* Thailand baht top loser in the region
* Economic growth in Philippine slows for third straight
quarter
* Spotlight on key U.S inflation data

By Navya Mittal
       Aug 10 (Reuters) - Asian currencies and equities lost
ground on Thursday as investors err on the side of caution ahead
of the crucial U.S. inflation report.
    The Thai baht led losses among currencies in the
region, losing 0.5% to give up the modest gains made on
Wednesday. The currency has been sliding since July 27 after a
string of disappointing economic data and the finance ministry
has lowered its  forecast for economic growth in 2023 due to
tepid global demand for Thailand's exports.
    Equities in the region traded cautiously in line with the
weakness in global markets after data from China showed the
world's second largest economy had slipped into deflation.
    Investors' focus is now locked on U.S. inflation data due to
be released later in the global day.
    "We saw a sell-off in U.S. equities so risk sentiment is
weak, which filtered through into the Asian markets, " said
Khoon Goh, head of Asia research at ANZ. 
    The Philippines' economy grew at the slowest pace in nearly
12 years in the second quarter, and the central bank has hinted
at a 'prudent pause' in monetary tightening. 
    "It was an overall disappointing report with the slowdown
driven by all major sectors of the economy," said Nicholas Mapa,
economist at ING.
    Shares in Manila lost 1%, while its local unit
gained slightly.  
    Shares in Taiwan led losses in the region, falling
as much as 1.6% to its lowest in a month, with equities in
Thailand and South Korea slipping over 0.3%
each. 
    
    HIGHLIGHTS: 
    ** Thai alliance expands in new bid to form government amid
stalemate 
    ** Indonesian 10-year benchmark yields are up 1 basis points
at 6.345% 

  Asia stock indexes and                            
 currencies at 0339 GMT                        
 COUNTRY  FX RIC        FX    FX  INDE  STOCK  STOCK
                     DAILY   YTD     X      S  S YTD
                         %     %        DAILY      %
                                            %  
 Japan               -0.10  -8.8  <.N2  0.42   25.75
                               6  25>          
 China                       2  EC>          
 India               +0.02  -0.1  <.NS   0.00   8.44
                               0  EI>          
 Indones             -0.07  +2.3  <.JK   0.27   0.63
 ia                            9  SE>          
 Malaysi             -0.07  -3.7  <.KL  -0.42  -2.65
 a                             4  SE>          
 Philipp             +0.07  -1.0  <.PS  -1.03  -1.57
 ines                          8  I>           
 S.Korea                     9  11>          
 Singapo             -0.04  -0.5  <.ST  -0.23   1.69
 re                            3  I>           
 Taiwan              -0.06  -3.3  <.TW  -1.34  17.73
                               4  II>          
 Thailan             -0.48  -1.4  <.SE  -0.37  -8.75
 d                             7  TI>          
 
    
 (Reporting by Navya Mittal in Bengaluru; Editing by Simon
Cameron-Moore)