* South Korean won leads decline in Asian currencies
* US dollar on front foot
* Indonesian stocks lose more than 2%

By Archishma Iyer
       May 30 (Reuters) - Most emerging Asian assets traded in the red on
Thursday, after the dollar reigned supreme driven by higher U.S. Treasury
yields, while investors braced for U.S. inflation data that could decide global
monetary policy.
    The MSCI International Emerging Market Currency Index lost
0.3% to touch a two-week low. 
    Robust economic data from the world's largest economy in addition to poorly
received U.S. bond auctions during the week triggered an exit from
risk-sensitive Asian assets. 
    At 0445 GMT, the dollar index, which measures the strength of the greenback
against six major rivals, rose overnight and was steady at 105.16.
    Friday's U.S. Personal Consumption Expenditures price index - the Federal
Reserve's preferred gauge for inflation - is likely to dictate the outlook for
the Fed's monetary policy in the near term.  
    Markets have aggressively cut their rate cut forecasts in the face of
stubborn inflationary pressures, with traders expecting a 42% chance of a 25
basis point cut at the Fed's September meeting, according to the CME FedWatch
tool. 
    Back in Asia, the South Korean won led the declines for the day,
depreciating as much as 0.9% to touch its lowest since the beginning of the
month. 
    The Indonesian rupiah followed suit, falling 0.6% to hit a one-month
low, while the Philippines peso slipped 0.4%, nestled near its November
2022 lows. 
     Other currencies such as the Singapore dollar, Thai baht,
Malaysian ringgit and the Taiwan dollar traded between 0.1% and
0.4% lower. 
    Taiwan is set to reveal its first quarter economic growth figures later on
Thursday.
    Indonesia's benchmark 10-year bond yield lingered at a two-week
high, while the yield on the 10-year Singapore bond rose as much to
3.365% to touch its highest since May 3. 
    In stock markets, the Jakarta index shed as much as 2.2% to hit its
lowest since November 23, while Seoul shares lost as much as 1.6% to hit
their lowest since late April.
    Equities in Manila, Taipei, Bangkok and Singapore
 slumped between 0.3% and 0.7%. 
    
    HIGHLIGHTS:    
    ** China's central bank vows to improve transparency, predictability of
financial markets
    ** Thai April factory output unexpectedly rises 3.43% y/y
    ** Google to invest $2 bln in data centre and cloud services in Malaysia
    
 Asia stock indexes and currencies at 0445 GMT
 COUNTRY      FX RIC           FX  FX YTD    INDEX  STOCK  STOCK
                            DAILY       %               S  S YTD
                                %                   DAILY      %
                                                        %  
 Japan                      +0.26  -10.26           -1.20  13.84
 China                      +0.00   -2.09           -0.12   4.45
 India                      -0.09   -0.25           -0.49   3.97
 Indonesia                  -0.55   -5.23           -1.25  -3.05
 Malaysia                   -0.08   -2.46            0.15  10.52
 Philippines                -0.37   -5.61           -0.70  -1.30
 S.Korea                    -0.88   -6.47           -1.52  -0.70
 Singapore                  -0.10   -2.49           -0.28   2.27
 Taiwan                     -0.32   -5.14           -1.11  19.47
 Thailand                   -0.35   -7.49           -0.39  -5.04
 

 (Reporting by Archishma Iyer; Editing by Jamie Freed)