* KOSPI closes 5.4% higher

* Philippine peso set for seventh decline in eight sessions

* Thai baht snaps six sessions of declines

* SK Hynix hits record high on U.S. listing plan

(Updates for afternoon trade)

By Rajasik Mukherjee

June 25 (Reuters) - South Korean shares surged sharply on

Thursday on upbeat results from Micron Technology ( MU ) and SK Hynix's

plan for a U.S. listing, while Indonesian stocks and the rupiah

advanced a day after MSCI deferred its decision on Indonesian

equities until November.

South Korea's KOSPI index, Asia's biggest

beneficiary of the AI rally climbed 5.4% by the close.

The KOSPI index has rebounded nearly 8% in its last two

sessions, following Tuesday's 10% drop, underscoring the

tug-of-war between investor anxiety around rising interest rates

and stretched valuations and opportunistic dip-buying in Korean

tech shares.

Nvidia ( NVDA ) supplier SK Hynix roseas much as 15.8% to

hit a record high on Thursday, after Micron Technology's ( MU )

upbeat quarterly results set off a chipmaker rally.

The South Korean firm, which is the world's most valuable

memory chipmaker, said on Wednesday it aims to raise up to $29.4

billion through a U.S. listing, in what would be among the

biggest listings globally.

"Micron's earnings have provided fresh reassurance that the

AI investment cycle remains firmly intact," said Daniela

Hathorn, senior market analyst at capital.com.

Elsewhere, Taiwan's benchmark gauge rose as much as

1.6%, before paring somewhat to close around 0.5% higher.

Thailand's stock index rose over 1% a day after its

central bank kept its policy rate steady, while revising upward

its economic growth forecasts.

Indonesian equities rose more than 2%, on course to

snap a three-day losing streak, while stocks in Manila

traded in the green.

The dollar was heading toward its sharpest monthly

gain in almost a year, as traders bet a strong U.S. economy

would prop up short-term interest rates, putting pressure on

emerging Asian currencies.

"Asian currencies are weakening mainly on a stronger U.S.

dollar, supported by elevated U.S. yields and still-solid U.S.

data, which is keeping rate differentials wide and weighing on

EM FX," said Ruben Carlo Asuncion, chief economist at Union Bank

of the Philippines.

Philippine peso led losses, declining 0.6%. The

currency was set to weaken for the seventh time in the last

eight sessions.

The South Korean won and Indonesian rupiah traded

largely flat, while the Thai baht eked out marginal

gains, snapping a six-session streak of declines.

"The recent THB weakness came from relatively strong levels

amid still-robust external position, which could support tourism

and ease financial conditions for smaller exporters," said Chua

Han Teng, Senior Economist at DBS.

The Malaysian ringgit and the Indian rupee went

against the tide to trade higher, rising 0.5% and 0.3%,

respectively.

HIGHLIGHTS:

** Indonesia weighs $2 billion cut to Prabowo's signature free

meals programme

** Bears loosen grip on rupiah, rupee on lower oil prices,

policy support: Reuters poll

** Malaysia's foreign minister says new Myanmar leadership 'more

open' to suggestions

** Two major earthquakes strike Venezuela, killing at least 32

and injuring hundreds

Asia stock indexes and currencies at 0737 GMT

COUNTRY FX RIC FX DAILY FX YTD INDEX STOCKS STOCKS

% % DAILY YTD %

%

Japan -0.03 -3.19 4.61 43.76

China India +0.27 -4.81 0.70 -7.42

Indonesia -0.03 -7.03 2.02 -30.58

Malaysia +0.53 -1.39 -0.62 -0.50

Philippine -0.47 -3.87 1.33 0.30

s

S.Korea Singapore -0.03 -0.89 0.18 12.46

Taiwan -0.33 -1.32 0.46 59.70

Thailand +0.09 -5.77 0.66 23.72