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* S.Korean stocks end week 1.9% lower

* Philippine peso close to record low of 61.933/USD

* Indonesian stocks mark steepest fall since early July

By Shivangi Lahiri

July 24 (Reuters) - Emerging Asian equities returned to

negative territory on Friday, led by South Korea, as higher oil

prices rekindled inflation concerns and heavy AI spending by

U.S. tech giants unsettled investors.

Sentiment soured after Alphabet and Tesla

, the first of the "Magnificent Seven" to report this

earnings season, highlighted hefty AI infrastructure spending

that raised fresh questions over returns on such outlays.

South Korean shares bore the brunt of the regional selloff,

with the KOSPI falling 5.7% by the close after three

straight sessions of gains and ending the week 1.9% lower. AI

memory maker SK Hynix ( SKHY ) and rival Samsung Electronics ( SSNLF )

fell 8.3% and 7.4% respectively.

Taiwan stocks lost 2.7% at close, though they were

still up 2.3% on the week.

"Concerns over whether hyperscalers can justify massive AI

capex are weighing directly on Korea's memory makers and

Taiwan's chip supply chain," said Glenn Yin, director of

research at ACCM.

"Korea is probably the most exposed because it sits at the

intersection of both risks: semiconductors dominate exports

while the economy is highly dependent on imported energy."

Crude prices surged above $100 overnight, reigniting

inflation worries across energy-importing emerging Asian

economies on Red Sea attacks and disrupted Hormuz traffic.

In Southeast Asia, Philippine stocks slipped as much

as 1.5% to their lowest since July 6. The Philippine peso

weakened to 61.86 per dollar, headed for its sixth straight week

of losses and hovering near a record low of 61.933 against the

greenback.

The Philippines' heavy reliance on imported fuel leaves it

especially exposed to supply disruptions and price swings during

geopolitical crises. At the height of the conflict in March,

concerns over fuel supply and prices briefly forced the

suspension of electricity trading on the country's Wholesale

Electricity Spot Market.

Indonesian stocks dropped as much as 2.4%, marking

their sharpest intraday decline since late June, while the

rupiah hovered just above the key 18,000-per-dollar

level.

In Malaysia, stocks slipped 0.5%, while the ringgit

edged lower to 4.091 against the dollar.

Among other regional currencies, the South Korean won

firmed to 1,462.2 per dollar and was set for a near

1.3% gain for the week. Meanwhile, Taiwan's dollar

slipped to 32.452 against the greenback.

Markets now turn their focus to Singapore's central bank

meeting next week, with the Monetary Authority of Singapore

expected to keep monetary policy unchanged.

HIGHLIGHTS:

** Japanese investor selling of foreign bonds hits three-month

high as oil prices rise

** BOJ to raise rates again by December as weak yen revives

inflation risks

** Trump to impose 'forced labor' duties on Friday as temporary

10% US tariffs expire

** Thai finance ministry raises 2026 growth forecast to 2.5%

Asia stock indexes and currencies at 0644 GMT

COUNTRY FX RIC FX FX YTD INDEX STOCKS STOCKS

DAILY % % DAILY YTD %

%

Japan +0.05 -4.35 -2.74 24.64

China India +0.05 -6.89 -0.74 -9.32

Indonesia -0.45 -7.23 -1.75 -28.24

Malaysia -0.07 -0.83 -0.54 1.51

Philippin -0.14 -4.88 -0.96 2.80

es

S.Korea Singapore +0.10 -0.47 -0.40 19.66

Taiwan -0.56 -3.11 -2.67 50.72

Thailand +0.12 -6.87 -0.29 29.90