*

S.Korea's KOSPI gains for 11th session

*

MSCI EM Asia at July 2021 peak

*

Thai stocks gain for 8th session

*

Indonesia erases early gains, down 0.2%

*

EM currencies gain against the dollar

*

Taiwan's dollar at four-week high

(Updates for afternoon trade)

By Sameer Manekar

Sept 16 (Reuters) - Taiwan and South Korea shares

touched record highs on Tuesday, driving emerging Asian equities

to a four-year peak, buoyed by hopes that the U.S. Federal

Reserve will resume its easing cycle and signal room for further

interest rate cuts on Wednesday.

The MSCI Asia EM equities index jumped 1% to

its highest since July 2021, while a gauge tracking stocks in

ASEAN countries, dominated by Singapore,

Malaysia, and Indonesia, hovered around its early 2020 levels.

Global stock markets have been buoyant over the past few

sessions as investors scoop up risk assets ahead of the expected

Fed rate cut. Investors will be paying close attention to the

central bank's language on the economic outlook and inflation,

for clues on its next steps.

Futures have already begun factoring in 127 basis points

worth of cuts by the Fed by next July.

"We see several factors supporting the ongoing rerating of

these inexpensive Asian markets," said Desh Peramunetilleke,

head of quantitative strategy at Jefferies, Hong Kong.

"Some of the key factors include a weaker U.S. dollar, the

upcoming U.S. rate cuts, and country-specific catalysts."

Taiwan's benchmark gauge advanced 1% to scale a

record peak, led by a 2% rise in top contract chipmaker, TSMC

, while South Korea's KOSPI index extended

gains into its 11th consecutive session, its longest since

September 2019, to a life-time high.

In Southeast Asia, Indonesian shares erased early

gains to trade slightly lower in late hours, while the rupiah

firmed a touch to 16,360 per dollar, its best in a week.

Stocks in Thailand extended gains into their eighth

straight session to touch a seven-month high, while the baht

edged higher.

Singapore's FTSE Straits Times edged lower but

remained anchored around its record-high levels, while its

dollar firmed slightly to a near eight-week high.

Equities in the Philippines jumped 1.5%, while the peso

edged up marginally.

"ASEAN remains well placed for global monetary easing,

though the scope and pace of such easing will vary across ASEAN

depending on differing domestic conditions," said Kenneth Tang,

a senior portfolio manager at Amova Asset Management.

Emerging Asian currencies firmed against the U.S. dollar.

Taiwan's dollar appreciated the most in six weeks,

while Indonesia's rupiah touched a one-week high. South

Korea's won also edged up to snap a four-day losing

streak.

Markets in Malaysia were closed for a public

holiday.

HIGHLIGHTS:

** Yields on Indonesia's 10-year government bonds

at 6.335%

** Bank Indonesia and Taiwan's central bank to hold rates

this week - Reuters poll

** Japan's Nikkei notches fresh record; Bank of

Japan seen raising interest rates - Reuters poll

** China fires water cannon at Philippine ships in South

China Sea

** Thai c.bank chief: baht strength driven by weaker dollar;

rate cuts not affecting baht

Asia stock indexes and currencies at 0732 GMT

COUNTRY FX RIC FX DAILY FX YTD INDEX STOCKS STOCKS

% % DAILY YTD %

%

Japan +0.46 +7.12 0.30 12.55

China India +0.17 -2.78 0.51 6.57

Indones +0.06 -1.86 -0.05 12.05

ia

Malaysi - +6.38 - -2.57

a

Philipp +0.29 +2.05 1.51 -5.82

ines

S.Korea Singapo +0.23 +6.87 -0.19 14.33

re

Taiwan +0.50 +8.99 1.07 11.26

Thailan +0.25 +8.24 0.54 -6.67

d