EMERGING MARKETS-Thai baht pares losses after surprise rate hike by c.bank

* Thai baht pares losses after surprise rate hike * Thai baht, Malaysian ringgit hit 10-month lows * Indonesian rupiah lowest in 8-months * Dollar firm at 10-month highs By Roushni Nair Sept 27 (Reuters) - Thailand's baht pared early losses on Wednesday, after the country's central bank surprised markets by unexpectedly raising interest rates for an eighth straight meeting, while other Asian currencies weakened on continued dollar strength. The baht, which was down as much as 0.7% before the rate decision, was 0.5% lower by 0715 GMT. The local unit is at its lowest level since Nov. 10, 2022. Stocks in Bangkok gave up 0.3%. Thailand's central bank raised its key interest rate for an eighth straight meeting by 25 basis points to 2.50%, despite slowing economic growth, below-target inflation, and rising global uncertainties. Eugenia Victorino, head of Asia strategy at Skandinaviska Enskilda Banken, said any gains in the Thai baht from the rate hike will be limited due to a delay in the projected recovery in tourist arrivals, adding that full recovery in Chinese outbound travel is only expected by mid-2024. "Spending/travel data in China during the Golden Week will provide a near-term boost to China’s outlook. This can also provide some near-term gains to the baht, opening the space for USD/THB to decline below 35.7," Victorino added. The baht, which has lost more than 1% so far this week, has been pressured by capital outflows largely due to wider rate differentials - the interest rate difference between two countries - and the prospects of a higher import bill if international crude oil prices keep surging. Among other currencies, the Malaysian ringgit was down as much as 0.4%, hitting its lowest levels in ten months. The Indian rupee was largely flat in early trade, but on track for its worst quarter in three. The rupee has been at risk of slipping to a record low against the U.S. dollar, but likely intervention from the central bank has kept it above an all-time low hit last October. The recent surge in oil prices, which are up nearly 9% so far this month, has led to increased concerns over inflationary pressures in net importers such as Thailand and India. The dollar index last stood at 106.20, having hit a 10-month high of 106.26 on Tuesday. The Indonesian rupiah weakened as much as 0.4%, its lowest level since Jan. 11. The yield on Indonesia's benchmark 10-year bond was at 6.89%, its highest level since March 24. Bucking the sombre mood, the Philippines peso appreciated as much as 0.4%, and was poised for its best session in nearly six weeks. Philippine President Ferdinand Marcos Jr. on Tuesday rejected a proposal to reduce tariffs on imported rice as world prices of the grain are expected to go down. The country is one of the biggest importers of the staple. Stocks in emerging Asia were largely mixed, with those in Malaysia and Singapore retreating 0.3% and 0.7%, respectively, while shares in the Philippines and Indonesia advanced 1.8% and 0.4%, respectively. HIGHLIGHTS: ** Thailand relaxes rules on non-resident baht transactions - cenbank ** China's industrial profits extend slump for Jan-Aug, but pace of downturn eases ** Indonesia c.bank remains in the market to ensure FX supply-demand balance - official Asia stock indexes and currencies at 0739 GMT COUNTRY FX RIC FX FX INDEX STOCKS STOCKS DAILY % YTD % DAILY YTD % % Japan +0.01 -12.0 0.18 25.88 3 China +0.08 -5.56 0.16 0.58 India +0.01 -0.60 0.01 8.63 Indonesia -0.21 +0.31 0.32 1.40 Malaysia -0.35 -6.47 -0.37 -3.70 Philippines +0.44 -2.11 1.77 -2.92 S.Korea -0.06 -6.28 0.09 10.22 Singapore -0.04 -2.15 -0.77 -1.88 Taiwan -0.06 -4.77 0.21 15.37 Thailand -0.52 -5.38 -0.33 -10.76 (Reporting by Roushni Nair in Bengaluru; Editing by Varun H K)