* Indonesia rupiah hits lowest since May 2
* Most Asian equities in the red
* U.S. 10-year yield hits multi-week peak

By Archishma Iyer
       May 29 (Reuters) - 
    Most emerging Asian currencies weakened on Wednesday, with
the Philippine peso hitting a 1-1/2-year low, as higher U.S.
Treasury yields lifted the dollar, while investors were wary of
a key inflation reading that could drive global monetary policy.
    The peso fell as much as 0.8% to 58.400 per dollar,
its lowest since Nov. 8, 2022. 
        The peso has depreciated about 1.5% since the Philippine
central bank's last meeting on May 16, when it 
     it could cut interest rates as early as August. 
        The Bangko Sentral ng Pilipinas (BSP) 
     last week that it will intervene in the foreign exchange
market if necessary to stem any volatility. 
        "We stay cautious... being wary of upside risks given
that any Fed easing may be slow as U.S. data may only gradually
cool," Maybank analysts said in a note, adding that the BSP's
dovish tilt is also not helping the peso.
    The Indonesian rupiah fell as much as 0.5%, hitting
its weakest since May 2, while the benchmark 10-year Treasury
yield inched to a two-week high of 6.943%. 
    Other currencies such as the Singapore dollar,
Malaysian ringgit, Taiwan dollar and Thai baht
 traded between flat and down 0.4%. 
    The U.S. personal consumption expenditures reading - the
Federal Reserve's preferred gauge for inflation - will take
center-stage among investors, which is expected to steady on a
monthly basis. The data will influence the Fed's interest rate
    Markets are pricing in about a 45% chance of a 25 basis
points rate cut in September, as compared with 49.4% a week ago,
according to the CME FedWatch tool.  
    The dollar index was at 104.60, above its two-week
low, buoyed by a rise in the 10-year U.S. Treasury yield. The
benchmark yield hit its highest since May 3.
    "USD remains supported by a Fed caution to cut rates too
early. Nevertheless, we continue to see USD as a sell on rally
and think that the other stretched pairs such as USD/KRW or
USD/TWD could be worth looking at," Maybank added. 
    Most Asian equities were trading lower as well. Shares in
Seoul ended down 1.7%, while markets in Jakarta,
Kuala Lumpur, Manila and Bangkok fell
between 0.3% and 1.6%. 
    The chip-heavy Taipei benchmark, which had hit
multiple record highs in the recent past, took a breather during
the day and closed down 0.9%.  

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 Asia stock indexes and currencies at 0645 GMT
 Japan                      +0.01  -10.23                     
                                                    -0.77   15.22
 China                      -0.05   -2.07             0.04   4.57
 India                      -0.18   -0.14            -0.69   4.60
 Indonesia                  -0.48   -4.75            -1.64  -1.90
 Malaysia                   -0.17   -2.34            -0.39  10.64
 Philippines                -0.70   -5.09            -1.14  -0.36
 S.Korea                    -0.48   -5.64            -1.67   0.83
 Singapore                  +0.01   -2.19            -0.05   2.72
 Taiwan                     -0.38   -4.82            -0.90  20.81
 Thailand                   -0.20   -6.79            -0.32  -4.06

 (Reporting by Archishma Iyer in Bengaluru; Editing by
Jacqueline Wong and Eileen Soreng)