EMERGING MARKETS-Asian stocks slip on Fed gloom, political concerns grip Thailand

    * Graphic: World FX rates tmsnrt.rs/2egbfVh
    * Graphic: Foreign flows into Asian stocks tmsnrt.rs/3f2vwbA
    * S. Korea, Taiwan shares down more than 3%
    * Philippine cenbank expected to stand pat on rates
    * Indian shares set to snap three-day winning streak

    By Shriya Ramakrishnan
    Aug 20 (Reuters) - The Thai baht weakened on Thursday as the
arrest of anti-government activists added to a growing list of
political concerns while shares in South Korea and Taiwan sank
as the U.S. Federal Reserve signalled it was worried about the
pace of economic recovery.
    Stock markets in Seoul and Taiwan, both
export-reliant and highly sensitive to global growth, ended more
than 3% lower as the comments from Fed policymakers, and their
failure to push ahead with steps to control bond market yields,
sent a wave of jitters through financial markets.
    The won was the worst hit among Asian currencies,
down 0.5% against the greenback, while the Taiwanese dollar
 registered a fourth straight session of gains, up 0.4%.
    In Thailand, the baht slipped as much as 0.7%
during the day before regaining some ground, while shares
 were down around 0.7%.
    Thai police on Thursday arrested four anti-government
activists over a July 18 protest that triggered a wave of
student-led demonstrations demanding a new constitution and the
resignation of the military-backed government.
    The Philippine peso swung between positive and
negative territory ahead of a central bank rate decision due
later in the day, while Manila shares traded 0.6% lower.
    Bangko Sentral ng Pilipinas (BSP) was widely expected to
take a breather after cutting interest rates four times to a
record low of 2.25%, a Reuters poll showed. 
    Singapore shares fell more than 1%, pulled down by
losses in index heavyweight Wilmar International,
after one of its largest shareholders unveiled plans to cut its
stake in the agribusiness firm.
    The Indian rupee weakened 0.2% and the blue-chip
NSE Nifty 50 index was on course to end a three-day
winning streak as the Fed effect and a record daily jump in 
coronavirus infections weighed on sentiment. 
    Yields on India's 10-year government bonds, one
of the highest in the region after Indonesia, hovered at their
highest level since early June at 6%. 
    "Much of the bond underperformance can be pinned on an
uncertain fiscal/bond outlook and inflation trend," DBS Bank
analysts said, adding that inflation was on course to stay above
the central bank's 2% to 6% target range in the third quarter. 
    Financial markets in Malaysia and Indonesia were closed for
holidays. 
    
    HIGHLIGHTS:
    ** Top losers on the Singapore STI include Wilmar
International Ltd down 9.67% at S$4.39; Hongkong Land
Holdings Ltd down 3.12% at S$3.73
    ** Thailand's 10-year government bond yields are up 1 basis
point at 1.33%, while its 3-year benchmark yield is up 1 basis
point at 0.6%
    ** In the Philippines, top index losers are Metropolitan
Bank and Trust Co down 3.61% at 34.7 peso; BDO Unibank
Inc down 3% at 89.05 peso
    
    
  Asia stock indexes and                                    
 currencies at   0722 GMT                              
 COUNTRY   FX RIC          FX  FX YTD   INDEX  STOCKS  STOCK
                      DAILY %       %           DAILY  S YTD
                                                    %      %
 Japan                  +0.14   +2.51  <.N225   -1.00  -3.28
                                       >               
 China     <CNY=CFXS    +0.04   +0.68  <.SSEC   -1.30  10.29
           >                           >               
 India                  -0.22   -4.81  <.NSEI   -0.96  -7.14
                                       >               
 Philippi               +0.02   +4.15           -0.61  -23.1
 nes                                                       6
 S.Korea   <KRW=KFTC    -0.48   -2.57  <.KS11   -3.66   3.48
           >                           >               
 Singapor               +0.01   -1.87           -1.61  -21.8
 e                                                         1
 Taiwan                 +0.40   +2.43  <.TWII   -3.26   3.05
                                       >               
 Thailand               -0.41   -4.62  <.SETI   -0.69  -17.7
                                       >                   3
 


 (Reporting by Shriya Ramakrishnan in Bengaluru; Editing by
Patrick Graham and Subhranshu Sahu)
  

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