EMERGING MARKETS-Thai stocks kip up after govt lifts emergency measures

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh

* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3lKhL5I

* Baht hits two-week low

* Manila shares touch more than 3-month high

By Shashwat Awasthi

Oct 22 (Reuters) - Thai shares bounced from earlier losses on Thursday after the government lifted emergency measures aimed at ending months-long protests against Prime Minister Prayuth Chan-ocha and the monarchy.

Uncertainty over whether U.S. lawmakers would be able to agree on and deliver a new coronavirus relief deal weighed on other emerging Asian markets, as most currencies dipped between 0.1% and 0.3% against the dollar. stock market .SETI , the region's worst performer so far this year, gained as much as 0.4% after falling almost 1% earlier, as the government rolled back its emergency decree to de-escalate simmering tensions. lifting of emergency to curb protests is positive news for the markets," said Prakash Sakpal, senior Asia economist at Dutch bank ING.

However, Sakpal warned that the move was unlikely to result in a swift resolution of matters and would "further strengthen protesters' resolve in their anti-government movement."

Protesters had continuously defied the measures imposed last week, including bans on political gatherings of five or more people. On Wednesday, they gave the prime minister a three-day deadline to step down or face more protests. lifting of the state of emergency is a small relief rally... But key demands have not changed, especially for the PM to step down within three days from yesterday," said Kobsidthi Silpachai, head of capital markets research at Kasikornbank.

"Still, the market will take any good news it can."

Investors have been dumping Thai stocks of late and the country has already seen record equity outflows so far this year, while analysts have also warned of the risk of an even deeper sell-off. baht THB=TH weakened 0.3%, in line with other regional currencies.

Elsewhere in the region, Taiwan's dollar TWD=TP was the only outlier as it firmed 0.9% to continue its bullish rise.

Malaysian equities .KLSE were subdued, but fared slightly better than the rest of the region on the back of some signs of easing political worries.

The biggest party in Malaysia's ruling alliance on Wednesday pledged its support for Prime Minister Muhyiddin Yassin, providing him temporary reprieve following opposition leader Anwar Ibrahim's recent claim to form a new government. Philippines recorded its lowest daily increase in coronavirus cases in more than six weeks on Wednesday, helping stocks .PSI rise more than 1% to their highest since July 7.

HIGHLIGHTS:

** Thailand's 3-year benchmark yield is down 2 basis points at 0.66%

** Top gainers on Thailand's SETI include Gold Property Fund Lease Hold GOLDPFu.BK up 17.65%, Thai-German Products TGPRO.BK up 16.67% and TU Dome Residential Complex Leasehold Property Fund TU-PFu.BK up​ 10.96%

** In the Philippines, top index gainers are LT Group LTG.PS up 6.98%, Robinsons Land RLC.PS up 6.04% and San Miguel Corp SMC.PS up ​3.63%

Asia stock indexes and currencies at 0655 GMT

COUNTRY

FX RIC

FX DAILY %

FX YTD %

INDEX STOCKS DAILY % STOCKS YTD %

Japan

JPY=

-0.02

+3.85

.N225

-0.70

-0.77

China

CNY=CFXS

-0.21

+4.49

.SSEC

-0.35

8.63

India

INR=IN

-0.05

-3.05

.NSEI

-0.34

-2.23 Indonesia

IDR=

-0.27

-5.26

.JKSE

-0.26

-19.31 Malaysia

MYR=

-0.14

-1.40

.KLSE

-0.03

-6.09 Philippines

PHP=

-0.08

+4.33

.PSI

1.05

-18.82

S.Korea

KRW=KFTC

-0.09

+2.07

.KS11

-0.67

7.16 Singapore

SGD=

-0.15

-0.86

.STI

-0.03

-21.66

Taiwan

TWD=TP

+0.88

+5.12

.TWII

0.31

7.67 Thailand

THB=TH

-0.29

-4.32

.SETI

0.44

-22.66