EMERGING MARKETS-Asian FX steady, shares inch up ahead of Fed meet; Thai cenbank holds rates

(.) * Bank of Thailand holds interest rate * Indonesian stocks lowest since November 2023 * Taiwan stocks hit highest level ever * U.S. CPI and Fed decision awaited By Adwitiya Srivastava June 12 (Reuters) - Emerging Asian currencies were steady on Wednesday and equities notched modest gains ahead of key U.S. inflation data and the Federal Reserve's rate decision, while the Bank of Thailand (BoT) left its key interest rate unchanged, as expected. The Thai baht and equities in Bangkok remained largely unchanged after the central bank held its benchmark interest rate steady for the fourth consecutive meeting, defying public calls from the government to reduce borrowing costs. Meanwhile, Thai courts will convene on a trio of politically charged cases next week, including one that could potentially lead to the prime minister's dismissal. "Prolonged political turmoil could delay the budget for FY2025, which could affect Thailand's economic growth outlook as well," said Poon Panichpibool, a markets strategist at Krung Thai Bank. If that scenario materializes, it is possible that the BoT might have to provide some support to the economy via easing monetary policy with one-two rate cuts, he added. Elsewhere, the South Korean won and the Malaysian ringgit inched up, while the Singaporean dollar and the Chinese yuan barely moved against the dollar. Meanwhile, the Fed is expected to stand pat on its key interest rate later in the day, with traders pricing in a 52% chance of a cut in September, according to the CME FedWatch tool. Investors are also awaiting the U.S. inflation report, due at 1830 GMT. Asian central banks have been on a wait-and-see mode as sticky inflation and a U.S. tight labour market keep shifting expectations on when the Fed will cut rates and by how much. "Asia FX could face volatility from a potential upward shift in the Fed's median dot plot, which could push U.S. yields and the dollar higher," analysts at MUFG said. Stocks in Jakarta fell as much as 0.5%, hitting their lowest level since mid-November, while the rupiah ticked 0.1% lower, flirting with the psychologically crucial level of 16,300 per dollar. Stocks in Kuala Lumpur inched up 0.1%, while Taiwanese equities gained as much as 1.4% to scale their all-time high level. Financial markets in the Philippines were closed on Wednesday for a local holiday. HIGHLIGHTS: ** Bank Indonesia to use all monetary instruments to stabilise rupiah ** Philippine c.bank wants inflation firmly settled near target midpoint ** Pakistan to unveil budget with eye to winning new IMF bailout Asia stock indexes and currencies at 0705 GMT COUNTRY FX RIC FX FX INDE STOCKS STOCKS DAILY % YTD % X DAILY YTD % % Japan -0.15 -10.3 <.N2 -0.66 16.79 2 25> China EC> India +0.01 -0.42 <.NS 0.68 7.78 EI> Indonesi -0.06 -5.52 <.JK -0.35 -6.07 a SE> Malaysia +0.08 -2.61 <.KL 0.13 10.93 SE> Philippi - -5.53 <.PS - -0.62 nes I> S.Korea 11> Singapor +0.04 -2.45 <.ST 0.12 2.25 e I> Taiwan +0.07 -5.06 <.TW 1.18 22.97 II> Thailand +0.03 -6.91 <.SE 0.04 -7.01 TI> (Reporting by Adwitiya Srivastava in Bengaluru; Editing by Rashmi Aich and Sonia Cheema)