* Philippine Vice President resigns from the cabinet
* Indonesian rupiah unchanged post c.bank decision
* South Korean stocks hit over two-year high

By Rajasik  Mukherjee
       June 20 (Reuters) - The Philippine peso and shares declined on Thursday
due to political turmoil, after the incumbent vice president resigned from the
president's cabinet, while the rupiah was largely unmoved after Bank Indonesia
held interest rates as expected. 
    The peso, which has depreciated around 5.7% this year, lost 0.2%,
eyeing its worst day in nearly three weeks, while stocks shed as much as
0.8% to hit their lowest level since mid-December. 
    Philippine Vice President Sara Duterte left President Ferdinand Marcos Jr's
cabinet and resigned as the education minister and vice chair of an
anti-insurgency task force amid ongoing rumours that the alliance between them
was expected to collapse. Duterte will, however, remain the vice president of
the Philippines.  
    "The soured political relationship between the Marcos and Duterte camps is a
widely accepted reality, and the resignation is an expected offshoot of that,
especially with the midterm elections just around the corner..," said Juan Paolo
Colet, managing director at China Bank Capital in Manila.
    The Philippine central bank attributed peso's fall to the strengthening of
dollar while assuring that it will keep inflation within its target range of
2%-4% through 2025.
        In Indonesia, the central bank held its interest rate at 6.25%, adding
that the current level remained consistent with efforts to stabilise the rupiah
. 
    The currency, which has depreciated over 6% this year and is hovering at a
four-year low, remained largely unchanged following the decision, while stocks
 were up more than 1%.  
    Global market participants are awaiting fresh cues on the Federal Reserve's
interest rate trajectory, after the central bank last week signalled only one
rate cut for 2024. 
    At 0745 GMT, the dollar index was 105.39. 
    Other emerging Asian currencies, such as the Singapore dollar,
Malaysian ringgit and the Thai baht traded flat to marginally
lower. 
    Thai shares fell 0.5%, while Malaysian stocks lost as much
as 0.6%, set for their fourth consecutive sessions of losses. 
    Taiwanese stocks finished 0.9% higher while South Korean shares
 ended 0.4% up, hitting a more than two-year high. 
    
    HIGHLIGHTS:    
    ** Indonesian 10-year benchmark bond yield rises to 7.115%
    ** Thailand to achieve 3% growth this year, fiscal position strong, finmin
says
    ** Pakistan stocks rise 1% to record high on budget, IMF optimism

    
 Asia stock indexes and currencies at 0745 GMT
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    
 Japan                     -0.09   -10.85                       
                                                                
                                                     0.16     15.45
                                                                
                                                                
 China                     -0.04    -2.24             -0.42     1.03
 India                     -0.09    -0.39              0.15     8.37
 Indonesia                 -0.37    -6.24              1.31    -6.29
 Malaysia                  -0.04    -2.49             -0.44     9.50
 Philippines               -0.19    -5.72             -0.34    -1.64
 S.Korea                   -0.20    -6.98              0.37     5.74
 Singapore                 -0.09    -2.40             -0.26     1.70
 Taiwan                    +0.08    -4.94              0.85    30.54
 Thailand                  -0.14    -6.93             -0.50    -8.37
 


    
 (Reporting by Rajasik Mukherjee in Bengaluru; additional Reporting by Mikhail
Flores in Manila; Editing by Rashmi Aich and Mrigank Dhaniwala)