* Indonesian rupiah hits over 3-month low * U.S. 2-year Treasury yield hits highest since June 2007 * Shares in Philippines, South Korea among top losers * Data from Taiwan, Malaysia and Singapore awaited By Nausheen Thusoo July 7 (Reuters) - The Indonesian rupiah weakened to its lowest level in more than three months on Friday, leading Asian currency losses, as the U.S. dollar remained firm on persistent bets the Federal Reserve would keep interest rates higher for longer. Regional equities dived across the board as resilient U.S. jobs data sparked a sell-off in U.S. Treasuries, which in turn reverberated in bond markets across Asia on strengthening expectations the Fed was not yet done with its rate hiking cycle. "We still cannot rule out potential for a USD pullback in the near-term but the higher for longer narrative could continue to keep the USD-Asia pairings buoyant on dips," Maybank analysts said in a note. Elevated Treasury yields could continue to buoy U.S.-Asia currency pairs unless U.S. non-farm payrolls data surprises to the downside later on Friday, the analysts added. The dollar held tight ranges after strong jobs data, which triggered a Treasuries selloff into overdrive. The two-year Treasury yield, which typically moves in step with interest rate expectations, was up 5.1 basis points at 5.002% after rising to 5.120%, the highest since June 2007. However, Barclays said most emerging market assets had historically reacted positively to U.S. economic resilience and the trajectories of central banks in those countries were unlikely be derailed by the Fed. In Asia, the Indonesian rupiah depreciated 0.6% to hit its lowest level since March 27 as investors exited on risks related to higher U.S. interest rates. Bank Indonesia in a statement said it was ready to intervene in the foreign exchange market to defend the rupiah when needed. The Thai baht, the Taiwanese dollar and Malaysian ringgit were down 0.2%, while the Philippine peso firmed 0.2%. Market participants were bracing for a slew of data later on Friday, including Singapore and Malaysia's foreign exchange reserves and Taiwan's trade data. "Trade figures for June in Taiwan could show rates of decline moderating in year-on-year terms, though they are likely to remain in a double-digit descent," ING Markets said in a note. The South Korean won also skidded 0.6%. The country's central bank is scheduled to announce an interest rate decision next week. Equities in the region were largely in the red, with shares in the Philippines losing 1.1% to hit lowest in two weeks, while those in Singapore, Malaysia, and Indonesia fell around 0.3%. HIGHLIGHTS: ** Indonesia's benchmark 10-year yield jumps 4.4 basis points to 6.254% ** Indonesia's FX reserves drop to $137.5 bln at June-end ** India's 10-year benchmark yield jumps to 7.165%, highest since April 21 ** U.S. 10-year Treasury yield at 4.0396%, highest since early March Asia stock indexes and currencies at 0315 GMT COUNTRY FX RIC FX FX INDE STOCKS STOCKS DAILY % YTD % X DAILY YTD % % Japan +0.10 -8.89 <.N2 -0.47 25.00 25> ChinaEC> India 0.00 +0.25 <.NS 0.00 7.69 EI> Indonesi -0.63 +2.84 <.JK -0.19 -1.55 a SE> Malaysia -0.17 -5.74 <.KL -0.27 -7.57 SE> Philippi +0.21 +0.22 <.PS -0.85 -2.24 nes I> S.Korea 11> Singapor +0.04 -0.98 <.ST -0.39 -3.48 e I> Taiwan -0.22 -1.86 <.TW -0.52 17.95 II> Thailand -0.17 -1.83 <.SE -0.52 -11.14 TI> (Reporting by Nausheen Thusoo in Bengaluru; Editing by Jamie Freed)
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Stocks mentioned in the article
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5d. change
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Capi.
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2,772 PTS | +1.70% | +0.64% | - | ||
1,382 KRW | 0.00% | +1.18% | - | ||
1,014 KRW | +0.00% | +1.95% | - | ||
919.2 KRW | +0.94% | +1.92% | - | ||
736.3 USD | -1.26% | -4.00% | - | ||
220 GBX | +0.66% | +1.78% | 41.49B | ||
16.56 KRW | +0.48% | +1.00% | - | ||
7.241 CNY | 0.00% | 0.00% | - | ||
1.274 USD | +0.10% | +0.38% | - | ||
1.084 USD | +0.13% | +0.31% | - | ||
0.7333 USD | +0.36% | +0.71% | - | ||
0.6652 USD | +0.34% | +0.79% | - | ||
0.6142 USD | +0.44% | +0.75% | - | ||
0.012 USD | -0.14% | -.--% | - | ||
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