* Singapore's 2026 growth forecast rises to 4.5%-5.5%

* Rupiah falls 0.4%; peso sheds 0.8%

* Oil rises to one-week high

(Updates for afternoon trade)

By Nichiket Sunil and Kumar Tanishk

Aug 11 (Reuters) - Singapore stocks raced to an all-time

high on Tuesday after the city-state hiked its annual growth

forecast on an AI-powered boost, while the Indonesian rupiah and

the Philippine peso led regional currencies lower on elevated

oil prices.

The FTSE Straits Times Index rose as much as 1.3% to

a record high of 5,774.21 before paring some gains to trade 0.6%

higher, heading for a third straight session of gains.

Singapore raised its 2026 growth forecast to 4.5%-5.5% from

2.0%-4.0% on a stronger-than-expected global investment in AI

and a smaller drag from geopolitical tensions in the Middle

East. The revision comes alongside a GDP expansion of 5.9% in

the second quarter, higher than advance estimates.

The data is another vindication of Singapore's safe-haven

status and ability to navigate the current web of macro

uncertainties, said DBS Group Research analyst Yeo Kee Yan,

adding that the biggest transmission mechanism for the benchmark

remains the banks.

The data further amplifies appetite for Singapore's equities

after three of its largest banks reported stronger profits, with

their wealth management fees boosted by Asia's growing affluent

population, he added.

"Stronger domestic and regional activity supports loan

growth, transaction volumes and wealth-management fees, helping

to offset pressure on net interest margins. The GDP upgrade is

seen as providing another fundamental support for banks," Yeo

said.

Top lenders DBS and OCBC climbed as much

as 2.2% and 4.2%, respectively, to record highs.

Singapore's dollar was little changed on the day, but

remained among the region's best-performing currencies this

year, gaining about 0.4% against the U.S. dollar.

Elsewhere, most Southeast Asian currencies weakened as oil

prices hovered near one-week highs after fading hopes of a

U.S.-Iran agreement stoked concerns over energy costs for the

region's net importers.

The Philippine peso dropped as much as 0.9% to 61.243

a dollar, the Thai baht weakened 0.5%, and the

Malaysian ringgit slipped 0.1%.

The Indonesian rupiah lost as much as 0.6% to 17,850

per dollar, nearly wiping out the gains secured in the previous

session after insider Destry Damayanti was nominated as the sole

candidate for central bank chief, easing some concerns over Bank

Indonesia's independence.

MSCI will release its August index review on Wednesday, with

no changes expected for Indonesia after the provider extended

its market status review until November.

Jakarta stocks slipped 1.5% to a one-week low.

Tech-heavy benchmarks gained on the day, with bellwether

South Korea's KOSPI adding 0.7% and Taiwan

closing 0.4% higher.

HIGHLIGHTS:

** Malaysia renews 10-year energy plan, targeting savings of

around $21.5 billion

** BOJ's rate-hike path runs into Takaichi's bond market

problems

** China central bank reverse repo volume at zero for first

time since June

** Indonesia's June retail sales fall to 3% y/y, c.bank

survey shows

** Taiwan, South Korea drive Asian equity outflows in July

as AI worries bite

Asia stock indexes and currencies at 0739 GMT

COUNTRY FX RIC FX FX YTD INDEX STOCK STOCK

DAILY % % S S YTD

DAILY %

%

Japan +0.02 -1.65 China >

India >

Indonesia -0.39 -6.45 7

Malaysia -0.07 -0.86 Philippines -0.79 -3.92 0.60 4.53

S.Korea >

Singapore -0.05 +0.36 0.62 23.41

Taiwan >

Thailand >