EMERGING MARKETS-Asian shares rise, currencies inch lower as U.S.-China trade talks roll into second day

By Roshan Thomas

June 10 (Reuters) - Asian stocks climbed on Tuesday, while regional currencies edged lower against a firmer dollar as investors tracked the second day of high-stakes trade talks between Washington and Beijing.

Representatives from China and the U.S. 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 sentiment across Asian stock markets seems to be lifted by optimism around the U.S.-China trade talks, which is seemingly going smoothly," said Poon Panichpibool, markets strategist at Krung Thai Bank.

"Developments so far suggest that tensions may ease slightly and that there will be no further escalation into a tariff standoff from either side, which is good."

MSCI's broadest index of Asia Pacific shares outside Japan .MIAPJ0000PUS rose as much as 0.8% to its highest level since January 21, 2022.

South Korean .KS11 equities rose 0.6%, and Indonesian shares .JKSE gained 1.5%.

DBS analysts said 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 closed up 2.1% to over a two-month high, with chip giant TSMC 2330.TW jumping 4%.

Malaysian stocks .KLSE added 0.2%. 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 big positions.

"FX markets are largely in consolidation mood, with upticks in USD seen," said Christopher Wong, currency strategist at OCBC.

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 0.9%.

The U.S. dollar index =USD was up 0.4% 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

Indonesia's FX reserves steady at $152.5 bln at end-May