EMERGING MARKETS-Asian FX ease, stocks struggle for direction on US rate uncertainty

(.) * South Korean won falls 0.9% * Indonesia's stocks jump 1.1%, hit 7-week high * Malaysian stocks at highest level since March 1, 2022 * Indonesia and South Korea rate decisions expected next week By Poonam Behura May 17 (Reuters) - Emerging Asian currencies edged lower on Friday, while stocks largely flitted in and out of negative territory, as hawkish comments from Federal Reserve officials clouded the timeline for potential U.S. rate cuts. A market rally sparked by softer U.S. inflation fizzled out as the greenback rebounded following a tight labour market data and caution from central bankers about inflation. "While USD may adjust lower in light of recent softness in U.S. data, there may also be a limit to how much lower the USD can go as the USD still retains a carry advantage, broadly," OCBC currency strategist Christopher Wong said.