Asian stocks retreat from recent peaks as US tariff deadline looms

• MSCI EM Asia index slips from 3-1/2-year high
• Stocks in S.Korea, Taiwan decline from recent peaks
• Singapore stocks slip from record highs
• Currencies edged lower; ringgit hits an 8-session low
• U.S. July 9 tariff deadline in focus

July 4 (Reuters) - Stocks in emerging Asian economies pulled back on Friday from recent peaks, as market participants took a cautious stance ahead of U.S. President Donald Trump's July 9 tariff deadline, while regional currencies dipped against a steady U.S. dollar.

An MSCI gauge of equities in emerging Asia .MIMS00000PUS slid nearly 1% from a 3-1/2-year high notched in the previous session. Stocks in South Korea .KS11 and Taiwan .TWII, which together make up over a third of the regional index, were the biggest drags on performance.

Investors initially cheered trade discussions between the United States and Vietnam, hoping they could pave the way for breakthroughs in other emerging economies. But limited details and tariffs remaining above pre-April 2 levels dampened the optimism.

"The trade deal with Vietnam announced this week was more hawkish than we expected, posing a risk that other countries could face higher tariff rates," Nomura analysts said in a note.

South Korea's KOSPI .KS11 fell 1.5% after scaling a near four-year high in the previous session, marking its worst intraday drop since April 9. Taiwan's benchmark index .TWII slipped from a near four-month high.

Stocks in the Philippines .PSI fell 0.7%, while those in Singapore .STI eased off from a record-closing high. Thai stocks .SETI also came off a three-week peak, snapping a four-session rally.

Vietnam's benchmark index .VNI slipped from its April 2022 peak, while the dong VND= weakened to a record low of 26,230 against the U.S. dollar.

Currencies in emerging Asia also nudged lower - Malaysia's ringgit MYR= slipped to an eight-session low, while the Indonesian rupiah IDR= and the Philippine peso PHP= shed around 0.2% each.

An index tracking global emerging market currencies .MIEM00000CUS retreated from a record high.

"Asian currencies may face renewed volatility as markets turn their attention to tariff-related developments," said Lloyd Chan, senior currency analyst at MUFG.

Citi analysts, referring to the U.S.-Vietnam trade development, said that while the "de-dollarisation" narrative remained well-entrenched and had more steam to run further, "the roadblocks for stronger EM Asia FX had just increased".

They predicted similar deals could impact currencies such as the Chinese yuan CNY=CFXS, ringgit, Thai baht THB=TH, South Korea's won KRW=KFTC, and the Singapore dollar SGD=.

On the day, the Singaporean dollar SGD= snapped a three-day losing streak to appreciate marginally, and remained a few points shy of its October 2014 high. The Thai baht THB=TH and the Indian rupee INR=IN weakened marginally.

The U.S. dollar index =USD, which measures the greenback against a basket of major currencies, retraced some of its gains from Thursday. Stronger-than-expected U.S. jobs data has pushed out the timing for potential rate cuts by the Federal Reserve.

HIGHLIGHTS:

** Trump's tax bill narrowly clears final hurdle in the U.S. Congress

** Indonesia will sign $34 billion pact with U.S. partners

** Indonesia c.bank governor says bank will cut rates again

** For retailers, US-Vietnam trade deal leaves questions