EMERGING MARKETS-Asian markets slide as Trump warns of more Iran strikes

By Sneha Kumar

April 2 (Reuters) - Emerging Asian equities and currencies tumbled on Thursday, as investors exited risk assets after U.S. President Donald Trump threatened more aggressive attacks on Iran and squashed market hopes for a swift end to the Middle East conflict.

The MSCI gauge of EM Asia equities .MIMS00000PUS stumbled nearly 3%, while the currency index .MIEM00000CUS eased 0.2%. South Korea's KOSPI index .KS11 plunged as much as 5.6% after rising 1.8% earlier in the day.

In a prime-time address, Trump said the U.S. military had nearly accomplished its goals in Iran, but offered no clear timeline for ending the month-long war and vowed to bomb the country back into the "Stone Ages."

"The statement led caution to set in again as Trump doubled down on his stance, without providing clarity on any potential signs of resolution," said Lavanya Venkateswaran, senior ASEAN economist, OCBC.

"The conflict is not ending in the near term and that real economic pressures continue to build."

Shares in Singapore .STI and Malaysia .KLSE slipped about 1% each, while Indonesia's Jakarta Composite Index .JKSE declined 1.6%.

Among currencies, the Philippine peso PHP= slipped to 60.655 per U.S. dollar, shy of its record low of 60.814 touched earlier this week.

MUFG analysts said in a note that the Philippines, like its neighbours, isn't just bracing for pricier oil from the Strait of Hormuz crisis, but could soon be facing an energy shortage too.

The USD-PHP pair could rise further above the 61 level if the Middle East conflict continues and the Strait of Hormuz remains closed, they said.

Before the Philippine central bank meets later this month, the March inflation numbers due next week will shed some light on just how well the economy is holding up.

Most Southeast Asian countries rely heavily on oil imports, leaving them especially exposed to the sharp rise in oil prices triggered by the Middle East war.

Higher energy costs risk widening trade deficits, slowing growth, and stoking inflation, while prolonged supply-chain disruptions could critically drain national energy reserves.

Elsewhere, the South Korean won KRW=KFTC, which has been the region's most battered currency this year, dipped 0.2%. The Taiwan dollar TWD=TP edged lower.

Indonesia's rupiah IDR= depreciated 0.3%, erasing the marginal gains made in the previous session amid persistent investor concerns over the country's fiscal deficit, central bank autonomy and governance issues.

The Indian rupee INR=IN jumped almost 2% to a near two-week high of 93.035 against the U.S. dollar, after the central bank imposed curbs on speculative activity.

The Philippine stock market was closed for a holiday.

HIGHLIGHTS:

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Yield on Indonesia's 10-year bonds ID10YT=RR rises to 6.708%

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