* South Korean won, Taiwan dollar lead gains
* Taiwan stocks close at record high
* China industrial profits rise

By Archishma Iyer
       May 27 (Reuters) - Most Asian currencies started the week on a positive
note, with the South Korean won and the Taiwan dollar leading gains, while
investors in regional stock markets maintained a cautious stance for more cues
on global rates outlook.
    Public holidays in the United States and the UK led to lacklustre trading
across global markets on Monday. 
    Data on U.S. personal consumption expenditures on Friday will be critical
for investors, which will give them an idea of whether the Federal Reserve will
be able to lower borrowing costs.
    Most central banks in Asia have so far maintained a wait-and-watch mood,
keeping the U.S central bank's moves in focus, thought it seems unlikely that
the Federal Reserve will cut rates anytime soon.
    Traders are pricing in 50% chance of a rate cut in September with markets
anticipating 33 basis points of cuts this year.         
    Last week, central banks in Indonesia and South Korea kept policy rates
unchanged, while the Philippines finance secretary said earlier on Monday that
the central bank may cut interest rates by up to 150 basis points in the next
two years. 
    "Assuming the U.S. may not act anytime soon, then Europe will probably act
first, I think for a lot of central banks especially in Asia, capital outflows
can be a problem if the yield differentials remain wide," said Gary Ng, a senior
economist from Natixis.
    The dollar index, which measures the strength of the greenback
against six major rivals, was marginally lower at 104.69, as of 0700 GMT.
    "Since USD outperformance is likely to resume, the relief on EM FX may only
be temporary. Amid this flux, central banks in the region remain in a
wait-and-see mode, keeping policy rates unchanged," Barclays analysts wrote.   
    In Asia, the South Korean won and the Taiwan dollar were
the top gainers for the day, rising about 0.4% and 0.3%, respectively.
    Other currencies such as the Malaysian ringgit, Philippine peso
, Thailand baht and the Indian rupee traded between flat
and 0.2% higher. 
    The Philippines hinted that it is closely monitoring developments in the
foreign exchange market. 
    The Indonesian rupiah emerged as the sole outlier with a 0.5% drop.  
    Among Asian stocks, Kuala Lumpur, Singapore and Seoul
rose between 0.1% and 1.3%, while those in Manila and Jakarta
lost about 1% and 0.1%, respectively. 
    Taipei stocks closed at a record high due to a tech rally in the
U.S., spearheaded by chip giant Nvidia. 
    The stock index has gained 21.6% on a year-to-date basis, emerging as the
best performer in Asia Pacific.   
    In China, official data showed industrial profits in Asia's largest economy
in the first four months of 2024 rose 4.3% from the same period last year.    

    ** Indonesia's benchmark 10-year bond yield rises to 6.899% 
    ** Japan at G7 meet renews push to keep yen bears in check
    ** S.Korea system to detect short-selling to be ready Q1 2025, watchdog says
    ** Thailand's 2024 budget increase plan to go to cabinet Tuesday, Budget
Bureau says
 Asia stock indexes and currencies at 0700 GMT
                          DAILY        %             DAILY  S YTD
                              %                          %      %
 Japan                    +0.11   -10.05             0.66   16.24
 China                    -0.01    -2.02              1.01   4.88
 India                    +0.04    +0.17              0.48   6.15
 Indonesia                -0.47    -4.17             -0.11  -0.80
 Malaysia                 +0.13    -2.42              0.00  11.33
 Philippines              +0.21    -4.60             -0.97   1.63
 S.Korea                  +0.42    -5.56              1.32   2.55
 Singapore                +0.01    -2.24              0.08   2.44
 Taiwan                   +0.27    -4.47              1.11  21.60
 Thailand                 +0.19    -6.56              0.05  -3.58

 (Reporting by Archishma Iyer in Bengaluru; Editing by Christian Schmollinger
and Sherry Jacob-Phillips)