EMERGING MARKETS-Asia stocks mixed, currencies steady as markets eye Fed, Ukraine summit

By Roshan Thomas

Aug 19 (Reuters) - Emerging Asian stocks were mixed on Tuesday, while most currencies held steady, as investors looked to a pivotal Federal Reserve meeting and developments from a White House summit with European leaders that could shape the Ukraine war.

Stocks in Philippines .PSI and South Korea .KS11 dropped 0.8% and 0.4%, respectively while shares in Taiwan .TWII shed 0.3%. On the other end, equities in Singapore .STI and Malaysia .KLSE both gained 0.6%.

Poon Panichpibool, markets strategist at Krung Thai Bank, said Asian equities were largely mixed as investors awaited outcome from the Jackson Hole symposium for further hints on the U.S. interest rate trajectory.

He added that markets were also booking profits after strong gains in recent months, trimming exposure ahead of clearer signals on potential Fed rate cuts.

The Federal Reserve's annual symposium through August 21–23 is in focus, with Chair Jerome Powell due to speak on economic outlook and the central bank's policy framework.

"Powell will likely calibrate his message, keeping the door open for an insurance cut to avert a sharper deterioration in the labour market, while cautioning against excessive or rapid rate cuts that may undermine the need for vigilance against tariff-induced inflation," analysts at DBS said in a note.

"Markets will also scrutinize how far U.S. President Donald Trump has tilted the Fed's internal balance away from Powell’s cautious stance," the note added.

The cautious mood ahead of the event kept the dollar index =USD steady, while markets also awaited developments following a White House summit with European nations that could shape the next phase of the war in Ukraine.

Asian currencies were largely muted against a steady dollar. Philippines' peso PHP= inched 0.2% lower while the Taiwanese dollar TWD=TP lost 0.1%. Other currencies in the region were largely flat.

Meanwhile in Indonesia, the rupiah IDR= dropped 0.5% as markets reopened after a long weekend, with investors awaiting Bank Indonesia's policy decision on August 20. The benchmark stock index .JKSE edged 0.1% lower.

The central bank is expected to pause its easing cycle on Wednesday to gauge the impact of earlier rate cuts, as inflation has picked up and economic momentum stayed solid last quarter, a Reuters poll showed.

"The fiscal authorities are looking to improve budget disbursement and implement another stimulus package but the risk of revenues undershooting targets poses a constraint," analysts at Nomura said in a note.

HIGHLIGHTS:

** Malaysia's July exports jump 6.8% y/y, much stronger than market forecast

** India, China envoys discuss border peace, trade to boost cooperation