EMERGING MARKETS-Indonesian rupiah leads Asian currencies higher ahead of U.S. CPI data

(Repeats for Southeast Asia) * Indonesian rupiah firms 0.9% * Equities in the region mixed * China's yuan hovers at 5-month high By Himanshi Akhand Jan 12 (Reuters) - Indonesia's rupiah led gains among emerging Asian currencies on Thursday, ahead of U.S. inflation data that could determine the pace of the Federal Reserve's rate increase path. The rupiah strengthened as much as 0.9% to its highest level in over three months, a day after the country's government said it was reviewing a regulation requiring exporters of natural resources to keep earnings in a special account at domestic banks. The regulation on export earnings has been in place since 2019 as a measure intended to stabilise the rupiah exchange rate. Other regional currencies also firmed, with the South Korean won and the Malaysian ringgit both advancing 0.1%. "Emerging currencies are consolidating before U.S. CPI tonight, so risk positions are more limited in the near term," said Chang Wei Liang, FX and credit strategist at DBS Bank. The U.S. dollar was steady ahead of the closely watched U.S. inflation data out today, which will provide more clarity on how much inflation in the world's largest economy has tamed and on the Federal Reserve's rate increases. "Expectations are for U.S. inflation print to come in lower and demonstrate that inflation could be peaking, building the case for the Fed to downshift rate hikes and provide a little bit of impetus for Asian currency strength against the dollar," Liang added. Thailand's baht appreciated 0.2%. Thai consumer confidence rose for a seventh straight month in December, reaching a 25-month high, boosted by improved economic activity and higher foreign tourist arrivals. Meanwhile, the Philippines' central bank governor said the likelihood of cutting reserve requirements for banks in the first half of year is quite high. The reserve requirement ratio for banks will be reduced when the central bank is no longer under pressure to raise benchmark rates, Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla told ANC news channel. The peso weakened 0.2%, while stocks in Manila rose 0.9%. China's annual consumer inflation rate accelerated in December, driven by rising food prices even as domestic demand wavered amid restrained economic activity during the month. The yuan rose 0.1% and hovered at a five-month high, while stocks in Shanghai fell 0.2%. Equities in the region were mixed. Stocks in Jakarta rose 1%, while those in Thailand and Singapore fell 0.3%. Meanwhile, Japan's yen firmed 0.6% after reports that the Bank of Japan would review the side effects of its monetary easing at next week's policy meetings and may take additional steps to correct distortions in the yield curve. HIGHLIGHTS ** The Bank of Korea will raise interest rates by another quarter percentage point on Friday, a Reuters poll says ** India's inflation data due later today ** The Brazilian real gained 0.5% on Wednesday after a volatile start to the week as supporters of far-right former President Jair Bolsonaro stormed the seats of power in Brasilia on Sunday Asia stock indexes and currencies at 0419 GMT COUNTRY FX RIC FX FX INDE STOCKS STOCKS DAILY % YTD % X DAILY YTD % % Japan +0.61 -0.43 <.N2 0.04 1.38 25> China EC> India -0.12 +1.28 <.NS 0.24 -0.92 EI> Indonesi +0.78 +1.33 <.JK 1.04 -2.89 a SE> Malaysia +0.08 +0.79 <.KL 0.02 -0.49 SE> Philippi -0.22 +0.96 <.PS 0.92 3.11 nes I> S.Korea 11> Singapor +0.02 +0.73 <.ST -0.26 0.36 e I> Taiwan +0.07 +0.96 <.TW -0.06 4.28 II> Thailand +0.16 +3.66 <.SE -0.28 0.74 TI> (Reporting by Himanshi Akhand in Bengaluru)