* South Korean won falls the most
* Chinese yuan is the only gainer
* Regional equity markets mixed

By Rishav Chatterjee
       July 21 (Reuters) - Most Asian emerging market
currencies dropped against a firm dollar on Friday after
economic data from the United States signalled labour market
strength, bolstering the case for the Federal Reserve to keep
interest rates higher for longer. 
    The Thai baht snapped a four-day winning streak, down
0.2% from a two month-high it touched on Thursday.
    Thailand has yet to resolve a political deadlock about its 
premiership but hopes that it can be worked out and improved
economic fundamentals have meant the baht is set to appreciate
by just over 1% this week. That would mark its third straight
week of gains. The currency has reversed course in just three
weeks, trading 1% higher so far this year.
    Meanwhile, data overnight showed the number of Americans
filing new claims for unemployment benefits unexpectedly fell
last week to the lowest level in two months.
    UOB analysts said the consensus was that Federal Reserve was
almost certain to hike rates by another 25 basis points next
week. "The question is how much further the Fed will signal
rates to increase," they said. 
    The South Korean won, which has climbed around 4%
over the month, led the losses for the day, sliding 0.9%. The
country's economic growth likely slowed a bit last quarter as
rising interest rates hurt private consumption, a Reuters poll
found. 
    The yuan was the sole gainer among Asian emerging
market curries, appreciating 0.1%. For the week, it is set to
lose 0.4%, hurt by feeble economic growth for the world's second
largest economy.
    Some investors expect China to announce more support
measures at the end of the month.
    "China's new leadership has shown greater composure and
strategic focus in responding to recent easing economic growth,"
said economists at Standard Chartered. "New policies have been
oriented towards improving long-term growth prospects," they
added.
    Singapore's dollar was trading mostly unchanged due
to investor caution ahead of inflation data due next week.
    "Singapore's CPI data release on 24 July could weigh on the
local currency, like the lower-than-expected U.K. inflation on
the sterling this week," said Philip Wee, senior FX strategist
at DBS Group.
    Equities in the region were mixed.
    Benchmark indexes in the Philippines, Thailand
 and Malaysia added between 0.3% and 0.6%. In
Indonesia, the benchmark lost 0.1% while in Taiwan
 it fell 0.8%


    HIGHLIGHTS:    
    ** Thailand to hold vote on PM next week as Pita's hopes
fade
    ** Philippines closely monitors threat of invasion of Taiwan
- defence chief
    ** TECHNICALS-Palm oil may end rally in 4,103-4,122 ringgit
zone
    
        
  Asia stock indexes and                             
 currencies at 0330 GMT                         
 COUNTRY  FX RIC        FX     FX  INDE  STOCK  STOCK
                     DAILY  YTD %     X      S  S YTD
                         %               DAILY      %
                                             %  
 Japan               -0.09  -6.48  <.N2  -0.22  24.23
                                   25>          
 China                           EC>          
 India               -0.03  +0.87  <.NS   0.00  10.35
                                   EI>          
 Indones             -0.25  +3.61  <.JK  -0.14   0.06
 ia                                SE>          
 Malaysi             -0.22  -3.30  <.KL   0.25  -5.70
 a                                 SE>          
 Philipp             -0.27  +1.81  <.PS   0.64   1.37
 ines                              I>           
 S.Korea                         11>          
 Singapo             +0.03  +1.02  <.ST   0.06   0.77
 re                                I>           
 Taiwan              -0.41  -1.60  <.TW  -0.75  20.50
                                   II>          
 Thailan             -0.20  +0.95  <.SE   0.06  -8.78
 d                                 TI>          
 
    
 (Reporting by Rishav Chatterjee in Bengaluru; Editing by Edwina
Gibbs)