*

Most Asian currencies largely unchanged

*

Taiwan stocks hit record high for 7th day

*

Rupiah gains on resuming trading after two days of holiday

*

Bank Indonesia to keep rates unchanged - Reuters poll

By Rajasik Mukherjee

June 19 (Reuters) - Equities in Taiwan and South Korea

advanced on Wednesday as some of the world's top chipmaking

firms surged on bullish prospects for AI technology, while

shares in Indonesia snapped a losing streak on resuming trade

after a two-day holiday.

Taiwan's benchmark index rose as much as 2.3% and

hit a record high for the seventh straight session, boosted by

chipmakers like Taiwan Semiconductor Manufacturing co ( TSM ),

after its major client Nvidia ( NVDA ) soared to a new peak.

In South Korea, shares gained 1.3% to touch an over

two-year high, with chipmakers Samsung Electronics ( SSNLF )

and peer SK Hynix ( HXSCF ), another Nvidia ( NVDA ) supplier, gaining

1.4% and 2%, respectively.

Elsewhere in the region, shares in Indonesia gained

up to 0.8% on resuming trade after two days of holiday. The

currency, one of the worst performers so far this year,

appreciated 0.2% to recover off its four-year lows.

Bank Indonesia (BI) is expected to keep its interest rates

unchanged at its monetary policy meeting on Thursday, according

to a Reuters poll, with economists pushing their first rate cut

expectation to the first quarter of next year.

However, with the rupiah depreciating and uncertainty

regarding the country's ongoing political transition and fiscal

outlook, some analysts are not ruling out a rate hike by the

central bank.

"The rate hike is necessary to deliver BI's (Bank Indonesia)

promise on using monetary policy to contain volatility on IDR

(Indonesian rupiah)," said Fakhrul Fulvian, economist at

Trimegah Securities.

Analysts at MUFG said in a client note "while we expect the

depreciating trend in the Indonesian rupiah will persist, the

recent sharp pace of decline has surprised us", adding that a

rate hike can be expected if the rupiah weakens further.

Among other currencies, the Thai baht slipped 0.2%,

while the Singapore dollar, the Philippine peso,

the Malaysian ringgit, and the Taiwan dollar

were largely unchanged.

Globally, softer-than-expected retail sales data in the

United States reignited hopes of an imminent rate cut by the

Federal Reserve, pushing the dollar lower. It recovered

slightly early on Wednesday.

"Rate path forward and the timing of the first cut remain

uncertain and officials seem more comfortable to wait a while

more before making the first move," analysts at Maybank wrote in

a client note.

HIGHLIGHTS:

** Indonesian 10-year benchmark yields rise 3.4 basis points

to 7.243%

** South Korea FX authorities aimed to cap dollar-won at

1,385 - sources

** Japan's Nikkei edges up as tech shares get Nvidia ( NVDA ) bump

Asia stock indexes and

currencies at 0403 GMT

COUNTRY FX RIC FX FX INDE STOCK STOCK

DAILY YTD % X S S YTD

% DAILY %

%

Japan +0.00 -10.6 China EC>

India +0.05 -0.19 Indones +0.24 -5.87 Malaysi +0.13 -2.46 Philipp -0.37 -5.61 S.Korea 11>

Singapo +0.02 -2.33 Taiwan +0.02 -5.11 Thailan -0.19 -6.96