*

South Korean shares jump as much as 2.2%

*

Taiwan's April CPI due later in the day

*

Malaysia rate decision due on Thursday

(Updates at 0631 GMT)

By Ayushman Ojha

May 7 (Reuters) - Most Asian stock markets extended

gains on Tuesday on the back of renewed bets for U.S. rate cuts

after last week's cooler-than-expected jobs data, while the

region's currencies were subdued as the dollar ticked higher.

The Indonesian rupiah fell 0.2%, losing the ground it

gained on Monday after data showed the country's economy in the

January-March period grew at its fastest pace in three quarters.

The Philippine peso inched 0.1% lower after country's

annual inflation increased for a third straight month in April,

backing the central bank's recent decisions to keep monetary

policy restrictive.

Regional markets are still cautious about the future path of

U.S. interest rates as they have not seen a strengthening in

Asian currencies even with U.S. yields falling, said Lloyd Chan,

senior currency analyst at MUFG Bank.

"The dollar is still attractive. It has a relatively higher

carry compared to many Asian currencies, and the rate

differentials is in favour of the U.S. and continues to weigh on

the (regional) currencies," Chan said.

Thailand's baht and the Taiwanese dollar

each fell by 0.2%. Taiwan is scheduled to report its April

inflation numbers later on Tuesday.

Bucking the regional trend, the South Korean won

was 0.2% higher.

Meanwhile, Asian stocks rose further on optimism from the

Federal Reserve hinting at a dovish bias after last week's

slower-than-expected job growth, which reinforced bets on rate

cuts later in the year.

Interest rates markets price in at least one U.S. rate cut

this year, in November. FEDWATCH

MSCI's broadest index of Asia-Pacific shares outside Japan

was up 0.2%.

South Korean stocks surged as much as 2.2% after

returning from a holiday on Monday, tracking Wall Street gains

overnight.

Singapore stocks rose as much as 0.3%, while

Malaysian shares gained 0.8%, touching a fresh two-year

high. Market participants now await Malaysia's key rate decision

on Thursday.

Stocks in Taiwan rose as much as 0.8%, while

Thailand shares reached their highest level in four

weeks with a 1.1% jump.

Philippine stocks were 0.2% lower, while stocks in

Indonesia edged 0.1% lower after rising as much as 0.3%

in early trade.

Meanwhile, the yen weakened 0.4%, after last

week's gains on suspected intervention from Japanese authorities

to stop a sharp slide in the currency.

HIGHLIGHTS:

** South Korea FX reserves log biggest monthly drop in 19

months on intervention

** Japan warns of action over rapid currency moves

** Thai finmin says ready to talk to c.bank chief on policy

Asia

stock

indexes

and

currenc

ies at

0631

GMT

COUNTRY FX RIC FX FX INDE STOCK STOCK

DAILY YTD X S S YTD

% % DAILY %

%

Japan -0.38 -8.6 China 6 EC>

India -0.01 -0.3 Indones -0.22 -4.1 Malaysi -0.08 -3.1 Philipp -0.10 -3.2 S.Korea 0 11>

Singapo -0.19 -2.5 Taiwan -0.21 -5.1 Thailan -0.15 -7.0 (Reporting by Ayushman Ojha in Bengaluru; Editing by Jamie

Freed and Subhranshu Sahu)