns of further aggressive policy tightening. The U.S. jobs report "made us believe a hike of 75 basis point at the 21 September FOMC meeting is firm the default position," said Chris Weston, head of research at broker Pepperstone. Stocks in Manila dropped 1.3% to hit a one-week low. Singapore's benchmark index and equities in Jakarta retreated 0.6% and 0.8%, respectively. Markets in India and Malaysia were closed on account of public holidays. HIGHLIGHTS: ** China's factory activity extends declines as heat, COVID hit output ** S.Korea central bank says high inflation could last longer than expected ** In the Philippines, top index losers are San Miguel down 4.3% and SM Investments down 3% The following table shows rates for Asian currencies against the dollar at 0537 GMT. COUNTRY FX RIC FX FX INDEX STOCKS STOCKS DAILY % YTD % DAILY YTD % % Japan +0.26 -16.8 -0.53 -2.59 7 China +0.28 -7.78 -0.56 -11.83 Indonesia -0.05 -4.02 -0.80 7.91 Philippines +0.14 -9.16 -1.27 -7.26 S.Korea +0.52 -11.2 0.71 -17.10 6 Singapore +0.23 -3.27 -0.57 3.11 Taiwan +0.18 -8.95 0.75 -17.31 Thailand +0.26 -8.21 0.22 -0.88 (Reporting by Upasana Singh in Bengaluru; Editing by Sherry Jacob-Phillips)