* Thai baht hits highest since January * Focus on emerging Asia central bank decisions * Most Asian shares rise By Archishma Iyer and Rajashik Mukherjee, August 19 (Reuters) – Most Asian currencies and shares held firm on Monday. Markets were focused on Thailand's election of a new prime minister and better-than-expected economic growth. The Thai baht rose 0.5 percent to its highest since early January and stocks rose nearly 1.2 percent. Thailand's tourism-dependent economy grew 2.3 percent in the second quarter, according to data released on the same day, beating the 2.1 percent forecast by analysts compiled by Reuters. Pathuntar Shinawatra was elected Thailand's youngest prime minister on Friday, easing political uncertainty that has plagued Southeast Asia's second-largest economy since the ouster of former prime minister Surendra Thavisin over ethics violations. But Thai politics remain a risk to the economy, some analysts warn. “We think the new prime minister has eased some concerns about political uncertainty, which could be quite positive for Thai assets in the short term. But we think it's more important to focus on how quickly the new cabinet is formed,” said Poon Panichpibul, market strategist at Krungthai Bank. “Thailand has clearly yet to find a way to bridge its deep political divide. Without that, uncertainty will persist and economic populism will fester, adversely affecting investor confidence,” analysts at Capital Economics wrote. Meanwhile, the Malaysian currency rose 1.3 percent to trade at 4.370 won per dollar, hitting its highest in a year and a half. Meanwhile, the South Korean won surged 1.4 percent to its highest since late March. The ringgit has been a standout performer among emerging Asian currencies, and Malaysian stocks have been among the best performers as investors look to Malaysia as an alternative investment destination. Other currencies such as the Singapore dollar, Indonesian rupiah and Taiwan dollar rose 0.3% to 0.8%. On the event front, investors are keeping an eye on the central bank decisions of Thailand, Malaysia and South Korea, with analysts expecting all three to keep interest rates unchanged, in contrast to the Philippine central bank's decision last week to cut its key policy rate. Globally, investors' main focus will be the Jackson Hole Symposium scheduled for later this week, where Fed Chairman Jerome Powell is expected to speak on concerns about the economy and the Fed's interest rate trajectory. In Asian stocks, the Philippines' stock index rose as much as 1.4%, holding near its early-April high, while Malaysia, Indonesia and Taiwan's stock indexes rose 0.1% to 1.1%. Top stories: ** Indonesia's 10-year government bond yield falls to 6.682% ** Philippines and China trade accusations after ship collision in South China Sea ** Vietnamese leader Tu Lam arrives in China to meet Xi Jinping Asian stocks & currencies as of 0415 GMT Country FX RIC FX FX YTD Index Equities Equities Daily % % Daily % YTD % Japan +0.69 -3.76 -1.08 12.47 China +0.19 -0.68 0.53 -2.70 India +0.09 -0.78 0.20 13.15 Indonesia +0.74 -1.12 0.14 2.33 Malaysia +1.21 +4.91 1.11 12.88 Philippines +0.69 -2.30 0.94 7.16 South Korea +1.36 -3.39 -0.30 1.28 Singapore +0.30 +0.59 0.01 3.49 Taiwan +0.78 -4.07 0.34 25.07 Thailand +0.41 -0.83 1.18 -6.89 (Reporting by Aashma Iyer and Rajasic Mukherjee in Bengaluru; Editing by Shri Navaratnam)
