EMERGING MARKETS-Asian currencies rise on subdued US dollar; stocks mixed

By Roshan Thomas

June 30 (Reuters) - Asian currencies inched higher on Monday, with many recording monthly gains, while equity markets were mixed, topping off a month marked by geopolitical uncertainty and the revival of U.S.-China trade talks and a weaker U.S. dollar.

The U.S. dollar =USD wallowed near its lowest in nearly four years against the euro on Monday as market optimism over U.S. trade deals bolstered bets for earlier Federal Reserve interest rate cuts.

Investors are also keeping an eye on U.S. President Donald Trump's massive tax-cut and spending bill, which is currently before the Senate.

Among currencies which were higher, the Malaysian ringgit MYR= and the Philippine peso PHP= were up 0.3% and 0.4%, respectively. The Singapore dollar SGD= and the Thai baht THB=TH both inched up 0.1%, while the South Korean won KRW=KFTC advanced 0.4%.

The Taiwan dollar TWD=TP edged lower, however.

June gave investors a lot to chew on. The U.S. and China sent delegates to Geneva to revive a trade truce, tensions flared up in the Middle East that threw oil prices into a frenzy, and uncertainty around the Fed's independence was rife.

Against this backdrop, the won and Taiwan dollar stood out as the region's top performers.

The won rose nearly 2% in June and is up 7% so far this year, putting it on track for its best half since late 2020, while the equity benchmark .KS11 added 0.8% on Monday and was set for its strongest half-year since the latter half of 2020.

South Korean equities have largely rallied this month as tech stocks advanced on policy optimism under President Lee Jae Myung, who won a snap election on June 3.

The Taiwan dollar was set for its best half-year ever, buoyed this month by expectations of Fed rate cuts, a softer U.S. dollar, and steady foreign capital inflows into the island. Stocks .TWII were down 0.7% on the day.

"Markets still hold (a) long position on these currencies as they expect them to be a part of the trade agreement between the U.S. and Taiwan, and the U.S. and South Korea," said Poon Panichpibool, a market strategist at Krung Thai Bank.

Asian currencies have largely held up in the first half of the year despite global headwinds, and Poon expected them to remain resilient in the second half, with the possibility that some central banks could cut interest rates if trade tensions continue to diminish.

Elsewhere in the region, stock markets were mixed with Indonesian stocks .JKSE and Philippines shares .PSI inching 0.2% and 0.4% higher, respectively.

Investors now await inflation data from the Philippines and Indonesia due later this week, while markets are also tracking progress on trade talks ahead of the July 9 deadline for Trump's reciprocal tariffs.

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