* KOSPI rises 6%

* Philippine peso set for seventh decline in eight sessions

* Thai baht snaps six sessions of declines

By Rajasik Mukherjee

June 25 (Reuters) - A surge in South Korean stocks helped a gauge tracking Asian equities to regain its footing on Thursday, with upbeat Micron Technology ( MU ) results reviving confidence in AI demand, while regional currencies weakened against a strong U.S. dollar.

The MSCI Emerging Markets Asia gauge was about 2% higher, rebounding from a near two-week low.

South Korea's KOSPI index rose as much as 6%, on track for its best session since June 12.

Over two sessions, the index, a heavyweight on the MSCI gauge, has risen nearly 8% from Tuesday's 10% drop - the steepest since March - that sparked a global tech selloff.

The volatility underscores investor concerns that valuations for AI-related companies have become stretched following years of gains. South Korean market regulator's signals that the sector's rally had gotten overheated added to those fears.

Samsung Electronics ( SSNLF ) and SK Hynix shares rose by 6.2% and 11.6%, respectively, on Thursday, as chipmakers rallied, tracking Micron Technology's ( MU ) upbeat quarterly results.

SK Hynix's plans to raise up to $29.4 billion through a U.S. stock market listing in what would be among the biggest listings globally, also lent support to the positive sentiment.

"Targeted sell-off suggests investors are enforcing strict valuation discipline following an extended, aggressive run in AI-adjacent and speculative growth equities ... serving notice that realised earnings must now step up to justify stretched multiples," said Chris Strazzeri, financial dealing manager at Moomoo Australia and New Zealand.

"And that's pretty much what Micron delivered after-market, with its powerhouse result boosting tech sentiment overall."

Taiwanese shares, another tech-heavy index in the region, rose as much as 1.6%.

Elsewhere, Thailand's stock index rose over 1%, a day after its central bank kept its rates steady, while upgrading its economic growth forecasts.

Indonesian equities rose 1.5%, 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 on Thursday, as traders bet a strong U.S. economy would prop up short-term interest rates, putting pressure on the emerging Asian currencies.

"Asia FX has come under broad-based pressure against the US dollar, with several ASEAN currencies leading losses since last week's FOMC meeting," MUFG analyst Lloyd Chan said in a note.

"A high-for-longer US rates environment is likely to remain a near-term headwind for regional currencies, particularly lower-yielding ones."

Philippine peso led losses, declining 0.6%. The currency was set to lose for the seventh time in the last eight sessions.

South Korean won and the Taiwan dollar both inched 0.3% lower, while the Indonesian rupiah traded largely flat.

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.

Malaysian ringgit and the Indian rupee went against the tide to trade higher, each appreciating over 0.5%.

In other news, powerful earthquakes struck Venezuela on Wednesday afternoon, toppling buildings in the capital Caracas, trapping people in the rubble and prompting scientists to warn of potentially heavy casualties and widespread destruction.

HIGHLIGHTS:

** Trump, Republican senator engage in shouting match over Iran war

** Thai May exports rise 10.6% y/y, below forecast

** China central bank to add overnight reverse repo tools next week

Asia stock indexes and currencies at 0448 GMT

COUNTRY FX RIC FX FX YTD INDEX STOCK STOCK

DAILY % S S YTD

% DAILY %

%

Japan +0.03 -3.14 China >

India >

Indonesia +0.03 -6.98 4

Malaysia +0.61 -1.31 Philippine -0.42 -3.82 1.06 0.03

s

S.Korea > 8

Singapore +0.00 -0.86 -0.03 12.23

Taiwan >

Thailand >