EMERGING MARKETS-Thai baht, S.Korean won extend losses as Omicron worries persist

* South Korean won at three-week low, Thai baht hits two-week low * Singapore shares up as much as 1% after two days of losses * Malaysian glove manufacturers decline By Sameer Manekar Dec 21 (Reuters) - Thailand's baht hit a two-week low on Tuesday as worries about the Omicron coronavirus variant dampened the outlook for the tourism-reliant economy, while the South Korean won and the Philippine peso also posted modest declines. Trading has been choppy in markets worldwide amid a global surge in Omicron cases, the possibility of more restrictions and thin year-end liquidity. Wall Street's main indexes and oil prices slumped overnight. In Asia, currencies were largely mixed on Tuesday, with the South Korean won lingering at a three-week low, the Philippine peso losing ground, while the Malaysian ringgit firmed 0.3%. The Thai baht fell as much as half a percent, extending the previous session's decline, as the tourism-dependent economy reported its first case of local transmission of the Omicron variant. "Depreciation pressures on (the) Thai baht continue as disruptions to domestic and regional tourism from the spread of Omicron weighed on economic recovery prospects," analysts at Mizuho Bank said in a note. The Bank of Thailand (BoT) is expected to hold interest rates at a record low on Wednesday, and through next year, according to economists in Reuters poll https://www.reuters.com/markets/asia/thailand-cbank-hold-fire-rates-wait-economy-gather-steam-2021-12-20, to bolster an economy still grappling with the fallout of the pandemic. Analysts at Australia and New Zealand Banking Group (ANZ) expect the BoT to start considering policy normalisation only in 2023. The Thai baht is the worst performing currency in the region so far this year. It is on track to lose more than 11% in 2021 - its biggest annual fall since 2000 - pressured by a strong U.S. dollar and drying up foreign inflows. Regional equities were broadly mixed, with Singaporean shares advancing up to a percent after two days of considerable declines, while Philippine equities slipped as much as 0.8%, marking their second straight day in the red. Meanwhile, Malaysian glove manufacturers such as Top Glove Corp, Hartalega Holdings and Kossan Rubber Industries declined between 2% and 8%. The U.S. Customs and Border Protection banned https://www.reuters.com/legal/government/us-customs-bans-malaysian-glove-maker-brightway-over-alleged-labour-abuses-2021-12-20 imports from Brightway Group over suspected forced labour practices. Malaysia's government and companies must address mounting allegations of workplace abuse of migrant labourers who fuel the country's economy, or face risks to its export-reliant growth model, experts have warned. HIGHLIGHTS: ** Indonesian 10-year benchmark yields edges lower to 6.433% ** India cuts import tax on refined palm oil to 12.5% to calm prices - ** Thai exports top forecast in Nov, seen up 15-16% this year - Asia stock indexes and currencies at 0340 GMT COUNTRY FX RIC FX FX INDE STOCK STOCK DAILY YTD % X S S YTD % DAILY % % Japan -0.06 -9.16 <.N2 2.00 3.84 25> China EC> India 0.00 -3.74 <.NS 0.00 18.83 EI> Indones +0.17 -2.16 <.JK -0.04 9.45 ia SE> Malaysi +0.33 -4.54 <.KL -0.07 -8.26 a SE> Philipp -0.16 -3.77 <.PS -0.22 1.15 ines I> S.Korea 11> Singapo +0.07 -3.27 <.ST 0.54 8.64 re I> Taiwan -0.01 +2.29 <.TW 0.58 20.63 II> Thailan -0.27 -11.0 <.SE 0.54 12.09 d 2 TI> (Reporting by Sameer Manekar in Bengaluru; Editing by Ana Nicolaci da Costa)