EMERGING MARKETS-Asian currencies tepid, stocks higher ahead of Powell's testimony

(Updates at 0710 GMT) * Indonesia stocks at highest since May 28 * Indonesian rupiah falls after four straight sessions of gains * Malaysia and South Korea policy decisions on Thursday By Ayushman Ojha July 9 (Reuters) - Asian currencies were subdued on Tuesday while regional stocks ticked up, as investors globally awaited comments from U.S. Federal Reserve Chair Jerome Powell to assess the prospects of a rate cut in September. Powell is scheduled to deliver his semi-annual monetary policy testimony before Congress at 1400 GMT. Investors are hoping for dovish comments that will cement their bets on interest rate cuts this year, giving a fresh leg up to riskier assets and economies. Despite a softer U.S. dollar, the Indonesian rupiah was down as much as 0.4% after four consecutive sessions of gains, while the Taiwanese dollar lost 0.2%. The Thai baht, and the Singapore dollar were largely flat. The South Korean won edged 0.1% higher and the Malaysian ringgit was unchanged. Interest rate decisions from both countries are due on Thursday, where expectations are of a hold for now. Both the Bank Negara Malaysia and the Bank of Korea are expected to keep their key policy rates on hold, according to Reuters polls. "Currency weakness will remain the key constraint for these central banks in thinking about cutting interest rates ahead of the Fed," said Lloyd Chan, senior currency analyst at MUFG Bank. The Philippine central bank has more scope to cut interest rates at its next meeting in August after annual inflation slowed in June, its Governor Eli Remolona said. The Philippine peso was 0.2% higher. The U.S. consumer price data on Thursday will also be crucial in gauging the Fed's monetary policy path. Markets are now pricing in an 80% chance of a cut in September, up from 64% last week after recent data signalled a cooling economy. FEDWATCH Indonesian shares rose as much as 0.7% to their highest level since May 28, while Singapore stocks gained 0.5%, still hovering near their record high touched last week. The rally in Singapore shares is being driven by local bank stocks hitting record highs due to investor optimism about dividend payouts and higher-for-longer interest rates in the U.S. and Singapore, MUFG's Chan added. Shares in Kuala Lumpur gained as much as 0.4%, and Taiwan stocks rose 0.1% to a record high, while Thai stocks fell 0.3%, bucking the trend. Markets are also awaiting China's inflation data on Wednesday and advance gross domestic product estimates from Singapore on Friday. HIGHLIGHTS: ** Thailand central bank head says stronger growth needed ** Indonesia sees 2024 budget deficit at 2.7% of GDP, finance minister says Asia stock indexes and currenc ies at 0710 GMT Japan +0.04 -12.2 <.N2 4 25> 1.96 24.25 China EC> India +0.02 -0.32 <.NS 0.31 12.27 EI> Indones -0.12 -5.38 <.JK 0.58 0.28 ia SE> Malaysi -0.02 -2.51 <.KL 0.21 10.98 a SE> Philipp +0.17 -5.22 <.PS 0.42 1.65 ines I> S.Korea 11> Singapo +0.03 -2.24 <.ST 0.47 5.56 re I> Taiwan -0.24 -5.64 <.TW 0.09 33.29 II> Thailan +0.00 -6.11 <.SE -0.18 -6.76 d TI> (Reporting by Ayushman Ojha in Bengaluru; Editing by Kim Coghill and Eileen Soreng)