EMERGING MARKETS-Asian FX, stocks rise as dollar softens on benign US inflation

(.) * Taiwanese stocks hit record high * India stocks touch all-time high * Taiwan c.bank likely to keep rates unchanged - Reuters poll * Fed projects one rate cut this year By Adwitiya Srivastava June 13 (Reuters) - Most emerging Asian currencies and stocks rose on Thursday after the greenback faltered following softer-than-expected U.S. inflation data, while the Federal Reserve signalled fewer rate cuts this year. The South Korean won was among the top gainers in the region, advancing as much as 0.7%, while the Malaysian ringgit inched up 0.1%. Among equities, stocks in Seoul jumped 1%, while the Singapore and Malaysian benchmarks jumped 0.5% and 0.3%, respectively. On Wednesday, data showed U.S. consumer prices were unexpectedly flat in May, while the Fed held rates and indicated that it could delay the start of policy easing until December. Policymakers' median projection of the number of rate cuts this year dropped to just one, from three in March. With regard to the dollar index, "we still see upside risks, given that we remain in an uncertain transitory period on inflation and markets may continue to be cautious," analysts at Maybank said. Higher for longer U.S. rates will also do no favours for Asian FX with "dot plots" now indicating only one cut this year, they said. The Thai baht was down 0.3% on the day, while stocks were largely flat. The Bank of Thailand (BoT) kept its policy rate unchanged at 2.50%, as expected. However, a shift in the vote split, with one dissenter calling for a 25 basis point cut versus two in the last two meetings, suggests the window for an easing pivot has narrowed, ANZ analysts said. "Considering the rising political uncertainties and the potential implications for fiscal policy implementation... it is still too soon to rule out a rate cut this year." Taiwan's central bank is expected to maintain its policy rate later in the day, and will likely continue doing so until late next year as it deals with persistent inflation concerns, according to a Reuters poll. The benchmark jumped as much as 1.8% to hit a record high, while the Taiwanese dollar rose 0.2%. Elsewhere in Asia, India's retail inflation rate eased slightly in May, partly due to a decline in gasoline prices despite high food prices, according to government data on Wednesday. Indian stocks jumped as much as 0.7% to hit a record high, while the rupee was flat. HIGHLIGHTS: ** China to resolutely safeguard the stability of FX market, regulator says ** China urges EU to reverse 'wrong direction' on EV tariffs ** IMF approves second review of Sri Lanka's $2.9 billion bailout Asia stock indexes and currencies at 0720 GMT COUNTRY FX RIC FX FX INDE STOCKS STOCKS DAILY % YTD % X DAILY YTD % % Japan -0.31 -10.2 <.N2 -0.40 16.32 6 25> China EC> India +0.02 -0.39 <.NS 0.34 7.69 EI> Indonesi +0.12 -5.38 <.JK 0.24 -5.59 a SE> Malaysia +0.13 -2.53 <.KL 0.26 10.90 SE> Philippi +0.18 -5.46 <.PS -0.30 -0.92 nes I> S.Korea 11> Singapor -0.16 -2.22 <.ST 0.52 2.60 e I> Taiwan +0.20 -4.90 <.TW 1.19 24.43 II> Thailand -0.30 -6.79 <.SE 0.02 -6.98 TI> (Reporting by Adwitiya Srivastava in Bengaluru; Editing by Rashmi Aich and Sonia Cheema)