MOST Asian currencies were muted on Thursday, while equities struggled to make headway, as investors digested a dim economic outlook from the region's largest economy coupled with paring back of bets on early rate cuts in the United States.

       The MSCI emerging markets currencies index hovered near a one-month low, as of 0650 GMT.

       The dollar index, which measures the greenback against six major rivals, was perched at 103.2.

       Investors maintained a cautious stance following weak economic data from China, Asia's largest trading partner, showing the persistent pressure of a protracted property crisis and subdued demand.

       The yuan was flat, while Chinese stocks fell as much as 2.6% to hit almost a three-year low.

       Stronger U.S. retail sales data showed that the Federal Reserve may not quickly move to slash interest rates, with the CME FedWatch tool now showing a rough 60% chance of a rate cut in March, down from about 70% previously.

       The South Korean won was the lead gainer for the day in the region, rising as much as 0.3%, although it lingered near its November lows.

       StarPicks

       Aparthotels fast becoming the pinnacle of hospitality

       The Taiwan dollar reversed gains to end flat.

       "Asian currencies, mainly the Korean won and Taiwan dollar have seen quite a tear of late, given the less favourable mix of sell-off in equities, higher yields, China growth concerns and geopolitical risks," said Christopher Wong, a currency strategist at OCBC.

       Wong, however, sees a return of portfolio inflows into Asia as central bank pivots are still expected this year.

       Citi analysts estimated there was a combined $5.2 billion of net capital outflows in Asia due to a dollar short squeeze, particularly from Taiwan, South Korea and China, the largest since China's COVID-19 lockdowns and the Russia-Ukraine conflict's escalation in March 2022.

       Other Asian currencies such as the Philippines' peso eked out marginal gains, while the Indonesian rupiah and the Malaysian ringgit were flat. The Thai baht fell marginally.

       Among Asian equities, those in Singapore, Manila, Mumbai and Kuala Lumpur were down between 0.1% and 1.1%, while Jakarta and Taipei markets rose 0.6% and 0.4%, respectively.

       Pakistan's benchmark index fell as much as 1.6% after the country conducted strikes inside Iran targeting separatist militants, while the benchmark 10-year bond yield fell as much as 1.6%, hitting its lowest since early February 2023.

       HIGHLIGHTS:

       ** Indonesia's benchmark 10-year bond yield falls to 6.692%

       ** India's LTIMindtree punished for "overpromising and underdelivering"

       ** Vietnam tightens limits on investors' stakes in banks - Reuters