MOST Asian currencies fell on Tuesday, with the Thai baht and the South Korean won leading the laggards, as sluggish data from China led to renewed worries about its unstable growth.

       The South Korean won fell 0.8% to hit a nearly two-week low and the baht slipped about 0.5%.

       Optimism over additional stimulus measures from China on Monday did not last long after a private-sector survey showed the country's services activity expanded at the slowest pace in eight months in August, revealing that the stimulus measures have not had a tangible effect in propping up its faltering economy.

       Stocks in Shanghai and the Chinese yuan fell about 0.7% and 0.3%, respectively.

       "There was a bit of the risk sentiment off following the weak China services PMI," said Ken Cheung Kin Tai, Chief Asian FX Strategist from Mizuho Bank.

       Some of the encouraging developments in China's property market should provide some support to the currencies, he added.

       The Malaysian ringgit, Singapore dollar and the Indonesian rupiah fell between 0.2% and 0.4%.

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       Separately, annual inflation in South Korea accelerated to 3.4% in August with the month-on-month rate growing the fastest since early 2017.

       Thailand's inflation, too, grew faster than analysts' expectations and inflation in the Philippines quickened for the first time in seven months.

       "The August upside surprise now has Bangko Sentral ng Pilipinas on notice, although we doubt one data point will be enough for Governor Remolona to flip back into tightening mode,"

       Nicholas Mapa, a senior economist with ING said in a research note. Moreover, investors will look out for a slew of speeches from the U.S. Federal Reserve officials throughout the week.

       Markets have priced in a 93% chance of the Fed keeping rates unchanged later this month.

       Locally, Malaysia is set to reveal its key policy rate later this week, in which it is expected to stand pat as most of its Asian peers.

       Among Asian equities, stocks in Singapore, South Korea, Malaysia and Indonesia traded lower between 0.1% and 0.4%.

       However, shares in Thailand and Philippines rose 0.2% and 0.5%.

       HIGHLIGHTS:

       ** Indonesia's benchmark 10-year bond yield rises to 6.430%

       ** Thai central bank to revise down forecasts for 2023 growth and inflation

       ** Indian shares extend gains; small-, mid-caps hit new record highs - Reuters