* Malaysian ringgit, South Korean won up 0.6% each
* South Korea's stocks surge 1.6%
* EM markets buoyed by rate cut bets

By Poonam Behura
       Dec 20 (Reuters) - Emerging Asian stocks rose on
Wednesday, while the Malaysian ringgit and South Korean won led
modest gains in the region's currencies, reflecting continued
investor confidence in U.S. rate cut prospects next year despite
pushback from some policymakers.
    Shares in Seoul rose about 1.6%, notching their
fifth consecutive session of gains. Equities in Bangkok
and Manila advanced 0.6% and 0.4%, respectively. 
    In currency markets, Malaysia's ringgit rose 0.6% and
hit its highest level in over two weeks. South Korea's won
 also added 0.6%, snapping a three-day losing streak. 
    "There are higher inflows in the Asian assets and the rally
is explained by the ongoing risk-on sentiment as Fed pivot bets
are still on and unfettered," Vishnu Varathan of Mizuho Bank
said.     
    Emerging assets gained ground as investors continued to bet
on rate cuts next year after Federal Reserve Chair Jerome
Powell's unexpected dovish stance last week, defying some recent
pushback from other Fed officials.
    Markets are on the lookout for the U.S core personal
consumption expenditure (PCE) index data due on Friday, which
will set expectations for Fed monetary stance next year. 
    Varathan added that potential risks to market confidence
include surging oil prices because of an escalation in the
Middle Eastern conflict. 
    "The maritime disruptions in the Red Sea after militant
attacks and the war in Gaza could push up freight and oil
prices, taking some froth off (the market rally) at some point."
    The surge in oil prices due to the supply disruption poses a
fresh risk to inflation and fiscal health of net importing
countries like Thailand and India. 
    Thailand's baht was last down 0.4%, while the
Philippine peso and the Taiwanese dollar added 
0.3% and 0.2%, respectively.
    Indonesia's rupiah was largely unchanged while stocks
 rose 0.6%. Bank Indonesia is set to hold its policy
meeting on Thursday, with markets expecting the central bank to
keep rates on hold.
    Meanwhile, in China, the central bank kept its benchmark
lending rates unchanged at the monthly fixing on Wednesday,
in-line with market expectations, amid worries of deflation and
slower economic growth. 
    The Chinese yuan edged 0.2% lower. Shares in
Shanghai also lost about 0.4%.
    
 
    HIGHLIGHTS:    
    ** Japan's exports fall for first time in three months as
China shipments sag
    ** Philippine rates to stay higher for longer to tame
inflation - c.bank chief
    ** Brazil's Congress approves government target to eliminate
primary deficit in 2024

    
  Asia stock indexes and currencies                       
 at 0351 GMT                                        
 COUNTRY   FX RIC          FX     FX  INDE  STOCKS  STOCKS
                      DAILY %  YTD %     X   DAILY   YTD %
                                                 %  
 Japan                  +0.05  -8.79  <.N2   1.74   29.52
                                      25>           
 China                               EC>           
 India                  +0.03  -0.52  <.NS    0.00   18.49
                                      EI>           
 Indonesi               -0.03  +0.39  <.JK    0.59    5.54
 a                                    SE>           
 Malaysia               +0.62  -5.38  <.KL    0.21   -1.79
                                      SE>           
 Philippi               +0.32  -0.18  <.PS    0.38   -0.31
 nes                                  I>            
 S.Korea                             11>           
 Singapor               +0.04  +0.91  <.ST    0.07   -4.08
 e                                    I>            
 Taiwan                 +0.24  -1.84  <.TW    0.27   24.66
                                      II>           
 Thailand               -0.43  -0.99  <.SE    0.63  -15.88
                                      TI>           
 

    
 (Reporting by Poonam Behura in Bengaluru)