* Philippine Vice President resigns from the cabinet
* Bank Indonesia's rate decision in focus
* South Korean stocks hit over two-year high

By Rajasik  Mukherjee
       June 20 (Reuters) - The Philippine peso and shares
declined on Thursday due to a political turmoil in the country,
after incumbent vice president resigned from the president's
cabinet, while other emerging Asian currencies fell against a
steady dollar. 
    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 0.4%, their lowest level
since May 30. 
    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. 
    "Vice President Sara Duterte has quit from the (Marcos)
government... highlighting signs of rift within the
administration. We continue to keep a close eye on the domestic
political developments," analysts at Maybank said. 
    "We continue to see upside risks to the USD/PHP pair due to
both idiosyncratic and external factors." 
    Duterte will, however, remain the Vice president of the
Philippines. 
    Globally, market participants are awaiting fresh cues on the
Federal Reserve's interest rate trajectory, after the U.S.
central bank signalled only one rate cut in 2024 last week. 
    At 0440 GMT, the dollar index was unmoved at 105.260.
    Other emerging Asian currencies, such as the Singapore
dollar, Malaysian ringgit and Taiwan dollar
 traded flat. 
    In Indonesia, focus will be on the central bank's monetary
policy decision, due later in the day. It is expected to
maintain its key rate, with a depreciating rupiah, which is
currently hovering at four-year lows. 
    The currency lost as much as 0.4%, hitting its lowest
level since April 6, 2020, while stocks rose 0.8%. 
    "The recent underperformance of the Indonesian rupiah has
increased the risk of a BI rate hike. However, the rupiah has
yet to weaken past 16,450 per US dollar....a threshold that we
deem will have made it likely for a policy rate hike at this
meeting," analysts at MUFG wrote in a note. 
    Elsewhere, South Korean shares hit more than
two-year high, boosted by battery maker SK Innovation
, which soared after media reports that it was
pursuing a merger with energy affiliate SK E&S to shore up its
loss-making battery unit. 
    Thai shares fell 0.5%, while Malaysian stocks
 lost as much as 0.6%, set for their fourth consecutive
sessions of losses. Taiwanese stocks, however, rose
0.4%.
    
    HIGHLIGHTS:    
    ** Indonesian 10-year benchmark bond yield rises to 7.135%
    ** Thailand to achieve 3% growth this year, fiscal position
strong, finmin says
    ** Japan's Nikkei falls as heavyweight stocks track European
stocks

    
    
  Asia stock indexes and                              
 currencies at 0440 GMT                         
 COUNTRY  FX RIC        FX     FX  INDE  STOCK  STOCKS
                     DAILY  YTD %     X      S   YTD %
                         %               DAILY  
                                             %  
 Japan               -0.03  -10.7  <.N2  -0.47  +14.8%
                                9  25>     %    
 China                           EC>          
 India               -0.04  -0.34  <.NS  -0.15    8.05
                                   EI>          
 Indones             -0.34  -6.21  <.JK   0.78   -6.79
 ia                                SE>          
 Malaysi             -0.06  -2.51  <.KL  -0.50    9.43
 a                                 SE>          
 Philipp             -0.22  -5.74  <.PS  -0.37   -1.66
 ines                              I>           
 S.Korea                         11>          
 Singapo             -0.05  -2.37  <.ST  -0.28    1.69
 re                                I>           
 Taiwan              +0.03  -4.98  <.TW   0.37   29.92
                                   II>          
 Thailan             -0.03  -6.83  <.SE  -0.51   -8.39
 d                                 TI>          
 


    
 (Reporting by Rajasik Mukherjee in Bengaluru; Editing by Rashmi
Aich)