* Malaysian ringgit on track for a third year of losses
* Thai stocks post biggest yearly drop in 15 years
* Taiwan stocks up nearly 27% in 2023

By Echha Jain
       Dec 29 (Reuters) - The Malaysian ringgit was set to lose
most among emerging Asian currencies this year, while stock
markets in Taiwan, India and South Korea were set for bumper
yearly gains as rate-cut optimism continued to boost investors'
risk-on sentiment.
    The ringgit, which firmed 0.4% on Friday, was on
track to record a third consecutive year of losses, depreciating
more than 4% for the year. 
    The ringgit suffered more than most Asian currencies this
year in large part to the sluggish nature of Chinese economic
growth throughout 2023, said KCM Trade analyst Tim Waterer.
    Emerging Asian currencies have been subject to the changing
expectations for U.S. interest rate policy.
    "For much of the year, bond yields supported the U.S. dollar
which made advances for EM currencies hard to come by," said
Waterer. "However, bond yields have come off the boil in recent
months which has opened the door for EM currencies to post gains
against the greenback."
    The Indian rupee was on track to lose 0.5% for the
year. The Chinese yuan was set to lose 2.8% for the
year. 
    The South Korean won shed 1.8% for the year,
although it was not trading on Friday. 
    Data on Friday showed South Korea's annual consumer
inflation eased for a second month in December and came in below
market expectations.
    Data from Singapore, Thailand and the Philippines earlier
this month also showed that inflation eased in November, likely
providing central banks a little breathing room in terms of
rates.
    The Singapore dollar, which appreciated 0.2% on
Friday, was the best performing currency in the region, eking
out a 1.7% gain for the year closely followed by the Thai baht
 which was not trading on Friday but has gained 1.2%
this year. 
    Meanwhile, the regional share market, which had been gaining
ground through the week, received further boost overnight after
a stream of data from the U.S. painted a picture of a softening
but resilient economy and helped cement bets the Federal Reserve
might cut its policy rate sooner than expected.
    Stocks in Taiwan were on track to end the year 26.7%
higher. This would be its strongest yearly performance since
2009 and would make it the second best performing major Asian
stock market this year, behind Japan. 
    Closely following Taipei were India stocks which had
gained 20% for the year. Equities in Seoul recorded a
18.7% jump for the year.
    Bangkok's benchmark index ended the year 15.2%
lower, its biggest yearly drop since 2008. 
        
    HIGHLIGHTS:    
    ** Vietnam 2023 economic growth slows to 5.05%, missing
government target
    ** Philippines c.bank sees Dec inflation at 3.6%-4.4%
    ** China says it won't turn a blind eye to Philippines'
repeated 'provocations'
    
  Asia stock indexes and                                     
 currencies at 0429 GMT                               
 COUNTRY   FX RIC        FX     FX    INDEX   STOCKS   STOCKS
                      DAILY  YTD %           DAILY %    YTD %
                          %                           
 Japan                -0.03  -7.30            -0.34    28.09
 China                                              
 India                +0.02  -0.51             -0.22    20.03
 Indonesi             -0.25  +0.72             -0.38     6.21
 a                                                    
 Malaysia             +0.37  -4.10             -0.02    -2.57
 Philippi             +0.27  +0.40             -0.34    -1.06
 nes                                                  
 S.Korea                                            
 Singapor             +0.16  +1.65              0.79    -0.35
 e                                                    
 Taiwan               -0.15  -0.19             -0.02    26.67
 Thailand                 -  +1.23                 -   -15.15
    

    
 (Reporting by Echha Jain in Bengaluru; Editing by Lincoln
Feast)