*

South Korean shares jump 2%

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Taiwan's April CPI due later in the day

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Malaysia rate decision due on Thursday

By Ayushman Ojha

May 7 (Reuters) - Most Asian equities markets continued

a bullish run 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 despite a slightly

weaker dollar.

The Indonesian rupiah fell 0.2%, losing the ground it

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

first quarter grew at its fastest pace in three quarters.

The Philippine peso was largely unchanged 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 added.

The Thai 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 0.3% higher.

Meanwhile, Asian stocks continued their rally on optimism

from the Federal Reserve hinting at a dovish bias after last

week's slower-than-expected job growth in U.S., which reinforced

bets on rate cuts later in the year.

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

year, in November. FEDWATCH

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

was up 0.3%.

South Korean stocks surged as much as 2% after

returning from a holiday on Monday, tracking Wall Street gains

overnight.

Taiwan shares rose as much as 0.8%, while stocks in

Indonesia added as much as 0.3%.

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.

Philippine stocks were 0.2% lower after the inflation data.

Meanwhile, the yen weakened 0.5% on Tuesday, after

gains last week 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

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COUNTRY FX RIC FX FX INDE STOCK STOCK

DAILY YTD X S S YTD

% % DAILY %

%

Japan -0.43 -8.7 China 5 EC>

India +0.00 -0.3 Indones -0.17 -4.0 Malaysi -0.06 -3.1 Philipp -0.03 -3.2 S.Korea 6 11>

Singapo -0.08 -2.4 Taiwan -0.18 -5.1 Thailan -0.11 -7.0