* Malaysia stocks drop to over seven-month low * Thai stocks on track for eighth straight day in the red * Graphic: World FX rates tmsnrt.rs/2RBWI5E * Asian stock markets: tmsnrt.rs/2zpUAr4 By Soumyajit Saha June 28 (Reuters) - Equities in Malaysia and Thailand led losses among emerging Asian stock markets on Monday, as the two Southeast Asian countries ramped up restrictions to control rising domestic coronavirus infections. Malaysian stocks dropped as much as 1.2% to their lowest since Nov. 10, 2020, after Prime Minister Muhyiddin Yassin said on Sunday the national lockdown that was set to end on Monday would be extended till daily cases fell below 4,000. Thai stocks were on track for their eighth consecutive session of losses, with the benchmark falling as much as 1.1% to its lowest in over a month. The baht lost 0.3%. The government on Sunday announced new restrictions centred around the capital Bangkok in a bid to tackle the country"s worst coronavirus outbreak. Further souring sentiment, the Bank of Thailand"s deputy governor said the economy was expected to return to pre-pandemic levels only in the first quarter of 2023, as the tourism sector has been slow to recover. Spiking infections also took a toll on Indonesian stocks which fell for the third time in four sessions after the country reported its biggest daily increase, while the rupiah shed 0.2%. "Markets in Asia are yet to see the kind of opening up that Europe and the United States are experiencing... we can continue to expect volatility in Asian markets in the short term due to fluctuating virus cases," Mitul Kotecha, chief EM Asia and Europe strategist at TD Securities, said. Elsewhere, Taiwan stocks extended their rally to a fifth consecutive session, while Singapore stocks were on track for a fourth straight day of gains. Most regional currencies were pressured as the U.S. dollar held firm after slightly softer-than-expected U.S. inflation continued to keep investors on edge about potential monetary policy tightening from the Federal Reserve. HIGHLIGHTS ** The Philippines launches benchmark-sized U.S. dollar bond offering to raise more funds for budgetary support ** Indonesian 10-year benchmark yields are up 6.4 basis points at 6.591% ** Singapore"s 10-year benchmark yield is up 3.1 basis points at 1.591% Asia stock indexes and currencies at 0317 GMT COUNTRY FX RIC FX FX INDEX STOCKS STOCKS DAILY YTD % DAILY YTD % % % Japan +0.07 -6.73 -0.28 5.61 China -0.13 +1.01 -0.08 3.79 India +0.00 -1.53 0.00 13.44 Indonesia -0.21 -2.84 -0.66 0.06 Malaysia +0.12 -3.11 -1.06 -5.16 Philippines -0.10 -1.19 -0.46 -3.10 S.Korea -0.27 -3.94 -0.09 14.84 Singapore -0.12 -1.70 0.35 10.16 Taiwan +0.11 +2.18 0.45 19.34 Thailand -0.28 -6.08 -0.64 8.50 (Reporting by Soumyajit Saha in Bengaluru; Editing by Jacqueline Wong) Our Standards: The Thomson Reuters Trust Principles.