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Thai stocks highest since May-end

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Indonesia equities set for seventh straight day in green

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Asia FX mixed on prolonged tariff jitters

(Updates as of 0702 GMT)

By Rishav Chatterjee

July 15 (Reuters) - Bangkok equities surged on Tuesday

on reports that Thailand will name a proponent of aggressive

monetary policy easing as its next central bank governor, while

markets in Singapore and Indonesia held onto their recent

rallies.

The benchmark index in Thailand gained up to 0.8%,

hitting its highest since May 30, led by Airports of Thailand's

5.2% rise. The Thai baht was trading slightly

higher.

Next week, Thailand's finance minister will propose to

the cabinet state-owned bank head

Vitai Ratanakorn

as his pick for the next central bank governor, according

to two government sources and local media.

The appointment may reignite concerns over the Bank of

Thailand's independence, as the nominee holds a dovish policy

stance, contrasting with current governor Sethaput

Suthiwartnarueput, who has pushed back against calls for rate

cuts and a higher inflation target.

"There could be some positive sentiment regarding the result

of the process of selecting the new Bank of Thailand governor,"

said Poon Panichpibool, a markets strategist at Krung Thai Bank,

noting that the candidate to be proposed was "quite dovish" and

"is well co-ordinated with the government's policy".

In China, the Shanghai Composite index slipped

to a one-week low and the onshore yuan traded flat,

after data showed China's economy grew faster than expected in

the second quarter, though the pace slowed from the previous

three months.

While China's economy has so far avoided a sharp downturn,

investors are bracing for a softer second half as U.S. tariffs

begin to bite into exports.

Jakarta reversed its earlier dip and was on track

for a seventh straight session of gains. The rupiah fell

0.2%.

Indonesia's central bankers will meet on Wednesday to

decide on an interest rate call. The market seems divided over

what could Bank Indonesia decide, with 15 of 29 economists

eyeing a rate cut, according to a Reuters Poll.

"We are expecting Bank Indonesia to cut by 25 basis points

as we do not believe the currency would hold the central bank

back this time," said Maybank analysts.

Investors in Singapore continued to demonstrate their

appetite for high-return defensive and property stocks, leading

equities in the city-state to a tenth-straight record

high. The Singapore dollar was unchanged.

Stocks in Taiwan added 1% after having closed 0.6%

lower on Monday. The respective Philippine and Malaysian

benchmark indexes dragged 1% and 0.5%.

Currency traders in emerging Asia found themselves assessing

the weak data from China and recent tariff developments, while

they await U.S. consumer prices data later in the day.

The Philippine peso and Taiwan dollar fell

while the South Korean won and Indian rupee

were trading higher.

HIGHLIGHTS

** Indonesia's 10-year benchmark yield ticks

higher to 6.608%

** Thai

central bank governor nomination

to be proposed to cabinet next week

** Malaysia

says

trade permit required for AI chips of U.S. origin

Asian

stocks

and

currenci

es as of

0702 GMT

Japan +0.01 +6.43 0.55 0.94

China EC>

India +0.17 -0.26 Indonesi -0.22 -1.14 Malaysia +0.00 +5.13 Philippi -0.13 +2.35 S.Korea 11>

Singapor +0.02 +6.55 Taiwan -0.02 +11.8 Thailand +0.03 +5.77