EMERGING MARKETS-Asian currencies struggle ahead of Powell’s testimony, Indonesian rupiah top loser

* Thai stocks eye best day in 8 weeks * Jakarta stocks mark near 7-week low * Thai baht faces worst day in five * Indonesian rupiah hits near 8-week low By Roushni Nair March 7 (Reuters) – Most Asian currencies slipped on Tuesday, led by the Indonesian rupiah and Thailand’s baht, as investors pulled back from risky assets ahead of Federal Reserve Chair Jerome Powell’s testimony that could throw light on the size of future rate hikes. The rupiah weakened as much as 0.49% to its lowest since Jan. 12, while the Chinese yuan and South Korea’s won eased 0.1% and 0.2%, respectively. However, losses in emerging Asian currencies were limited due to a slightly softer greenback. The U.S. dollar index , which measures it against six major rivals, slipped after shedding 0.26% overnight. “I forecast most emerging Asian currencies to be stronger in the second half of this year, mainly due to an expected weakness in the U.S. dollar,” said Poon Panichpibool, a markets strategist at Krung Thai Bank. Powell is due to deliver his semi-annual testimony before Congress later in the day. It will be closely watched for clues regarding the extent and duration of the U.S. central bank’s restrictive monetary policy, which is aimed at curbing sticky inflation. Market participants are also keenly awaiting the U.S. February jobs report due on Friday. Asian stock markets were generally higher, but shares in Jakarta dipped as much as 0.6%. Indonesian President Joko Widodo on Monday expressed his support for an appeal against a controversial court ruling that called for the 2024 presidential and general elections to be delayed. “A lot of foreign investors might still be interested in Indonesian equities as the consumer market is huge and the current valuation of Jakarta exchange is quite attractive,” said Panichpibool, adding that the political situation would not cast a prolonged negative effect on the rupiah. In Thailand, headline consumer prices were 3.79% higher in February than a year earlier, rising less than what analysts had forecast mainly due to lower energy and food prices. The Thai baht weakened as much as 0.49%, while stocks in Bangkok gained 0.8%. In the Philippines, annual inflation eased for the first time in six months in February, owing to lower transport and food prices. However, an interest rate hike at the central bank’s March 23 meeting looks almost certain, as inflation still remains above its target range of 2% to 4%. The Philippine peso weakened as much as 0.16%, while stocks in Manila advanced 1.03%. Shares in Singapore and Malaysia advanced 0.22% and 0.47%, respectively, while stocks in China retreated 0.84%. Separately, most emerging Asia ex-China equity markets witnessed foreign outflows in February as strong U.S. economic data stirred worries that the Fed would keep rates higher for longer than anticipated. HIGHLIGHTS: ** Indonesian 10-year benchmark yields rise 1.1 bps to 6.968% ** Malaysia cenbank to hold rates at 2.75% in March – Reuters Poll ** Markets in India closed for a public holiday ** China’s January-February exports down 6.8% y-o-y Asia stock indexes and currencies at 0658 GMT COUNTRY FX RIC FX FX INDEX STOCKS STOCKS DAILY % YTD % DAILY YTD % % Japan +0.00 -3.53 0.25 10.08 China India – +0.99 – -2.18 Indonesi -0.44 +1.35 -0.42 -1.05 a Malaysia +0.02 -1.68 0.46 -2.42 Philippi -0.09 +1.03 0.80 2.41 nes S.Korea Singapor -0.02 -0.41 0.17 -0.20 e Taiwan -0.08 +0.35 0.60 12.17 Thailand -0.30 +0.14 0.80 -2.93 (Reporting by Roushni Nair in Bengaluru; Editing by Subhranshu Sahu)