*

Taiwan stocks jump to all-time high

*

Bank Indonesia keeps rates unchanged

*

Bank of Korea rate decision in focus

(Updated at 0738 GMT)

By John Biju

May 22 (Reuters) -

Most Asian currencies struggled for direction while equities

edged higher on Wednesday ahead of the minutes of the U.S.

Federal Reserve's latest policy meeting that could provide more

insight into the central bank's interest rate trajectory.

The Indonesian rupiah was largely unchanged after

the country's central bank kept

interest rates steady

. The currency was last down 0.1% while equities

advanced 0.6%.

Bank Indonesia said the current benchmark level was

consistent with keeping inflation in check and maintaining the

stability of the rupiah.

The currency had dropped to four-year lows against the

U.S. dollar in April prompting the central bank to

raise rates.

"We think interest rates will be left unchanged over the

next few months, but there is a good chance of a cut before the

end of the year," Gareth Leather, senior Asia economist at

Capital Economics, said in a note.

The timing of a rate cut will be largely determined by

the rupiah's performance, Leather added.

Investors kept to the sidelines ahead of the release of the

Fed minutes, which could offer more cues on the timing and

extent of possible rate cuts this year.

Fed policymakers have indicated that they might need to see

further evidence of inflation slowing down before cutting rates.

"There is not much of a catalyst right now. We should still

expect the dollar-Asia to trade in the recent range until a

bigger catalyst comes along," said Christopher Wong, a FX

strategist at OCBC.

Fed fund futures imply about a 66% chance of a rate

cut by September and have 43 basis points of easing priced in

for this year.

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

rose 0.3%. Shares in Taiwan climbed more

than 1% to hit a record high ahead of AI chipmaker Nvidia's ( NVDA )

quarterly results.

An interest rate decision from the Bank of Korea is also on

investors' radar this week. The central bank is expected to keep

interest rates unchanged.

South Korea's won and equities were

largely unchanged.

HIGHLIGHTS:

** Japan's 10-year yield hits 11-year high of 1% as BOJ bets

build

** South Korea presidential office says short-selling ban to

stay

** India open to buying back more bonds, cut short-term

borrowings

Asia

stock

indexes

and

currenc

ies at

0738

GMT

Japan -0.18 -9.83 -0.85 15.40

China EC>

India +0.04 -0.08 Indones -0.06 -3.78 Malaysi - -2.13 Philipp +0.14 -4.70 S.Korea 11>

Singapo -0.04 -2.11 Taiwan +0.02 -4.81 Thailan +0.08 -6.04