Asian stocks climb, FX steady as US-China trade talks set to continue

• MSCI Asia ex-Japan index hits highest level since January 2022
• Taiwan stocks jump over 2% to a two-week high
• US-China talks to continue on Tuesday

June 10 (Reuters) - Stock markets in Asia climbed on Tuesday and regional currencies were little changed against a steady U.S. dollar, as investors monitored the second day of trade negotiations between the United States and China.

Representatives from Beijing and Washington met in London on Monday just days after U.S. President Donald Trump and Chinese leader Xi Jinping held their first post-inauguration call to address an escalating trade dispute.

Trump said he had received "good reports" from officials engaged the talks, which are expected to extend into Tuesday.

"The response in markets today though look mixed," Maybank analysts said in a research note, adding that they would continue to monitor the situation.

MSCI's broadest index of Asia Pacific shares outside Japan .MIAPJ0000PUS rose as much as 0.7% to its highest level since January 21, 2022.

DBS analysts said that the second day of trade talks might see the U.S. relaxing restrictions on tech exports in exchange for China resuming rare-earths mineral shipments.

The tech-heavy Taiwanese index .TWII jumped 2.1% to a two-week high, with chip giant TSMC 2330.TW surging 4%.

South Korean .KS11 equities rose 0.3% and Indonesian shares .JKSE gained 1.2%.

Malaysian stocks .KLSE added 0.1%. Analysts at United Overseas Bank noted that the country's foreign portfolio inflows in May hit their highest level since March 2016 as signs of tariff de-escalation improved risk appetite.

Regional currencies were largely unchanged. The absence of concrete outcomes from Monday's discussions between the world's two largest economies kept currency markets subdued, with traders hesitant to take on big positions.

The Malaysian ringgit MYR=, Singapore dollar SGD= each inched 0.1% lower, while the Taiwanese dollar TWD=TP and Thai baht THB=TH edged 0.1% higher.

The South Korean won KRW=KFTC fell 0.5%.

The U.S. dollar index =USD was up 0.2% as investors awaited U.S. inflation data which is due on Wednesday.

The inflation report is among the final key data points ahead of the U.S. Federal Reserve's June 17-18 meeting, where it is widely expected to keep rates unchanged.

HIGHLIGHTS:

** Taiwan May exports hit record on AI demand and ahead of U.S. tariffs

** Investors eye Latin America as they diversify away from Wall Street

** India May inflation likely cooled to 3% as food price pressure eases