EMERGING MARKETS-Philippine peso extends gain after central bank unexpectedly holds rates

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By Rishav Chatterjee and Adwitiya Srivastava

Feb 13 (Reuters) - The Philippine peso rose further while stocks held firm, after the central bank left interest rates unchanged on Thursday in a surprise decision.

The Bangko Sentral ng Pilipinas (BSP) held rates steady at 5.75% and said the central bank would consider holding them in the next meeting as well.

The BSP was widely anticipated to deliver a quarter-point rate cut given the country's disappointing economic growth over the last two years.

The peso PHP=, which was up 0.1% before the decision, rose further and was last up 0.3%.

"We are seeing the peso gaining on the back of BSP holding rates today and due to an improvement in regional sentiment," said Lloyd Chan, senior currency analyst at MUFG Bank.

"The BSP has been conveying to markets that it will take a measured approach to monetary easing and today's pause is essentially reflecting that message by the bank."

BSP Governor Eli Remolona said they were not quite comfortable in evaluating the impact of global uncertainties developed over recent changes in trade policies.

The benchmark stock index .PSI held onto its early gains after the BSP decision and was last up 1.1%, led by a 10.7% jump in Jollibee Foods JFC.PS.

Jollibee rose the most since October 2020, after the stock exchange approved the removal of a 40% cap on foreign ownership in the fast-food chain.

Among other currencies, the Thai baht emerged as the major gainer.

Thailand is a major trading hub for gold, and the metal's gains over the past week on concerns of a major global trade war helped offset currency volatility fuelled by U.S. President Donald Trump's tariff plans.

The baht THB=TH gained as much as 0.9% against the U.S. dollar, while the Singapore dollar SGD= and its Taiwanese counterpart TWD=TP were mostly steady.

The South Korean won KRW=KFTC and the Malaysian ringgit MYR= added 0.5% and 0.3%, respectively.

Overnight, data showed U.S. consumer prices rose by the most in nearly 18 months in January, reinforcing the Federal Reserve's message that it was in no hurry to resume easing rates.

Most stock markets in Asia rose on Thursday, as investors looked past the U.S. inflation data and bet on an end to the war in Ukraine after Trump held separate phone calls with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy.

Shares in Seoul .KS11 added 1.4%, while those in Taipei .TWII gained 0.5%.

The Malaysian benchmark index .KLSE and the Indonesian stock market, meanwhile, .JKSE lost 0.5% and 0.8%, respectively.

HIGHLIGHTS:

Thai consumer confidence hits 8-month high in January

Malaysia to target $11.7 billion contribution to GDP from natural gas