* Rupiah hits record low of 17,192 a dollar

* MSCI EM Asia set for 3.5% weekly rise

* Malaysia Q1 GDP grows by 5.3%

* Stocks in Singapore, South Korea, Taiwan rebound to

pre-war levels

(Updates for afternoon trade)

By Rajasik Mukherjee

April 17 (Reuters) - The Indonesian rupiah sank to a

record low on Friday, while emerging Asian equities were set for

strong weekly gains as investors grew more optimistic the Middle

East conflict could be coming to an end.

U.S. President Donald Trump expressed confidence that an

agreement could soon be reached to end the war and urged the

Tehran-aligned Hezbollah group to hold its fire as a 10-day

truce went into effect between Lebanon and Israel.

Some Asian equity markets have recouped losses triggered by

the outbreak of the conflict, with shares in Singapore, Taiwan

and South Korea climbing back to pre-war levels.

The MSCI gauge of EM Asia equities, which

has fallen 0.9% since the war broke out, was set to end the week

3.5% higher. The broader global EM equities index was

on track for a third straight week of gains, rising about 3%.

Stocks in South Korea and Taiwan were headed

for weekly gains of more than 5% and 4%, respectively.

"There is a slight risk aversion going into the weekend

given the tendency for tensions to flare and conflict to

escalate when the markets are closed," said Kyle Rodda, senior

financial market analyst at Capital.com.

In Indonesia, the rupiah slipped to a record low of

17,192 per U.S. dollar, extending losses for 2026 to 3%, most of

which have come since the conflict erupted in late February.

Shares in Jakarta were on track to end the week with

a gain of more than 2%. So far this month, Indonesia's equity

markets have seen 6.07 trillion rupiah ($353.17 million) of

foreign outflows, LSEG data showed.

"At this point, IDR's downward pressure comes from almost

every direction: capital outflow in Indonesian bonds, lack of

ammunition from its central bank, and the fact that the country

is a net energy exporter in a highly uncertain geopolitical

circumstance," said Glenn Yin, director of research at brokerage

ACCM.

In Malaysia, advance estimates showed economic growth slowed

in the first quarter from the prior three months. An inflation

print showed March consumer prices rose in line with the

forecast, but accelerated from February.

Barclays analysts said the slowing growth in the

first-quarter and limited evidence of second-round inflation

pressures would lead Malaysia's central bank to stand pat at

their next policy meeting.

Equities in Kuala Lumpur were on course to end the

week unchanged.

Thailand's benchmark index shed more than 1% to its

lowest since April 7, losing 2.2% so far this week.

Stocks in the Philippines declined 0.4%, and were set

to end the week 1% lower.

HIGHLIGHTS:

** IMF keeps Asia's growth forecasts roughly unchanged from

January

** Indonesia to double capital requirement for securities firms,

certain asset managers

** S&P to maintain Indonesia's sovereign rating at BBB with

stable outlook, minister says

Asia stock indexes and currencies at 0812 GMT

Japan -0.02 -1.61 -1.75 16.16

China >

India >

Indonesia -0.32 -2.97 Malaysia -0.05 +2.58 Philippines -0.07 -2.04 -1.06 -0.89

S.Korea >

Singapore -0.01 +1.03 -0.16 7.61

Taiwan >

Thailand >

($1 = 17,187.0000 rupiah)

(Reporting by Rajasik Mukherjee in Bengaluru; Editing by Kate

Mayberry and Mrigank Dhaniwala)