EMERGING MARKETS-Ringgit leads gains, Thai bond outflows hit baht

* Malaysian ringgit sees best day in more than one month * Chinese yuan could strengthen to 6.36 vs dollar - RBC * Indonesia markets closed for a public holiday By Anushka Trivedi Oct 20 (Reuters) - The Malaysian ringgit led gains in emerging Asia on Wednesday as signs China's policymakers were moving to contain the nation's property sector troubles supported sentiment, while bond outflows knocked the Thai baht. Taiwan's dollar, the South Korean won and the Singapore dollar firmed between 0.2% and 0.4% as the greenback retreated on improving risk appetite thanks in part to upbeat U.S. corporate earnings. The positive mood saw U.S. bond rates rising further, with the 10-year Treasuries yield climbing to a five-month high of 1.673%. "Drags on Asian emerging currencies from rising long end U.S. yields appear milder, with regional sentiments anchored somewhat by easing COVID-19 trajectories, reopening and signs of policy support from Chinese authorities," Maybank analysts wrote in a note. The People's Bank of China injected 100 billion yuan ($15.65 billion) into the banking system, as several analysts predicted more targeted easing measures would be rolled out in coming months to cushion the country's troubled real estate sector. The Chinese yuan bounced to a four-month high of 6.379 per dollar at the open before paring some gains. Alvin Tan, head of Asia FX strategy at RBC Capital Markets, said the currency was very likely to touch the 6.36 level hit in May. Coming off a holiday, the ringgit saw its best day in more than one-month as the oil exporter's currency basked in surging crude prices. The Thai baht weakened 0.5% on persistent outflows from the country's sovereign bonds. Yields on the 10-year paper are up 15 basis points to 2.03% this month alone. The baht is the worst performing Asian currency this year so far, down some 10.3%. Foreign investors are reducing their bond holdings amid concerns around higher debt supply after Thailand increased its public debt ceiling in September to fund its fiscal deficit and COVID-19 spending, Barclays analysts wrote. Equities in Asia were largely upbeat, with Thailand, Singapore and Philippine stocks up around 0.3% each. Financial markets in Indonesia were shut for a holiday. HIGHLIGHTS ** Singapore's 10-year benchmark yield is up 5.2 basis points at 1.773%​​ ** Malaysia's 3-year benchmark yield is up 4.7 basis points at 2.559% ** Top gainers on Singapore index include Dairy Farm International Holdings Ltd, up 1.1% and Ascendas Real Estate Investment Trust, up 1% Asia stock indexes and currencies at 0444 GMT COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD % Japan -0.15 -9.86 0.29 6.76 China -0.15 +2.14 0.03 3.49 India +0.35 -2.68 -0.03 31.69 Malaysia +0.40 -3.20 0.07 -1.23 Philippines +0.02 -5.47 0.20 1.98 S.Korea +0.42 -7.46 -0.17 5.24 Singapore +0.10 -1.65 0.01 12.50 Taiwan +0.21 +2.17 -0.04 14.67 Thailand -0.24 -10.27 0.28 12.80 ($1 = 6.3912 Chinese yuan renminbi) (Reporting by Anushka Trivedi in Bengaluru Editing by Shri Navaratnam)