EM ASIA FX-Asia FX make weak gains, ringgit falls to pre-peg levels

* Malaysia c.bank spotted intervening, but sporadically

* Malaysia FX reserves data on Friday closely eyed

* Baht, won gain on short-covering

(Adds text, updates prices)

By Jongwoo Cheon

SINGAPORE, Aug 3 (Reuters) - Most emerging Asian currencies

rose on Monday after weak U.S. wage growth clouded views on when

U.S. interest rates were likely to rise, but the outlook for

them was gloomy given the growing concerns over China's slowing

economy.

The Malaysian ringgit's woes worsened due to the

political pressures on Prime Minister Najib Razak as a result of

the scandal over indebted state-fund 1MDB. There were some

doubts over how heavily Bank Negara Malaysia would intervene to

prop up the currency if foreign reserves dwindled too fast.

On Monday, with the ringgit hit a level unseen since the day

before it was pegged at 3.80 per dollar in early September 1998,

as the then government of prime minister Mahathir Mohamad put a

floor under the currency to stop it falling further during the

Thailand's baht and South Korea's won

led gains among regional currencies as investors cut dollar

holdings after data on Friday showed U.S. labour costs in the

second quarter reported their smallest growth in 33 years.

The regional currencies recovery rebound lost momentum after

a private survey showed China's factory activity shrank more

than initially estimated in July, dampening hopes that the

world's second-largest economy was stabilising.

Also, despite the weak U.S. wage growth, expectations for a

rise in U.S. rates later this year remained intact, leaving

emerging Asian currencies vulnerable, traders and analysts said.

"Given the strong NFP figures over the last many months and

the strong preliminary Q2 GDP, we still expect first hike in

September," said Amy Yuan Zhuang, a senior analyst at Nordea in

Singapore.

Investors are awaiting U.S. nonfarm payrolls data due on

Friday. U.S. employers were expected to have added 222,000 jobs

last month, compared to 223,000 increases in the previous month,

according to Reuters' survey of economists. June's

payroll growth ran well above the average for the first five

months.

U.S. economy grew at a 2.3 percent annual rate, faster than

a 0.6 percent expansion in the previous three months, on solid

consumer spending.

"Given the strong NFP figures over the last many months and

the strong preliminary Q2 GDP, we still expect first hike in

September," said Amy Yuan Zhuang, a senior analyst at Nordea in

Singapore.

"Yellen made it very clear that a hike this year is almost

certain, unless something really surprises on the downside."

Last month, Fed Chair Janet Yellen said the U.S. central

bank will likely hike interest rates if the world's top economy

grows as expected.

RINGGIT

The ringgit slid 0.7 percent to 3.8500 per dollar. That was

its weakest since Sept. 2, 1998, when the currency traded

between 3.79 and 4.00 to the dollar, on the day before it was

pegged. The ringgit was taken off the peg in 2005, but its

return to those levels has given Malaysians a sharp reminder of

hard times.

Trading was thin on Monday, as foreign banks sold the

ringgit. Foreign reserves data due on Friday will be closely

watched after losing $5 billion in the first half of June.

"The reserves data may gain increasing importance to the

market as a signal of nervousness from policy makers," said

Sacha Tihanyi, senior currency strategist for Scotiabank in a

research note.

The central bank was on Monday spotted intervening to

support the worst-performing Asian currency so far this year,

though it did not appear to be defending any specific levels,

traders said.

Some government bond prices fell with the five-year

government bond yield rising to 3.619 percent, its

highest since July 9.

BAHT

The baht gained as traders covered short positions ahead of

Thailand's central bank's monetary policy meeting on Wednesday.

The currency has barely moved since data showed July

consumer prices fell for a seventh straight month.

Most economist expect the Bank of Thailand to leave its

benchmark interest rate unchanged for now.

WON

The won advanced as weak U.S. wage data prompted stop-loss

dollar selling.

Offshore funds bought the South Korean currency to cover

short positions, seeing its recent weakness as excessive,

traders said.

The currency lost 4.7 percent against the dollar in July,

the largest monthly loss since September 2011, Thomson Reuters

data showed.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0530 GMT

Currency Latest bid Previous day Pct Move

Japan yen 124.04 123.89 -0.12

Sing dlr 1.3749 1.3723 -0.19

Taiwan dlr 31.591 31.682 +0.29

Korean won 1166.20 1170.00 +0.33

Baht 35.01 35.18 +0.49

Peso 45.66 45.74 +0.19

Rupiah 13505.00 13525.00 +0.15

Rupee 63.97 64.13 +0.26

Ringgit 3.8460 3.8245 -0.56

Yuan 6.2097 6.2097 +0.00

Change so far in 2015

Currency Latest bid End prev year Pct Move

Japan yen 124.04 119.66 -3.54

Sing dlr 1.3749 1.3260 -3.56

Taiwan dlr 31.591 31.718 +0.40

Korean won 1166.20 1099.30 -5.74

Baht 35.01 32.90 -6.03

Peso 45.66 44.72 -2.05

Rupiah 13505.00 12380.00 -8.33

Rupee 63.97 63.03 -1.46

Ringgit 3.8460 3.4965 -9.09

Yuan 6.2097 6.2040 -0.09

(Editing by Simon Cameron-Moore)