* Taiwan stocks hit fresh all time high
* Malaysian ringgit touches 1-month high
* China parliament annual meeting in focus

By John Biju
       March 4 (Reuters) - Most Asian currencies and stocks
were up on Monday, as investors looked ahead to key inflation
data, central bank meetings as well as an annual gathering of
China's parliament this week. 
     Optimism over AI-linked industries that has swept up global
markets in recent weeks drove shares in Taiwan up 2.1%
to an all-time high and South Korea 1.1% higher. 
    In currencies, the Philippine peso and Taiwan dollar
 edged 0.2% higher.  
    Market participants are looking out for any policy signals
from an annual meeting of China's parliament beginning on
Tuesday where it is expected to unveil moderate stimulus plans
to stabilise growth. 
    "The market could become more optimistic about China's
economic recovery if the government does emphasize that it will
continue to stimulate the economy," Poon Panichpibool, a markets
strategist at Krung Thai Bank said. 
    "If the government maintains an ambitious growth target, it
could show that it will do whatever it takes to achieve such
goals which could be quite positive for the market at least in
the near term."
    A string of recent data has pointed to a challenging
economic outlook for Southeast Asia's largest trading partner,
adding pressure for policymakers to roll out fresh stimulus
measures. 
    The country's inflation data for February due later this
week is also being keenly awaited by investors after a steep
fall in consumer prices in January reignited deflationary
concerns. 
    The Chinese yuan was largely flat while equities
 edged 0.2% higher.  
    Elsewhere, Bank Negara Malaysia will announce its interest
rate decision later this week where analysts expect the central
bank to stay on hold. 
    The Malaysian ringgit jumped as much as 0.6% to hit
its highest level in a month. The currency has been recovering
losses but is still down 2.9% for this year, having slumped to
its lowest level since 1998 on Feb. 21.  
    A slew of inflation data from Thailand, Philippines and
South Korea are also on investor's radar this week. 
    Vishnu Varathan, head of economics and strategy for Asia at
Mizuho Bank, wrote that headline deflation for February is
likely to persist in Thailand. 
    However, "deflation remains no cause for the BoT (Bank of
Thailand) to ease with the Governor re-iterating that rate cuts
are no panacea for the economy's structural woes."
    Thailand's headline inflation had fallen for a fourth
consecutive month in January.  
    Other potential market movers this week include U.S.
manufacturing and services ISM readings and monthly payrolls
figures.
    
    HIGHLIGHTS:    
    ** Japan's Nikkei breaches 40,000 level for first time as
tech stocks soar
    ** S.Korea factory activity extends gains but demand slows -
PMI
    ** Thailand's employment rises in Q4 on increased tourism
    
    
  Asia stock indexes and                             
 currencies at 0347 GMT                         
 COUNTRY  FX RIC        FX     FX  INDE  STOCK  STOCK
                     DAILY  YTD %     X      S  S YTD
                         %               DAILY      %
                                             %  
 Japan               -0.03  -6.05  <.N2  0.61   19.99
                                   25>          
 China                           EC>          
 India               +0.04  +0.41  <.NS   0.00   2.98
                                   EI>          
 Indones             -0.06  -1.97  <.JK   0.06   0.60
 ia                                SE>          
 Malaysi             +0.36  -2.88  <.KL   0.43   6.18
 a                                 SE>          
 Philipp             +0.21  -1.06  <.PS   0.39   7.70
 ines                              I>           
 S.Korea                         11>          
 Singapo             +0.03  -1.83  <.ST  -0.33  -3.54
 re                                I>           
 Taiwan              +0.23  -2.53  <.TW   2.05   7.77
                                   II>          
 Thailan             +0.06  -4.62  <.SE  -0.17  -3.58
 d                                 TI>          
 

    
 (Reporting by John Biju in Bengaluru
Editing by Shri Navaratnam)