(Updates as at 0704 GMT)

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Most Asian currencies largely unchanged

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Philippine c.bank holds rates steady

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Philippine c.bank says rate cut in August is possible

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U.S. PCE inflation data in focus

By Roshan Thomas

June 27 (Reuters) - The Philippine peso and equities in

Manila maintained their modest gains after the central bank kept

its interest rate unchanged on Thursday as widely expected,

while shares in South Korea fell to mark their sharpest decline

in over two weeks.

The Philippine peso, which rose modestly before the

decision, was steady after the Bangko Sentral ng Pilipinas (BSP)

maintained its policy rate for a sixth straight meeting, as

expected in the Reuters poll.

Equities in the country advanced slightly up to 1.2%

to touch their highest level in more than a week, and were on

track to log their fourth straight day of gains.

The central bank, however, added that its next move could

likely be a rate cut as it expected inflation to slow after a

government order slashing tariffs on rice takes effect.

"We see the risk of further upside pressure on the PHP if

the central bank chooses to cut rates much ahead of the Fed,"

said Alan Lau, FX strategist at Maybank.

Elsewhere, South Korean shares tumbled more than 1%,

rattled by disappointing forecasts from U.S. chipmaker Micron.

Regional currencies showed limited movement, with the

Indonesian rupiah and the Malaysian ringgit

slightly weaker against the dollar, which remained near a

two-month peak ahead of the U.S. inflation data due on Friday.

A robust inflation print would delay expectations of

interest rate cuts, bolstering the dollar and putting pressure

on emerging market assets.

The data would likely be relatively benign, according to

Eugene Yuming Leow, a rates strategist at DBS. "This could

perhaps ease some of the headwinds for EM (emerging market)

assets."

As the first half of 2024 draws to a close, most Southeast

Asian currencies are deep in the negative territory, with the

Thai baht and the Indonesian rupiah emerging as the

worst performers.

"Investors are constantly on the lookout for better returns

on their investments," said Ruben Carlo O. Asuncion, chief

economist at the Union Bank of Philippines.

"With the U.S. Fed projecting to potentially cut lesser than

expected for this year, one would expect investment value

slanting toward USD-denominated investments."

Stocks in Taiwan, which soared last week in tandem

with their U.S. peers riding on the Nvidia ( NVDA ) wave, fell as much as

1%. Chipmaking giant TSMC down more than 1%.

In China, the Shanghai composite index lost 0.8%,

while shares in Thailand lost 0.7%. In contrast,

equities in Indonesia and Singapore were up 0.8%

and 0.4% respectively.

HIGHLIGHTS:

** Indonesian 10-year benchmark yields tick higher to 7.124%

** Japan finance minister says concerned over weak yen

impact on economy

** Japanese yen languishes near a 38-year low; struggles on

weaker side of 160/dollar

** South Korea to extend won trading hours from Monday

Asia stock

indexes and

currencies

at 0704 GMT

COUNTRY FX FX FX INDEX STOCKS STOCKS

RIC DAILY % YTD % DAILY % YTD %

Japan +0.24 -12.06 0.82 17.56

China -0.03 -2.35 -0.85 -0.93

India +0.11 -0.32 0.47 10.36

Indonesia -0.07 -6.20 0.67 -4.41

Malaysia -0.15 -2.69 -0.41 8.92

Philippines +0.15 -5.82 1.23 -0.92

S.Korea +0.21 -7.06 -0.29 4.85

Singapore +0.10 -2.79 0.36 3.19

Taiwan +0.00 -5.58 -0.35 27.75

Thailand +0.09 -7.37 -0.63 -7.42