* Bank of Korea holds benchmark rate at 3.50%
* U.S. Dec inflation data due later in the day
* Manila stocks lead gains in the region

By Echha Jain
       Jan 11 (Reuters) - Most emerging Asian currencies and
equities edged higher on Thursday, with the South Korean won
leading gains among the pack, as traders keenly await U.S.
inflation data for clues on the Federal Reserve's timeline on
monetary policy easing.
    The South Korean won appreciated as much as 0.4%
against the U.S. dollar, while stocks in Seoul edged
higher, after the central bank kept its benchmark rate unchanged
 at 3.5% and hinted it might pivot towards easing along with its
global peers. 
    Min Joo Kang, a senior economist at ING, wrote they expect
the first Bank of Korea rate cut in the second quarter of 2024,
with inflation stabilizing in the 2% range. 
    "The Bank of Korea is not in any hurry to cut rates, but
rising default risks and the potential damage to financial
markets may eventually force their hand," the ING note said.  
    Broader market sentiment was buoyed ahead of key U.S.
inflation data for December due for release later in the day,
where a soft print could lift rate cut bets for March.
Currently, CME's FedWatch Tool is showing a 66% chance of a cut.
    "An upside surprise to the CPI could lift the U.S. dollar as
well as U.S. Treasury yields but we reckon bullish reversals
will not last very long," analysts at Maybank wrote.
    While market continues to expect 150 basis points of cuts by
the Fed by December-end, Maybank analysts remain "cautious of
some fine-tuning of these expectations as the path lower for
inflation may still be bumpy in the coming months".
    A dovish tilt by the U.S. Federal Reserve provides a respite
to Asian central banks, with a downward trend in local inflation
allowing them to begin considering their respective rate cut
trajectories.
    Bank Indonesia (BI) will meet on Jan. 16 to decide on its
benchmark interest rates. Analysts at DBS expect a "calibrated
exit plan" with the central bank "exhibiting a lower urgency to
lower rates to preserve financial stability".
    The Indonesian rupiah and the Thai baht
largely traded flat, while the Philippine peso ticked
higher. 
    Meanwhile, the baht depreciated as much as 0.7% on Wednesday
as Prime Minister Srettha Thavisin raised concerns with Bank of
Thailand governor over high interest rates and economic
conditions in a meeting.
    Galvin Chia, an emerging markets strategist at Natwest,
said, "the tension has the potential to hurt sentiment around
the Thai baht, and may prompt markets to price in lower interest
rates".
    Stock markets in Manila jumped as much as 1.2% and
led gains in the region, while shares in Jakarta added
0.4%. Equities in Bangkok retreated 0.3%. 
    The MSCI Emerging Markets stocks index was up
0.6%, on course to snap a four-day losing streak.
    Markets in Taiwan were trading higher ahead
of a pivotal presidential and parliamentary election on Saturday
that is being closely watched internationally at a time of
heightened tensions with China. 

    HIGHLIGHTS:    
    ** Japan's Nikkei breaks 35,000 for first time since Feb
1990
    ** Malaysia palm output to improve amid better labour
conditions - MPOB
    ** Indonesia raises minimum equity of insurance firms to at
least $16 mln by 2026
    
 Asia stock indexes and                                
 currencies at 0419 GMT                           
 COUNTRY  FX RIC        FX     FX  INDEX  STOCKS  STOCK
                     DAILY  YTD %          DAILY  S YTD
                         %                     %      %
 Japan               +0.29  -2.92  <.N22   1.95   4.92
                                   5>             
 China                           C>             
 India               +0.06  +0.27  <.NSE    0.35  -0.17
                                   I>             
 Indones             +0.02  -1.07  <.JKS    0.38  -0.25
 ia                                E>             
 Malaysi             -0.02  -1.08  <.KLS   -0.15   2.06
 a                                 E>             
 Philipp             +0.23  -1.32  <.PSI    1.04   2.54
 ines                              >              
 S.Korea                         1>             
 Singapo             +0.15  -0.77  <.STI    0.53  -1.35
 re                                >              
 Taiwan              +0.12  -1.18  <.TWI    0.55  -2.06
                                   I>             
 Thailan             +0.04  -2.51  <.SET   -0.32  -0.48
 d                                 I>             
    

    
 (Reporting by Echha Jain in Bengaluru; Editing by Christian
Schmollinger)