*

Taiwan, S.Korea stocks slip off record highs

*

MSCI EM Asia climbs for ninth consecutive session

*

Indonesia stocks down, rupiah firms ahead of c.bank

decision

*

Bank Indonesia to keep interest rate unchanged - Reuters

poll

By Sameer Manekar

Sept 17 (Reuters) - A record rally in most emerging Asia

equities came to a halt on Wednesday as investors globally

awaited a widely anticipated rate cut by the U.S. Federal

Reserve and its fine print to assess the scope for additional

policy easing.

Equity benchmarks in Taiwan and South Korea

slipped from their record levels scaled in the previous session,

with the latter falling more than 1% to snap an 11-session

winning streak, the index's longest in six years.

The MSCI gauge of EM Asia stocks was up

0.6%, as of 0417 GMT, climbing for the ninth consecutive session

to scale a four-year peak, though downbeat performances in

Taiwan and South Korea limited the upside. A similar index

tracking ASEAN equities had barely moved by noon

in Singapore.

Stocks globally have been buoyant over the past few sessions

as investors rush into risk assets on hopes that an imminent Fed

rate cut this week and signals of further easing will boost the

economy and ease worries over a weakening labour market.

Lower U.S. interest rates are a drag on the dollar, which

enhances the appeal for emerging market assets for their higher

yield and potential currency appreciation.

"Markets widely expect the Fed to cut rates by 25 basis

points, but the key focus is likely on its forward guidance,

specifically whether the dot plot signals a faster pace of cuts

through the rest of 2025 and into 2026," said Lloyd Chan, a

senior currency analyst with MUFG.

Traders have fully priced in a quarter-point Fed rate cut

later in the day, with futures factoring in 67.9 bps of cuts by

the end of the year.

In Southeast Asia, Indonesia's markets drifted in a

tight range, while its rupiah was a touch higher at

16,420 a dollar.

Bank Indonesia is widely expected to keep its key interest

rate unchanged later in the day, primarily to stabilise a

currency that has weakened 2% over the past month on pressures

from back-to-back rate cuts and the abrupt exit of a reputed

finance minister that sparked concerns over fiscal prudence.

"We view BI's pause as temporary, as policymakers take stock

of recent rupiah volatility in the wake of protests and cabinet

reshuffle, transmission of rate cuts undertaken this year, and

firm food inflation in the near-term," DBS analysts, led by

senior economist Radhika Rao, wrote in a client note.

Thailand's equity index edged lower and, if the

trend continues, would snap an eight-session winning streak that

followed the election of a new prime minister, with investors

eyeing the durability of political stability.

"Political stability (in Thailand) is improving, and the

recent cabinet formation alongside discussions on reviving

consumption subsidies and expanding fiscal support offers

reassurance," said Kenneth Tang, a senior portfolio manager at

Amova Asset Management.

"However, sustained improvement in investor confidence will

require more concrete evidence of effective policy execution."

Elsewhere, Singapore's FTSE Straits Times index fell

for a fourth consecutive day, though it remained about 50 pips

shy of its lifetime high scaled last Friday. The Singaporean

dollar also slipped off an eight-week high touched in the

previous session.

Stocks in Malaysia were barely changed after a

two-day break, while the ringgit hovered around a

five-week high of 4.1890 a dollar.

HIGHLIGHTS:

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

at 6.339%

** Thai baht up 8% YTD; c.bank eyeing gold trading

tax to curb strength

** Vietnam 'pretty confident' of FTSE Russell stock market

upgrade next month

Asia stock indexes and currencies at 0417 GMT

COUNTRY FX RIC FX DAILY FX YTD INDEX STOCKS STOCKS

% % DAILY YTD %

%

Japan -0.02 +7.28 0.10 12.67

China India +0.33 -2.44 0.26 7.03

Indones +0.06 -2.04 0.16 12.58

ia

Malaysi +0.26 +6.66 0.07 -2.50

a

Philipp -0.09 +2.14 0.46 -5.39

ines

S.Korea Singapo -0.03 +7.00 -0.28 14.21

re

Taiwan +0.19 +9.11 -0.62 10.58

Thailan -0.14 +8.12 -0.02 -6.59

d