EMERGING MARKETS-Thai stocks gain on reports rate-cut backer to get top cenbank role

By Rishav Chatterjee

July 15 (Reuters) - Bangkok equities surged on Tuesday on reports that Thailand will name a proponent of aggressive monetary policy easing as its next central bank governor, while markets in Singapore and Indonesia held onto their recent rallies.

The benchmark index in Thailand .SETI gained up to 0.8%, hitting its highest since May 30, led by Airports of Thailand's AOT.BK 5.2% rise. The Thai baht THB=TH was trading slightly higher.

Next week, Thailand's finance minister will propose to the cabinet state-owned bank head Vitai Ratanakorn as his pick for the next central bank governor, according to two government sources and local media.

The appointment may reignite concerns over the Bank of Thailand's independence, as the nominee holds a dovish policy stance, contrasting with current governor Sethaput Suthiwartnarueput, who has pushed back against calls for rate cuts and a higher inflation target.

"There could be some positive sentiment regarding the result of the process of selecting the new Bank of Thailand governor," said Poon Panichpibool, a markets strategist at Krung Thai Bank, noting that the candidate to be proposed was "quite dovish" and "is well co-ordinated with the government's policy".

In China, the Shanghai Composite index .SSEC slipped to a one-week low and the onshore yuan CNY=CFXS traded flat, after data showed China's economy grew faster than expected in the second quarter, though the pace slowed from the previous three months.

While China's economy has so far avoided a sharp downturn, investors are bracing for a softer second half as U.S. tariffs begin to bite into exports.

Jakarta .JKSE reversed its earlier dip and was on track for a seventh straight session of gains. The rupiah IDR= fell 0.2%.

Indonesia's central bankers will meet on Wednesday to decide on an interest rate call. The market seems divided over what could Bank Indonesia decide, with 15 of 29 economists eyeing a rate cut, according to a Reuters Poll.

"We are expecting Bank Indonesia to cut by 25 basis points as we do not believe the currency would hold the central bank back this time," said Maybank analysts.

Investors in Singapore continued to demonstrate their appetite for high-return defensive and property stocks, leading equities in the city-state .STI to a tenth-straight record high. The Singapore dollar SGD= was unchanged.

Stocks in Taiwan .TWII added 1% after having closed 0.6% lower on Monday. The respective Philippine .PSI and Malaysian .KLSE benchmark indexes dragged 1% and 0.5%.

Currency traders in emerging Asia found themselves assessing the weak data from China and recent tariff developments, while they await U.S. consumer prices data later in the day.

The Philippine peso PHP= and Taiwan dollar TWD=TP fell while the South Korean won KRW=KFTC and Indian rupee INR=IN were trading higher.

HIGHLIGHTS

Indonesia's 10-year benchmark yield ID10YT=RR ticks higher to 6.608%

Thai central bank governor nomination to be proposed to cabinet next week

Malaysia says trade permit required for AI chips of U.S. origin