* S.Korea, Taiwan stocks clinch record closing levels

* MSCI EM Asia set for best month since June 1999

* Chip rally continues on AI optimism

* Ringgit, Singapore dollar firm; Rupiah weakens

* Philippine Peso near four-week low

(Updates for afternoon trade)

By Nichiket Sunil

April 27 (Reuters) - Chip stocks led Taiwan and South

Korean equities to record high closing levels on Monday with

strong earnings in the United States powering artificial

intelligence bets, as investors briefly looked past stalled

U.S.-Iran peace talks.

Equity benchmarks in the two East Asian economies were set

for their best month in decades, following sharp sell-offs in

March, as chip giants see AI-driven demand boosting earnings,

despite concerns around inflation and the Strait of Hormuz

closure impacting the global economy.

Intel ( INTC ) forecast second-quarter revenue above Wall

Street expectations last week, driving confidence in South Korea

and Taiwan's recent rallies.

Shares in Taipei rose 1.8%to their highest ever

close. The benchmark, which houses one of Asia's two listed

companies with a trillion-dollar valuation, TSMC, has

advanced 24.9% so far in April, on track for its best month

since late 2001.

South Korea's KOSPI also ended at a record closing

high with a 2.2% gain. Chipmaker SK Hynix surged as

much as 7.8% to a record during the session, while rival Samsung

Electronics ( SSNLF ) closed with a 2.3% gain.

The KOSPI index has soared more than 30% in April and is on

track for its best month since January 1998.

The two tech-heavy equity benchmarks have sharply

outperformed emerging-market peers, driving the MSCI EM Asia

gauge to a record-high earlier in the session.

The MSCI EM Asia gauge is set to end April 19.7% higher -

its best month since June 1999.

"The good news for Asia is that the AI build-out globally

remains very strong and if anything, seems to be accelerating,

with Intel ( INTC ) reporting better-than-expected results," MUFG analyst

Michael Wan said.

Meanwhile, an Axios report said Iran wants to make a deal to

open the Strait of Hormuz first and postpone nuclear talks,

supporting risk appetite.

Stocks in Thailand gained as much as 1.9%, set for

their best trading session since April 1.

The country's central bank will hold its policy meeting

later this week and is expected to keep interest rates unchanged

after a shock 25-basis-point cut at its last meeting in

February.

Malaysia stocks rose as much as 0.7% to over a

one-month high, while Indonesian stocks added 0.7%.

Most Asian currencies were stronger. The Malaysian ringgit

rose 0.3% to break a three-session losing streak, while

the Singapore dollar rose 0.1%.

The Philippine peso fell slightly totrade near its

four-week lows of 60.76 a dollar.

The Indonesian rupiah weakened to 17,230 per dollar,

not far from the record low of 17,320 it plumbed last week.

HIGHLIGHTS:

** Taiwan court hands out jail terms of up to 10 years in TSMC

trade secrets case

** Activist Palliser takes stake in Japan's SMC, proposes $3.8

billion buyback, letter shows

** US grants extension to import Russian oil, says Philippines

Asia stock indexes and currencies

at 0708 GMT

Japan +0.08 -1.63

1.4 16.8

China India +0.03 -4.62 0.59 -8.00

Indonesia -0.06 -3.08 0.60 -17.06

Malaysia +0.28 +2.66 0.25 2.65

Philippines -0.05 -3.15 -0.71 -2.51

S.Korea Singapore +0.15 +0.91 -0.62 5.30

Taiwan +0.30 +0.05 1.76 36.78

Thailand -0.02 -2.71 1.56 17.39