* Indonesian inflation eases in June
* S.Korean won declines 0.4% during longer trading hours
* Investors eye raft of inflation prints due this week

By Roshan Thomas
       July 1 (Reuters) - Most Asian stocks rose on Monday as
traders assessed the U.S. rates outlook after data showed
inflation in the world's largest economy subsided in May, while
currencies were trading subdued with the South Korean won
declining the most.
    Stocks in Malaysia gained 0.3%, Taiwan and
Philippines each edged 0.1% higher, while Thailand
 equities dipped 0.1%.
    The Malaysian ringgit, Singaporean dollar and
Thai baht were largely flat. 
    Indonesian equities advanced 0.8% in their fourth
consecutive session of gains, while the rupiah held its
ground at 16,360.
    Annual inflation in Indonesia eased to 2.51% in June, its
lowest level in nine months, according to data, but came within
the central bank's target range of 1.5% to 3.5%.
    Data on Friday showed that in the 12 months through May,
U.S. PCE price index increased 2.6% after advancing 2.7% in
April, while consumer spending rose moderately, drawing the
Federal Reserve closer to start cutting interest rates this
year.
    Markets are expecting at least two rate cuts from the U.S.
Fed this year with a 63% probability of a cut in September,
according to the CME FedWatch tool.
        Back in Asia, the South Korean won weakened
0.4% during longer trading hours on the dollar-won onshore
market. Data showed exports in South Korea grew for a ninth
straight month in June, buoyed by chip demand, but at a slower
pace than analysts expected.
    Manufacturing activity in China fell for a second month in
June, while services activity slipped to a five-month low, an
official survey showed on Sunday, keeping alive the propsect for
further stimulus.
    "These two consecutive months of contraction in the
manufacturing purchasing managers' index (PMI) confirm our view
that the sluggish economic momentum observed in May has largely
continued in June, and the ongoing recovery remains somewhat
fragile," analysts at Nomura said in a client note. 
    The yuan was largely unchanged.
    Lacklustre performance in the Japanese yen, which
skidded to its weakest level since late 1986 on Friday, has
raised concerns about exports in some of its biggest trade
rivals such as China and Korea and added to the pressure on
Asian currencies. 
    Investors look forward to inflation prints from Thailand,
the Philippines, Taiwan, and South Korea this week, which will
help highlight the current pressures faced by Asian economies.  
  
    
        
    HIGHLIGHTS:    
    ** Indonesian 10-year benchmark yields fall to 0.2%
    ** Japan downgrades Q1 GDP on construction data corrections
    ** Asia's factory activity expands in June on solid global
demand
    
    
  Asia stock indexes and                                 
 currencies at 0505 GMT                             
 COUNTRY  FX RIC        FX     FX    INDEX  STOCKS  STOCK
                     DAILY  YTD %            DAILY  S YTD
                         %                       %      %
 Japan               -0.17  -12.4            0.02   18.31
                                4                     
 China                                            
 India               -0.09  -0.30             0.23  10.74
 Indones             +0.06  -5.90             0.79  -2.11
 ia                                                 
 Malaysi             +0.04  -2.61             0.31   9.64
 a                                                  
 Philipp             -0.34  -5.61             0.06  -0.53
 ines                                               
 S.Korea                                          
 Singapo             +0.00  -2.68             0.15   3.01
 re                                                 
 Taiwan              -0.19  -5.46             0.09  28.57
 Thailan             -0.03  -6.98            -0.08  -8.19
 d                                                  
 
    
 (Reporting by Roshan Thomas in Bengaluru; Editing by Sherry
Jacob-Phillips)