EMERGING MARKETS-Taiwan stocks post solid 2023 gains, Malaysian ringgit loses ground

* Malaysian ringgit on track for third year of losses * Thai stocks post biggest yearly drop in 15 years * Taiwan stocks gain nearly 27% this year * Thailand, South Korea markets closed for holiday (Updated at 0719 GMT) By Echha Jain Dec 29 (Reuters) - The Malaysian ringgit was set to lose most among emerging Asian currencies this year, while stock markets in Taiwan, India and South Korea were on track for bumper annual gains as rate-cut optimism continued to boost risk-on sentiment. The ringgit, which firmed 0.4% on Friday, was poised for a third consecutive yearly loss, weakening a little more than 4%. The ringgit fell more than most Asian currencies this year, largely due to the sluggish nature of Chinese economic growth throughout 2023, said KCM Trade analyst Tim Waterer. Looking into 2024, there is room for the ringgit to recover some lost ground on a softer U.S. dollar and improving dynamics on the exports front, among others, said Christopher Wong, a currency strategist at OCBC. Emerging Asian currencies have been subject to the changing expectations for U.S. interest rate policy. "For much of the year, bond yields supported the U.S. dollar, which made advances for EM currencies hard to come by," said Waterer. "However, bond yields have come off the boil in recent months, which has opened the door for EM currencies to post gains against the greenback." The Indian rupee was on track to lose 0.5% for the year. The Chinese yuan was set to lose 2.7%. The South Korean won shed 1.8% for the year, although it was not trading on Friday. Data showed South Korea's annual consumer inflation eased for a second month in December and came in below market expectations. Data from Singapore, Thailand and the Philippines earlier this month showed that inflation eased in November, likely providing central banks a little breathing room in terms of rates. The Singapore dollar, which firmed 0.2% on Friday, was the region's best performer for the year, eking out a 1.7% gain, closely followed by the Thai baht, which has risen 1.2%. The baht was not trading on Friday. Meanwhile, the region's share markets, which had been gaining ground through the week, received a further boost overnight after a stream of data from the U.S. painted a picture of a softening but resilient economy and helped cement bets that the Federal Reserve might cut rates sooner than expected. Stocks in Taiwan closed the year 26.8% higher, marking their strongest yearly performance since 2009 and making them the second best performer behind Japan. Closely following Taipei were Indian stocks, which have gained 20% for the year. Equities in Seoul recorded a 18.7% jump for the year. Equities in Bangkok ended the year 15.2% lower in their biggest yearly drop since 2008. HIGHLIGHTS: ** Vietnam's 2023 economic growth slows to 5.05%, missing government target ** Philippine c.bank sees Dec inflation at 3.6%-4.4% ** China's central bank to step up policy adjustments, drive price rises Asia stock indexes and currencies at 0719 GMT COUNTRY FX RIC FX FX INDE STOCK STOCK DAILY YTD % X S S YTD % DAILY % % Japan +0.18 -7.11 <.N2 -0.22 28.24 25> China EC> India +0.02 -0.51 <.NS -0.23 20.01 EI> Indones +0.02 +0.99 <.JK -0.35 6.24 ia SE> Malaysi +0.44 -4.03 <.KL -0.01 -2.55 a SE> Philipp +0.42 +0.54 <.PS -1.06 -1.77 ines I> S.Korea 11> Singapo +0.24 +1.73 <.ST 0.97 -0.17 re I> Taiwan +0.07 +0.04 <.TW 0.11 26.83 II> Thailan - +1.23 <.SE - -15.1 d TI> 5 (Reporting by Echha Jain in Bengaluru; Editing by Lincoln Feast and Subhranshu Sahu)