EM ASIA FX-Most Asian FX restrained by cautious sentiment, rupee rallies

(Adds text, updates prices)

Dec 15 (Reuters) - Most emerging Asian currencies traded in

narrow ranges on Friday, restrained by weak equity markets and a

lack of fresh catalysts though the Indian rupee rose on signs

the country's ruling party could win a key state election.

The Indian climbed nearly half a percent against the dollar,

after exit polls showed Prime Minister Narendra Modi's Bharatiya

Janata Party (BJP) will likely win elections in the his home

state of Gujarat but caution remains ahead of the actual

results. The state election is seen as a litmus test for Modi

ahead of a national election in 2019.

"A possible landslide victory by the BJP could signal

strength in the coalition, paving the way for PM Modi to

continue his economic policies," Maybank said in a note on

Friday.

In a sign of wider caution in the region, MSCI's broadest

index of Asia-Pacific shares outside Japan was

down 0.5 percent on Friday.

The Indonesian rupiah and the Philippine peso

were trading flat after their central banks kept their

key interest rates unchanged, as expected.

On Thursday, Indonesia's central bank said future policy

decisions would depend on inflation and a stable rupiah currency

amid rate rises by the U.S. Federal Reserve and other developed

economies.

The Philippine central bank dismissed concerns the economy

is at risk of overheating from strong domestic demand and

investments.

China' yuan was slightly higher against the

dollar on the day.

However, most regional currencies were headed for weekly

gains.

On Friday, the dollar index was on the defensive

after wrangling over a bill to change the U.S. tax code dented

confidence. The dollar index was marginally higher at 93.566 on

the day.

The passage of the tax reform took a hit after two U.S.

Republican senators on Thursday were reported to have sought

changes to the proposed legislation to overhaul the U.S. tax

code.

The tax bill needs a simple majority to pass in the Senate,

in which Republicans hold just 52 of the 100 seats and no

Democrats are expected to support it.

Some analysts said the passage of U.S. tax reform would

support Asian currencies.

"Tax reform is good for U.S demand, which is good for Asian

exports. So dollar may not necessarily be very strong against

Asian currencies (next year)," said Nizam Idris, head of

strategy, fixed income and currencies at Macquarie Bank.

"But the dollar has a bit more upside against major

currencies, through policy differentials."

Profit taking at the year-end also kept regional currencies

in check.

Exchange data showed foreigners have sold more than $1

billion in Taiwan equities and $940 million in South Korean

equities this month.

There were net outflows in Indonesia, Philippine and

Thailand markets also.

The following table shows rates for Asian currencies against

the dollar at 0629 GMT.

CURRENCIES VS U.S. DOLLAR

Change on the day

at 0629 GMT

Currency Latest Previous Pct

bid day Move

Japan yen 112.20 112.38 +0.16

Sing dlr 1.3464 1.3455 -0.07

Taiwan dlr 29.994 30.006 +0.04

Korean won 1088 1089.1 +0.11

Baht 32.530 32.5 -0.09

Peso 50.460 50.47 +0.02

Rupiah 13573 13575 +0.01

Rupee 64.11 64.34 +0.37

Ringgit 4.083 4.083 +0.00

Yuan 6.607 6.6095 +0.03

Change so far in

2017

Currency Latest End 2016 Pct

bid Move

Japan yen 112.20 117.07 +4.34

Sing dlr 1.3464 1.4490 +7.62

Taiwan dlr 29.994 32.279 +7.62

Korean won 1088 1207.70 +11.01

Baht 32.530 35.80 +10.05

Peso 50.460 49.72 -1.47

Rupiah 13573 13470 -0.76

Rupee 64.105 67.92 +5.95

Ringgit 4.083 4.4845 +9.83

Yuan 6.607 6.9467 +5.14

(Reporting By Patturaja Murugaboopathy; Additional reporting

by Gaurav Dogra; Editing by Sam Holmes)