EMERGING MARKETS-Asian currencies weaken as US tariff ruling boosts dollar

• Malaysian ringgit, Thai baht down 0.3% each
• S.Korean shares at near 10-month high after central bank cuts rates
• U.S. court blocks April 2 tariffs; White House appeals

By Himanshi Akhand

May 29 (Reuters) - Asian currencies weakened on Thursday after a U.S. trade court's decision to block the implementation of President Donald Trump's "Liberation Day" tariffs lifted the dollar, while some stock markets pared back early gains.

The Philippine peso PHP= dropped as much as 0.7% to its lowest point in more than a week, while the Malaysian ringgit MYR= and the Thai baht THB=TH fell 0.3% each.

The Court of International Trade ruled that Trump overstepped his authority by imposing across-the-board duties on imports from nations that sell more to the United States than they buy.

The White House quickly appealed the decision and questioned the authority of the court.

"The court ruling helps restore some credibility to the system, which has been undermined by the unpredictability of Trump's tariffs. That aided the dollar's broad rebound," said Christopher Wong, currency strategist at OCBC.

"We should expect to see more two-way volatility driven by headlines and tariff news," he added.

While emerging Asian currencies had gained earlier this month on the back of broad dollar weakness — fuelled by concerns over Trump's unpredictable trade policies and U.S. fiscal stability — sentiment toward U.S. assets has improved this week.

The dollar index =USD, which measures the currency against six rivals, was back above 100 for the first time in a week on Thursday. FRX/

Even with the declines against a stronger dollar in the past few sessions, the Taiwan dollar TWD=TP is up almost 6.5% in May, on track to log its best month on record.

The ringgit and the baht are both set for a nearly 2% monthly gain.

The MSCI's gauge of Asian emerging market equities .MIMS00000PUS was up 0.4%, but some regional stock markets pared back early gains.

Equities in Bangkok .SETI were trading 0.5% higher after having risen as much as 1.5% earlier in the session. Taipei stocks .TWII, which rose up to 1.1% during the session, closed marginally down.

In South Korea, shares .KS11 rose 1.9% to their highest levels in nearly 10 months and the won KRW=KFTC, which has gained about 3.5% this month, was flat at 1,376 per dollar.

Bank of Korea cut interest rates by 25 basis points to bolster economic recovery, which almost halved this year's economic outlook to 0.8%.

The decision comes less than a week before South Korea votes for a new president, ending half a year of political limbo after ousted President Yoon Suk Yeol's failed martial law bid in December.

Markets in Indonesia were closed for a holiday.

HIGHLIGHTS:

** Asian bonds draw largest foreign inflow in eight months in April

** Bullish bets surge on Asian currencies as US-China thaw, trade deals rattle dollar

** Philippine president instructs heads of firms owned or controlled by government to resign