EMERGING MARKETS-Indonesia stocks rise ahead of c.bank meet, Asian currencies up

* BI expected to maintain rates at record low, meeting at 0700 GMT * Taiwan stocks hit two-week high * Singapore's GDP grows 1.3% year-on-year, shares rise By Harish Sridharan May 25 (Reuters) - Indonesian shares rose more than 1% on Tuesday ahead of a central bank policy meeting, while the rupiah and broader Asian currencies gained on the back of a weaker U.S dollar and a drop in U.S Treasury yields. Equities in Taiwan and South Korea took their cue from a jump on Wall Street, with the latter gaining as much as 2% and hitting a two-week high. The strong U.S. session also gave an added boost to Indonesia stocks, which climbed 1.4%. Southeast Asia's largest economy has struggled to regain momentum lost in the previous year when the COVID-19 pandemic erupted, despite record-low interest rates and capital injections. Bank Indonesia (BI) is expected to keep its key policy rate at all-time lows The rupiah, favoured by foreign investors looking to tap Indonesia's high-yielding bonds, has come under renewed pressure amid capital outflows. It tacked on 0.1% on Tuesday. "Despite the growth backdrop being weak and even with subsequent waves of COVID-9 infections hurting domestic demand, BI will prioritise macro-stability at its meeting, as it has in the past few months," an analyst at Mizuho Bank said in a note. However, he noted that for now BI remains largely tied to loose policy given the risks to outlook. Asia's other emerging currencies found support from a pullback in the U.S. dollar and Treasury yields after officials from the Federal Reserve reaffirmed a commitment to maintain loose monetary policy, brushing off recent hints of tapering bond purchases amid fears over high inflation. Stocks in Thailand and Philippines gained 0.7% and 0.3%, respectively, while the South Korean won strengthened 0.5%. Equities in Singapore advanced as much as 0.7%, hitting two-week highs, after the country maintained its growth forecast for 2021. The city-state's economy grew 1.3% in the first quarter year-on-year, expanding more than first thought as it benefited from improved manufacturing and wholesale trade. Stocks in Taiwan were the top gainers in the region and the currency was among the best. The country's industrial production for April marked the 15th consecutive month of year-on-year growth, even as it battles a sharp rise in coronavirus infections. "Sustained growth in domestic and external demand will continue to support Taiwan's industrial production moving forward. However, recent spike in Covid-19 cases in the country increases concern over the upcoming economic performance due to heightened state of restrictions," said MIDF Research. HIGHLIGHTS: ** Top gainer on the Jakarta stock index was Graha Layar Prima Tbk PT, up 25% ** Top gainer on the Singapore STI was Genting Singapore Ltd, up 2.47 ** Min Aik Technology Co Ltd and Ampacs Corp top gainers on the Taiwan SE Weighted Index Asia stock indexes and currencies at 0352 GMT COUNTRY FX RIC FX FX INDEX STOCKS STOCKS DAILY YTD % DAILY YTD % % % Japan +0.03 -5.03 - - China +0.13 +1.82 1.60 2.31 India +0.00 +0.14 0.62 9.37 Indonesia +0.11 -2.05 1.40 -2.25 Malaysia +0.10 -2.90 0.00 -3.40 Philippines -0.10 -0.12 0.32 -13.38 S.Korea +0.45 -3.19 0.79 10.29 Singapore +0.02 -0.47 0.49 10.38 Taiwan +0.36 +2.27 1.69 12.77 Thailand +0.06 -4.37 0.74 7.87 (Editing by Shri Navaratnam)