* Emerging markets underperform
* Weak growth reading hits South Korea's currency
* European valuations not excessive -fund manager
* Greece vote keeps bailout deal hopes on track (Adds U.S. futures)
By Lionel Laurent
LONDON, July 23 (Reuters) - Financial markets were relatively muted on Thursday, with a positive raft of corporate results in Europe and progress in Greece offset by mixed economic data and worries about growth in emerging markets.
European equities had erased morning gains and were trading 0.3 percent lower by 1200 GMT, echoing a mixed performance on Asian markets after South Korea's economy recorded its weakest expansion in six years in the second quarter. Energy and mining stocks were the worst performers as commodities prices steadied.
Sterling was hit by British retail sales data showing an unexpected dip last month as consumers bought fewer household goods, pushing the annual rate of spending growth for the quarter to its lowest in more than two years. ID:nL5N10328L
Emerging markets took a hit, with currencies extending falls against the dollar and equities down 0.4 percent. The Korean won hit new three-year lows after its weak economic reading, while the Indonesian rupiah and the Thai baht touched new 17-year and six-year lows respectively IDR= THB= .
Worries over demand for commodities from markets such as China and the impact of an expected U.S. interest rate hike on emerging market capital flows have taken the shine off global markets even as fears over Greece recede.
"European stock markets are getting some pressure from the commodities side," said Christian Stocker, equity strategist at UniCredit in Munich.
"Increasing concerns about China and overcapacities in the mining sector could continue to put pressure on mining stocks."
U.S. equity futures SPc1 were broadly flat ahead of another busy day for corporate earnings, with General Motors GM.N and McDonald's MCD.N reporting earnings. McDonald's reported second-quarter earnings per share of $1.26, better than expectations for $1.23, though global comparable sales fell.
Europe also saw a busy earnings day, with Swiss bank Credit Suisse CSGN.VX soaring more than 7 percent on better-than-expected results. On the flipside, Aberdeen Asset Management ADN.L sank more than 7 percent after suffering a ninth consecutive quarter of fund outflows.
Paris-based fund manager Vincent Guenzi, at Cholet Dupont, said European valuations were "not excessive" but that it was too early to tell whether this earnings season would see analysts upgrade their forecasts.
There was also more reason for optimism on Greece, where Prime Minister Alexis Tsipras contained a rebellion in his left-wing Syriza party to win parliamentary approval for reforms required to start talks on a financial rescue deal. ID:nL5N1020XQ
Peripheral bond yields fell and the German bund held steady, while the euro rose to hit $1.10 for the first time in more than a week. The dollar against a basket of six major currencies .DXY fell.
Commodities markets were steady, with U.S. oil CLc1 up 22 cents to $49.42 per barrel and Brent crude LCOc1 broadly flat at $56.20. Rising U.S. stockpiles and a strong dollar have been a drag on oil prices.
In metals, gold edged up from a five-year low, though bearish investors were still hovering. London copper prices meanwhile rose as short-sellers rushed to cover their positions in a volatile session after a bearish call from Goldman Sachs had sent the metal to its lowest in a fortnight.