EMERGING MARKETS-Asian FX gains, stocks rally as markets brush off Trump's tariff threats

By Roushni Nair

Aug 7 (Reuters) - Asian currencies firmed and most regional equities rallied on Thursday, as investors appeared to shrug off U.S. President Donald Trump's tariff threats, while expectations of a Federal Reserve rate cut lifted risk appetite and pressured the dollar.

The Taiwan dollar TWD=TP rose as much as 0.6% to a one-week high of 29.808 per U.S. dollar, while the Indonesian rupiah IDR= and the South Korean won KRW=KFTC each added 0.2%, respectively.

Markets largely shook off Trump's latest tariff moves, including an additional 25% tariff on India over purchases of Russian oil and a threatened 100% duty on semiconductor chips.

Most Asian tech heavyweights are expected to be exempt from any U.S. levies on chips if they have made commitments to manufacture in the United States or were in the process of doing so.

Threatened tariffs on pharmaceuticals and technology sectors could provide dollar support this month, even as further greenback weakness is anticipated following the weak payrolls data, warned Jeff Ng, head of Asia macro strategy at Sumitomo Mitsui Banking Corp.

Some markets, however, showed signs of vulnerability to U.S. tariff threats.

Shares in the Philippines .PSI bucked the broader regional trend, slipping nearly 1%, after the president of the Philippine semiconductor industry warned that 100% tariffs on the country's semiconductor exports, if applied, could be "devastating".

Semiconductors comprise 70% of the Philippines' total electronics exports. The peso PHP= remained largely unchanged on Thursday.

Regional equities edged higher elsewhere, with Singapore .STI and South Korea .KS11 adding more than 0.7% each.

Taiwan's benchmark index .TWII surged as much as 2.6% to a more than one-year high of 24,050.54 points, while Thailand's SET index .SETI rose over 1% to a five-month high, marking its fourth consecutive session of gains.

Indian shares .NSEI edged 0.2% lower, while the Indian rupee INR=IN remained largely unchanged.

Among Asian currencies, the Singaporean dollar offers a relatively safer play if dollar weakness materializes, as currencies such as the rupiah remain pressured by tariff threats, while the won and Taiwan dollar face volatility from trade uncertainty, Ng added.

Political uncertainty also weighed on dollar sentiment. Trump said on Tuesday that he will decide on a Fed board nominee this week while narrowing replacements for Fed Chair Jerome Powell to four candidates.

Markets remain most uncertain over China, which faces an August 12 deadline to reach a durable tariff agreement with the U.S. administration.

Without a deal, global supply chains could face renewed turmoil from U.S. duties snapping back to triple-digit levels that would amount to a bilateral trade embargo.

Trump said on Wednesday that he may impose additional tariffs on China, similar to the 25% duties recently announced on India over its purchases of Russian oil, depending on future developments.

HIGHLIGHTS:

** India-U.S. spat over trade and oil threatens wider fallout

** China July coal imports fall 23%