* South Korean stocks hit highest since Jan 2022
* Taiwan stocks climb to record high
* Inflation data from Taiwan, Thailand due later in the day

By Ayushman Ojha
       July 5 (Reuters) - Most Asian currencies inched higher
on Friday versus a weaker dollar, while stock markets were set
for weekly gains as soft U.S. labour market data buoyed
expectations of interest rate cuts by the Federal Reserve later
this year.
    The South Korean won strengthened 0.2% and the
Singapore dollar inched 0.1% higher.
    Both the Indonesian rupiah and the Taiwanese dollar
edged up 0.1%. 
    The Philippine peso was largely flat after data
showed the country's annual inflation eased in June for the
first time in five months.
    "Today's print gives us more confidence that the Bangko
Sentral ng Pilipinas (BSP) will likely start easing from
August," Barclays analysts said.
    The peso would be a key factor to watch when gauging whether
or not the BSP has the ability to ease rates ahead of the U.S.
Fed, without spurring unwanted currency depreciation, analysts
at ING said.
    Market focus will shift to inflation prints from Taiwan and
Thailand later in the day, though Bank of Thailand Chief
Sethaput Suthiwartnarueput said there is no need to cut interest
rates despite the country's slow economic recovery. 
    The government has been at loggerheads with the central bank
for months over interest rates, with Thailand Prime Minister
Srettha Thavisin calling for a rate cut to kick-start the
economy.
    The baht was 0.1% higher, but has fallen 7.2% so
far this year, while Thai stocks have lost nearly 8% in
2024.
    Most equities in the region were trading higher amid the
prospect of U.S. rate cuts for September. Investors now await
payrolls data, due later in the day, to further assess the rate
outlook.
    Traders are now pricing in a 73% chance of a cut in
September, up from about 66% a week earlier, according to the
CME's FedWatch tool.
    South Korean stocks led the gains amid emerging
Asian equities, rising as much as 1.7% to their highest levels
since January 2022. 
    The benchmark index was lifted by upbeat performance in
Samsung Electronics after the multi-national
electronics company estimated a more than 15-fold rise in its
second-quarter operating profit.
    Stocks in Indonesia gained 0.8% and were set for a
2.7% weekly rise, while Taiwan equities climbed 0.5% to scale a
record high.
    Manila shares were up 0.4% after the release of the
inflation data, while Singapore stocks fell nearly 1%,
but poised for their best weekly gain since April 22.
    Traders will be on the lookout next week for policy rate
decisions in South Korea and Malaysia, as well as China's June
inflation print and Singapore's first-quarter economic growth
estimates.

    
    HIGHLIGHTS:    
    ** Japan household spending unexpectedly falls, clouds BOJ
rate path
    ** China's central bank has hundreds of billions of yuan of
bonds at its disposal to cool long rally
    ** Indonesia budget committee to give widest room possible
to next government
    
    
  Asia                                                  
  stock                                            
 indexes                                           
   and                                             
 currenc                                           
 ies at                                            
  0522                                             
   GMT                                             
 COUNTRY  FX RIC        FX     FX    INDEX  STOCK  STOCK
                     DAILY  YTD %               S  S YTD
                         %                  DAILY      %
                                                %  
 Japan               +0.32  -12.2           -0.15  22.08
                                4                  
 China                                           
 India               +0.01  -0.33           -0.26  11.54
 Indones             +0.12  -5.58            0.42  -0.30
 ia                                                
 Malaysi             +0.02  -2.46           -0.14  10.98
 a                                                 
 Philipp             -0.04  -5.42            0.43   1.32
 ines                                              
 S.Korea                                         
 Singapo             +0.10  -2.31           -0.82   5.29
 re                                                
 Taiwan              +0.08  -5.29            0.13  31.36
 Thailan             +0.07  -6.59            0.24  -7.89
 d                                                 
 

    
 (Reporting by Ayushman Ojha in Bengaluru; Editing by Sherry
Jacob-Phillips)