* Taiwan dollar marks best day so far this year
* Taiwan stocks surge more than 2%
* Most Asian currencies set to end the week in red
* Malaysia Q4 GDP +3.4% y/y - estimates

By Sameer Manekar
       Jan 19 (Reuters) - Taiwanese stocks got a boost from a
risk-on rally in the world's largest contract maker TSMC on
Friday, while the Taiwan dollar gained as investor focus shifted
away from post-election turbulence.
    Most other emerging Asian currencies clocked modest gains on
Friday, but were however set to end the week on a sour note as
traders rolled back their bets of an interest rate cut by the
U.S. Federal Reserve in March, helping the dollar strengthen.
    The Taiwan dollar appreciated 0.4% to mark its
biggest daily gain since late December, while the main stocks
index surged more than 2% to clock their best day since
early November, fuelled by a 6% jump in Taiwan Semiconductor
Manufacturing (TSMC) shares after a bullish outlook.
    The Taiwan dollar, however, was on track to pencil in a near
1% loss over the week, its third consecutive week in the red, as
post-election turbulence and geopolitical tensions with China
pressured the currency earlier in the week.
    "Anxiety regarding Northeast Asia geopolitical risks should
ease to the relief of the TWD (Taiwan dollar), as China’s
reaction to the Taiwan election result has been measured,"
analysts at Bank of Singapore said.
    "The market is likely to shift focus back to fundamental
factors of a better semiconductor industry outlook and lower
global yields, which is more likely to increase foreign flows
and be supportive for the TWD over the medium term."
    Elsewhere in emerging Asia, the South Korean won
firmed up to 0.5%, although for the week it was set to end 1.8%
lower. Stocks in Seoul gained as much as 1.6% for the
day, but were on track for their third straight weekly loss of
more than 2%.
    In Singapore, the dollar ticked higher while shares
 advanced 0.5%. Investors are now awaiting the Monetary
Authority of Singapore's first meeting of the year later this
month, where the market widely expects it will keep its monetary
settings unchanged.
    Analysts at Maybank remain positive on the Singapore dollar
in the medium-term, but added that the currency performance
could "taper" as Fed begins to cut rates.
    Other regional currencies such as the Indonesian rupiah
, Thai baht, Malaysian ringgit, and the
Indian rupee treaded water without direction. However,
all currencies were poised to end the week in the red.
    Equities in Thailand, Malaysia, and India
 advanced between 0.4% and 0.7%, while those in Indonesia
 ticked lower.
    Meanwhile, advance estimates showed the Malaysian economy
likely grew faster in the December quarter than the prior three
months, with the annual growth expected to come in at 3.8%,
below the government's projection of a 4% expansion.
    Next week, Bank Negara Malaysia will meet for the first time
this year to deliberate on monetary policy. Analysts widely
expect the central bank to leave its policy rate unchanged.
    
    HIGHLIGHTS:    
    ** Indonesian 10-year benchmark yields slips 4.7 basis
points to 6.626%
    ** Effect of the Philippine c.bank's rate hikes since 2022
"quite significant" - senior c.bank official
    ** Thai PM: 'digital wallet' handout scheme may be delayed
    ** China's Shanghai Composite Index down 0.5%
    
 Asia stock indexes and                              
 currencies at 0432 GMT                         
 COUNTRY  FX RIC        FX     FX  INDE  STOCK  STOCK
                     DAILY  YTD %     X      S  S YTD
                         %               DAILY      %
                                             %  
 Japan               -0.10  -4.88  <.N2  1.13   7.19
                                   25>          
 China                           EC>          
 India               -0.02  +0.08  <.NS   0.77  -0.48
                                   EI>          
 Indones             -0.06  -1.47  <.JK   0.15  -0.13
 ia                                SE>          
 Malaysi             +0.02  -2.65  <.KL   0.28   1.97
 a                                 SE>          
 Philipp             -0.20  -0.99  <.PS  -0.09   0.85
 ines                              I>           
 S.Korea                         11>          
 Singapo             +0.14  -1.70  <.ST   0.32  -2.79
 re                                I>           
 Taiwan              +0.39  -2.26  <.TW   2.44  -1.57
                                   II>          
 Thailan              0.00  -3.90  <.SE   0.66  -2.03
 d                                 TI>          
 

    
 (Reporting by Sameer Manekar in Bengaluru; Editing by Raju
Gopalakrishnan)