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Indian shares rebound after worst day in 4 years

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South Korean shares hit highest since May 29

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Philippine inflation rose for the fourth straight month

By Adwitiya Srivastava

June 5 (Reuters) - Most emerging Asian currencies inched

up as the dollar steadied on Wednesday and stocks were largely

mixed, while Indian stocks were volatile as investors digested a

unexpectedly narrow election win for Prime Minister Narendra

Modi's alliance.

The Nifty index was last up 2% having swung between

gains and losses in early trading.

The scenario of Modi's Bharatiya Janata Party (BJP) needing

to depend on regional parties, whose political loyalties have

wavered over the years, to form the government raised concerns

over economic policies, worrying investors.

"The election outcome poses near-term uncertainty but is

unlikely to alter the economy's path," DBS analysts wrote in a

note.

"Consolidation might return in the near-term as government

and cabinet formation looms in the background," they said,

adding that political developments are not expected to sway the

monetary policy direction or outlook for the country.

Elsewhere in Asia, the Malaysian ringgit, the Thai

baht and the Taiwanese dollar edged up 0.1%

each.

The South Korean won advanced 0.4% and was set

for its best day in nearly two weeks.

Official statistics released on Tuesday showed the country's

consumer inflation fell in May for the second consecutive month

to a 10-month low, coming in lower than market expectations.

Shares in Seoul rose 1.2% to their highest since May

29, propelled by heavyweight chipmaker Samsung Electronics ( SSNLF ) after

remarks by Nvidia's ( NVDA ) CEO allayed investor concerns about its

processors lagging behind competitors.

The Philippine peso rose 0.1%, while equities

in the region were up 0.4%, after data showed that Philippine

annual inflation quickened for a fourth straight month in May.

The Bangko Sentral ng Pilipinas (BSP) said the data was

consistent with its expectations that inflation could accelerate

over the near term.

On Tuesday, BSP Governor Eli Remolona had reiterated that

the benchmark policy rate, currently at a 17-year high of 6.50%,

could be cut before the U.S. Federal Reserve starts it easing

cycle.

Other regional stock markets also rose. Shares in Bangkok

rose 0.3%, while those in Taiwan and Singapore

rose 0.6% and 0.3%, respectively.

Bets on an interest rate cut in September by the U.S.

Federal Reserve firmed after data showed U.S. job openings fell

more than expected in April to the lowest level in more than

three years, a sign that labour market conditions are softening.

Global investors are now looking out for the European

Central Bank's policy decision on Thursday and for monthly U.S.

payroll figures due on Friday.

Bucking the positive trend in Asia, the Indonesian rupiah

was down 0.3% at its lowest since April 8, while equities

dropped 1.4%.

Indonesia's central bank will continue to intervene in the

foreign exchange market amid global volatility, its governor

said on Wednesday, adding the rupiah would strengthen next year.

In Mexico, the peso extended losses for a second

session on Tuesday after a strong election victory for the

country's ruling party sparked concerns the government could

easily pass disputed constitutional reforms.

HIGHLIGHTS:

** Thai business group keeps 2024 GDP growth forecast at

2.2% to 2.7%

** India's May services growth cools to five-month low, PMI

shows

** China's robust services activity drives up employment,

Caixin PMI shows

Asia stock indexes and currencies at

0601 GMT

COUNTRY FX RIC FX FX INDE STOCKS STOCKS

DAILY % YTD % X DAILY YTD %

%

Japan -0.50 -9.37 ! !

China EC>

India +0.15 -0.23 Indonesi -0.31 -5.35 Malaysia +0.06 -2.28 Philippi +0.10 -5.64 S.Korea 11>

Singapor +0.04 -1.99 Taiwan +0.10 -5.03 Thailand +0.09 -6.57