* Philippines peso, S.Korean won lead gains
* Taiwan stocks hit another record high
* Sri Lanka central bank holds rates

By Archishma Iyer
       May 28 (Reuters) - The Philippines peso and South Korean
won gained the most among emerging Asian currencies on Tuesday
as the dollar retreated, with investors looking to an inflation
reading for clues on the timing of U.S. rate cuts.
    Investors are focused on the U.S. personal consumption
expenditures reading on Friday during a data-light week. This is
likely to set the path for U.S. interest rates, which Asian
central banks are expected to follow. 
    Markets have significantly pared their bets on the number of
rate cuts, pricing in 34 basis points of cuts compared with 150
bps at the start of the year, due to resilient economic data
from the world's largest economy. The push back in the timing of
rate cuts has hit sentiment for riskier Asian assets. 
    At 0355 GMT, the dollar index, which measures the
strength of the greenback against six major currencies, fell
0.1% to 104.42.  
    "Trading FX has been difficult throughout 2023 and 2024. The
constant disconnect between the wishes of Fed officials, the
expectation of market participations and the realised U.S.
economic data have resulted in the broad dollar to largely
remain range-bound between 100-105," Bank of America analysts
said in a research note. 
    The Philippine peso and South Korean won
led currencies higher, rising 0.4% and 0.6%, respectively.    
    Other currencies such as the Singapore dollar,
Malaysian ringgit and the Taiwan dollar
appreciated up to 0.2%. 
    However, the Indonesian rupiah fell 0.2%, while the
Thailand baht traded flat. 
    Among Asian equities, the Jakarta index advanced as
much as 1.8% to 7,308.14 points, while others such as Singapore
, and Seoul rose 0.4% and 0.1%. 
    Taipei stocks hit yet another all-time high, rising
as much as 0.5% to 21,917.93 points, piggybacking on bullish
sentiment over technology stocks. 
    However, shares in Kuala Lumpur and Manila
fell 0.2% and 0.6%.
    Elsewhere, Sri Lanka's central bank stood pat on interest
rates to keep price pressures in check, with the authorities
looking to boost growth in the debt-laden nation.  
    ** Indonesia's benchmark 10-year bond yield rises to 6.908%
    ** China's premier hails 'new beginning' with US-allied
South Korea, Japan
    ** Business service prices hit fastest annual growth since
March 2015, BOJ says

 Asia stock indexes and currencies at 0355 GMT
                           DAILY        %           DAILY %    YTD %
 Japan                     +0.13    -9.96             -0.22    15.99
 China                     -0.02    -2.05              0.01     5.02
 India                     +0.03    +0.13              0.19     5.73
 Indonesia                 -0.19    -4.32              1.07    -0.27
 Malaysia                  +0.13    -2.11             -0.19    11.03
 Philippines               +0.41    -4.40             -0.61     1.26
 S.Korea                   +0.56    -5.03              0.14     2.69
 Singapore                 +0.19    -2.05              0.39     2.81
 Taiwan                    +0.17    -4.35              0.41    22.10
 Thailand                  -0.01    -6.54             -0.08    -3.57
 (Reporting by Archishma Iyer in Bengaluru; Editing by
Jacqueline Wong)