Asian currencies, stocks weaken on doubts over when Fed will slow rate rises

South Korea's won USDKRW and Malaysia's ringgit USDMYR depreciated 1.3% and 0.3%, respectively. Indonesia's rupiah USDIDR fell 0.6%.

The U.S. dollar index DXY, which measures the currency against six major peers, changed hands at 105.11 in early Asian trading, easing 0.1% after Monday's 0.7% rally, its biggest since Nov. 21.

"The major factor for the market would be growing concerns over Fed's rate hikes which has led to some profits-taking on risky assets and rally in the U.S. dollar," said Poon Panichpibool, Markets Strategist at Krung Thai Bank.

Panichpibool said Asian currencies could outperform the dollar next year, as the greenback peaks.

Thailand's baht USDTHB dropped 0.7%, while equities in Bangkok SET shed 0.1%.

"The reason that the Thai baht has weakened today could come from some hedging position which may have turn(ed) after the U.S. data was better than expected yesterday," said Kittika Boonsrang, capital markets business research specialist at Kasikornbank.

The peso USDPHP depreciated 0.1%, while stocks in Manila PPSEI gained 1.5%.

Bucking the broader trend, Singapore's dollar USDSGD appreciated 0.2% to be the only bright spot among Asian emerging currencies.

Stocks in Asia also remained on the backfoot, with Indonesia's benchmark index COMPOSITE retreating 1.1% and leading losses in the region.

HIGHLIGHTS:

** China may announce 10 new COVID easing steps on Weds -sources

** New PM Anwar says Malaysia to review plans for 5G network

** Sanurhasta Mitra MMINA and Citra Tubindo CCTBN lead laggards on Indonesia's benchmark index COMPOSITE

The following table shows rates for Asian currencies against the dollar at 0339 GMT.