EMERGING MARKETS-Stocks gain on some tariff reprieve, currencies firm against soft dollar

By Sameer Manekar

April 15 (Reuters) - Asian emerging market equities climbed for a fourth consecutive session on Tuesday, supported by improved risk sentiment after U.S. President Donald Trump hinted at possible exemptions from auto-related tariffs.

Currencies drifted within narrow ranges against the dollar =USD, which held near a two-year low versus a basket of major peers. Meanwhile, an MSCI index tracking emerging market currencies .MIEM00000CUS hovered at a seven-session high.

An index of stocks in Asian emerging markets .MIMS00000PUS rose marginally to a six-session high, while a gauge of equities in ASEAN countries .MISU00000PUS - dominated by Southeast Asian firms - scaled to a one-week high.

Cautious after recent bouts of volatile trading, investors extended the upbeat start this week as risk sentiment improved on signs of potential tariff exemptions for certain sectors and optimism that punitive levies might be scaled back through negotiations.

Overnight, Trump said he was considering a modification to the 25% tariffs imposed on foreign auto and auto parts imports, sending shares of carmakers such as Toyota 7203.T, Hyundai Motor 005380.KS and its sister firm Kia Corp 000270.KS soaring.

Earlier, the White House exempted certain electronic items from steep tariffs on imports from China but later announced a probe into imports of semiconductors. Trump had earlier warned levies on the sector were likely.

"At this juncture, tariff narrative has turned more constructive, as opposed to chaotic in the last week," analysts at DBS wrote in a note.

"A more organised tariff framework around pharmaceuticals, semiconductors and autos is probably in the works. With more time to adjust supply chains, potential disruptions could be minimised."

South Korea's KOSPI index .KS11 advanced around 1%, led by the automakers, while Taiwan's benchmark .TWII added 1.5%. Contract chipmaker TSMC 2330.TW rebounded 1.5% after a sharp drop the previous day.

In Southeast Asia, Indonesia's benchmark .JKSE soared almost 2% to scale a near three-week high, marking their fourth consecutive session of gains.

Singapore's FTSE Straits Times index .STI advanced more than 1%, consolidating after a sharp 12% decline over the prior two weeks.

Stocks in Malaysia .KLSE and the Philippines .PSI were largely unchanged.

Among regional currencies, Singapore's dollar SGD= edged higher, hovering around a five-month high of 1.3144 per U.S. dollar. Malaysia's ringgit MYR= also appreciated as much as 4.3970 a dollar for the first time in seven weeks.

The Philippine peso PHP= and the Thai baht THB=TH also nudged higher, with the latter also touching its best level in more than seven weeks.

Indonesia's rupiah IDR= slipped marginally to 16,810 per U.S. dollar after three sessions of gains.

"Emerging market currencies can get some pressure from a weaker risk sentiment, although dollar weakness can offset some of the negative impact from this," Maybank analysts said.

HIGHLIGHTS:

Yields on Indonesia's 10-year benchmark bonds ID10YT=RR creep lower to 7.007%

China, Vietnam sign deals as Xi visits Hanoi amid U.S. tariff tensions

Thailand says to discuss tariffs with the United States on April 21

Indonesia, Qatar to create $4 bln joint fund investing in Indonesia