* Thai baht up 0.4%
* Indonesian rupiah jumps 0.5%
* Indonesian benchmark index hits highest since Sept 2022

By Echha Jain
       Dec 27 (Reuters) - Most emerging Asian currencies and
equities gained on Wednesday, taking cues from a weakening U.S.
dollar and a Wall Street rally, as investors remained optimistic
that the U.S. Federal Reserve could begin cutting rates as early
as next March.
    MSCI's emerging market currency index rose
0.2% to touch its highest level since April 2022. 
    MSCI's emerging market Asia index advanced
0.5%, and was on track to post a yearly gain, snapping a
two-year losing streak. 
    Investors continue to bet on expectations that major central
banks globally could begin easing rates next year, with the Fed
leading the way.
    "The USD is being shunned by traders and this is allowing
emerging market currencies to shine," said KCM Trade analyst Tim
Waterer.  
    The yield advantage that the U.S. has enjoyed for much of
2023 looks set to be eroded next year once the Fed starts
cutting rates, Waterer added. 
    Thailand's baht strengthened 0.4% to hit its
highest level since Aug 3.
    The Indonesian rupiah, one of the best performing
currencies in the region so far this year, appreciated 0.5% to
hit its highest level in nearly a month. Equities gained
0.6% to hit their highest level since September 2022. 
    The Taiwanese dollar strengthened 0.4%, trading at
its highest level since April 20, while stocks advanced
0.6% to hit their highest since April 20, 2022.
    Central banks in Indonesia, Taiwan and the Philippines kept
their key interest rates unchanged in their last policy meetings
for the year this month, although while sounding less dovish
than the Fed.
    However, an easing inflation trend in the region is likely
to provide these central banks with little breathing room in
terms of rates. 
    Markets will now be watching closely for South Korea's
industrial output figures and Thailand's trade data due later in
the week.


    HIGHLIGHTS:    
    ** Indonesian defence minister and presidential candidate
Prabowo Subianto cemented his lead in the polls after candidates
took part in televised debates 
    ** Vietnam is forecast to have received foreign investment
inflows of $23.18 billion in 2023, up 3.5% from a year earlier,
the Ministry of Planning and Investment said
    ** Thailand will increase its minimum wage in January, the
government said, confirming a previous deal while planning to
raise it further in March
    
    
  Asia stock indexes and currencies at               
 0357 GMT                                       
 COUNTRY  FX RIC        FX     FX  INDE  STOCK  STOCK
                     DAILY  YTD %     X      S  S YTD
                         %               DAILY      %
                                             %  
 Japan               -0.13  -8.03  <.N2  1.12   29.06
                                   25>          
 China                           EC>          
 India               -0.05  -0.62  <.NS   0.26  18.74
                                   EI>          
 Indones             +0.49  +1.04  <.JK   0.59   6.27
 ia                                SE>          
 Malaysi             +0.09  -4.97  <.KL   0.24  -2.75
 a                                 SE>          
 Philipp             -0.32  +0.07  <.PS  -0.41  -1.40
 ines                              I>           
 S.Korea                         11>          
 Singapo             +0.02  +1.27  <.ST   0.28  -3.15
 re                                I>           
 Taiwan              +0.37  -0.79  <.TW   0.59  26.30
                                   II>          
 Thailan             +0.38  +0.36  <.SE   0.05  -15.2
 d                                 TI>              5
 

    
 (Reporting by Echha Jain in Bengaluru; Editing by Michael
Perry)