* 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>           
 China                               EC>           
 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)