EMERGING MARKETS-Asian stocks, currencies gain on China stimulus

By Aaditya GovindRao

March 6 (Reuters) - Most emerging Asian equities and currencies gained on Thursday after China unlocked more fiscal stimulus, while investors held out hopes for a rollback in tariffs after U.S. President Donald Trump exempted some automakers from levies for a month.

The MSCI gauge of emerging market currencies .MIEM00000CUS jumped 0.5%, while a gauge of emerging Asian equities .MIMS00000PUS rose 2.2%.

China, Southeast Asia's biggest trading partner, ramped up its fiscal stimulus on Wednesday and promised greater efforts to support consumption and cushion the impact of an escalating trade war with the U.S. on the economy.

Artificial intelligence was a key focus at the opening of the annual meeting of China's parliament, with promises to foster its application in sectors including electric vehicles, smartphones and robots.

Goldman Sachs analysts raised their target price on emerging markets equities, noting that the AI-driven rally in Chinese stocks could spill over to China-sensitive markets.

"We expect further equity gains as the fiscal stimulus announcement... should continue to stabilise growth and sentiment," the analysts said.

Chinese stocks .SSEC were up 1.2%, while the yuan CNY=CFXS inched 0.1% lower.

Meanwhile, the White House said on Wednesday that it would exempt automakers from Trump's 25% tariffs on Canada and Mexico for one month as long as they comply with existing free trade rules, suggesting there may be room for negotiation in the trade war.

The Mexican peso .MXN edged up 0.1% after a 0.9% jump on Wednesday. The dollar index =USD wallowed near a four-month low. USD/

In Asia, equities in Jakarta .JKSE rose as much as 2.1% to recoup losses from earlier in the week, while Seoul stocks .KS11 gained 0.7%, boosted by automakers. KRW/

Data showed South Korea's consumer inflation softened in February for the first time in four months. Investors will also be on the lookout for inflation data from Thailand and Taiwan on Friday.

The Malaysian ringgit MYR= inched 0.1% higher, while Kuala Lumpur stocks .KLSE extended losses to 0.4%, after the central bank held rates steady, in line with market expectations.

Shares in Manila .PSI rose as much as 2.5% to hit their highest in a month and Singapore stocks .STI gained 0.7% to hover near a record high touched last week.

The Philippine peso PHP= and the South Korean won KRW=KFTC were up 0.3% and 0.5%, respectively.

HIGHLIGHTS:

Malaysia discussing response to U.S. chip tariffs with companies, minister says

U.S. eyes zero tariff on cars in India trade deal as Tesla entry nears, sources say

Indian rupee poised for steeper slide than previously thought