* Thai baht snaps 5-session losing streak
* Malaysia stocks hit highest since Nov 25, 2022
* Philippine stocks at July-end high

By Echha Jain
       Jan 9 (Reuters) - Most emerging Asian currencies and
stocks edged higher on Tuesday, with the Thai baht and South
Korean won leading gains, as traders awaited inflation data from
the U.S. for clues on the Federal Reserve's monetary policy
stance this year.
    The baht strengthened 0.5% against the U.S. dollar
after a major sell-off on Monday following Prime Minister
Srettha Thavisin's rate cut remarks. The currency also snapped a
five-day losing streak on Tuesday.
    The South Korean won jumped 0.3%, its biggest
intraday gain since Dec 28, 2023, while shares in Seoul
were largely unchanged.
    The Bank of Korea (BOK) on Thursday is expected to keep its
policy rate unchanged for an eight consecutive meeting as
inflation eases and keep it steady until at least the third
quarter despite some concerns around financial stability, a
Reuters poll found.
    "Most Asian central banks are likely to follow the BOK
stance, waiting for greater evidence of a persistent
deceleration of inflation before deciding on rate cuts later
this year," said Wei-Liang Chang, macro strategist at DBS Bank. 
    Among equities, stocks in Manila advanced 0.8% and
maintained the July-end high they touched on Monday. Kuala
Lumpur stocks added as much as 0.6%, hitting their
highest level since Nov 25, 2022. 
    Comments from Fed officials overnight helped soothe
sentiment, with Governor Michelle Bowman retreating from her
persistently hawkish view and Atlanta President Raphael Bostic
reiterating his earlier view that he does anticipate rate
reductions this year.
    Traders are awaiting U.S. inflation data for December due
later in the week for an indication of when the Fed might start
cutting interest rates. A rate cut from the Fed would be
favourable to Asian currencies and equities. 
    Markets are now anticipating a 62% chance that the Fed could
begin easing rates as early as March, compared to a nearly 90%
chance a week ago, according to the CME FedWatch Tool.
    "Although the market has priced in a Fed rate cut in March,
investors should be wary about the possibility of a delayed
move, which will pose headwinds to Asia's capital inflows," said
Gary Ng, Senior Economist, Asia Pacific with Natixis.
    Elsewhere, the Malaysian ringgit ticked up 0.2%,
while the Philippine peso slipped 0.4%. The Indonesian
rupiah was flat.
    Equities in Shanghai, Bangkok and Singapore
 advanced between 0.2% and 0.5%. 
    All eyes are on Taiwan's presidential and parliamentary
elections on Jan. 13, an election that China, which views the
island as its own territory despite the strong objections of
Taipei's government, has cast as a choice between war and peace.
    "Geopolitical risks over Taiwan are also a risk to watch,
with reduced tensions post elections likely to catalyse a
rebound in RMB and Asian currencies," DBS Bank's Chang said. 
    Markets are also looking forward to a raft of data due this
week, including inflation data from India and China.

    HIGHLIGHTS:    
    ** Thailand has received a green light to borrow to finance
its controversial 500 billion baht digital handout scheme
    ** Indonesia temporarily grounds three Boeing 737 MAX 9
planes operated by Lion Air
    ** Vietnam's National Assembly will start a four-day
extraordinary meeting next Monday
    
 Asia stock indexes and                               
 currencies at 0407 GMT                          
 COUNTRY  FX RIC        FX     FX  INDE  STOCKS  STOCK
                     DAILY  YTD %     X   DAILY  S YTD
                         %                    %      %
 Japan               +0.40  -1.80  <.N2   1.20   0.93
                                   25>           
 China                           EC>           
 India               +0.08  +0.17  <.NS    0.66  -0.35
                                   EI>           
 Indones             +0.03  -0.77  <.JK   -1.16  -1.02
 ia                                SE>           
 Malaysi             +0.15  -1.12  <.KL    0.30   3.13
 a                                 SE>           
 Philipp             -0.39  -0.79  <.PS    0.83   3.32
 ines                              I>            
 S.Korea                         11>           
 Singapo             -0.02  -0.66  <.ST    0.47  -1.18
 re                                I>            
 Taiwan              +0.03  -0.83  <.TW    0.02  -1.98
                                   II>           
 Thailan             +0.46  -2.06  <.SE    0.40   0.59
 d                                 TI>           
 
    
 (Reporting by Echha Jain in Bengaluru; Editing by Kim Coghill)