* Taiwan shares hit record high
* Singapore stocks at highest level in over 2 yrs
* Investors eye basket of data, due Friday

By Roshan Thomas
       July 4 (Reuters) - Asian currencies gained ground
against a weaker dollar on Thursday, and equities climbed with
those in Taiwan touching a record high, as data suggested the
U.S. economy was cooling, fuelling hopes for a September rate
cut by the Federal Reserve.
    Taipei stocks rose as much as 1.6% to touch a record
high, boosted by chip stocks following a strong overnight
performance on Wall Street. Equities in Singapore inched
up 0.6% to remain at their highest level since April 2022.
    Manila shares rose 0.9% to their highest level in a
month, while stocks in Jakarta gained 0.7% to record
their highest level since May-end.
    Regional currencies also edged higher, with the South Korean
won, the Taiwanese dollar and the Malaysian
ringgit appreciating between 0.2% and 0.3%.
    The dollar index was on the back foot on Thursday
after the release of softer-than-expected economic data on
Wednesday, including a weak services report and ADP employment
figures, indicated a slowdown in the U.S. economy.
    Meanwhile, minutes of the Fed's June 11-12 meeting showed
that officials noted a slowing U.S. economy and reduced price
pressures, advocating caution before deciding on interest rate
cuts.
    As a result, investors are betting the Fed's easing cycle
could commence in September. Markets are now pricing in about a
67% chance of the Fed cutting interest rates at its September
meeting compared to about 60% a week ago, according to the CME
FedWatch Tool. 
    Separately, a Reuters poll showed that emerging market
currencies are unlikely to recover this year's losses against a
strong dollar in the next six months, given China's economic
challenges and the Fed's reduced rate cut expectations. 
    "The dollar is still strong and may remain strong for rest
of the year due to U.S. election risks and Fed keeping policy
rates high for longer (we expect first rate cut from Fed in
December 2024). This will keep central banks in Asia to remain
on hold bias," said Chandresh Jain, Rates and FX strategist,
Asia, Global Markets, BNP Paribas.
    "We expect Bank of Korea could be the first central bank in
Asia to cut policy rates this year. Inflation has come down
faster then BoK’s own projection," Jain added.
    Regional investors are now awaiting inflation data from
Thailand, the Philippines and Taiwan, and U.S. nonfarm payrolls
data, all due to be released on Friday.
   

    HIGHLIGHTS:    
    ** South Korea Vice Finance Minister Kim Byeong-hwan named
new financial regulator chief
    ** Sri Lanka reaches provisional deal on $12.5 bln bond
rework
    ** Philippines president orders de-escalation in South China
Sea, military chief says
    
  Asia stock indexes and                              
 currencies at 0413 GMT                          
 COUNTRY  FX RIC        FX     FX  INDE  STOCKS  STOCK
                     DAILY  YTD %     X   DAILY  S YTD
                         %                    %      %
 Japan               +0.11  -12.6  <.N2   0.55   21.93
                                6  25>           
 China                           EC>           
 India               +0.00  -0.38  <.NS    0.28  12.07
                                   EI>           
 Indones             +0.09  -5.84  <.JK    0.65  -0.40
 ia                                SE>           
 Malaysi             +0.17  -2.55  <.KL    0.19  11.26
 a                                 SE>           
 Philipp             -0.03  -5.59  <.PS    0.90   0.90
 ines                              I>            
 S.Korea                         11>           
 Singapo             +0.07  -2.48  <.ST    0.58   6.02
 re                                I>            
 Taiwan              +0.28  -5.55  <.TW    1.35  30.97
                                   II>           
 Thailan             +0.11  -6.70  <.SE    0.94  -7.69
 d                                 TI>           
 
    
 (Reporting by Roshan Thomas in Bengaluru; Editing by Sonali
Paul)