* Malaysian ringgit up 0.5%, Taiwan's dollar adds 0.3%
* Philippine peso rises 0.3%
* U.S. core PCI index data due at 1330 GMT

By Poonam Behura
       Dec 22 (Reuters) - The Malaysian ringgit and Taiwanese
dollar touched multi-month highs on Friday, while most other
regional currencies were set for weekly gains, as investors
continued to bet on prospects of interest rate cuts by the U.S.
Federal Reserve next year.
    The ringgit was up 0.5% at 0232 GMT, touching its
highest level since mid-August. Taiwan's dollar
advanced 0.3% to touch its highest since July 27. 
    The Philippine peso also added 0.3% to touch a
two-week peak, and was set for its best weekly gain since early
November.
    Most currencies in emerging Asia appreciated during the
week, helped by ongoing risk-on sentiment after unusually dovish
remarks from Fed Chair Jerome Powell last week ignited hope of
sizeable rate cuts in 2024.
    Investor focus is now on the U.S. core Personal Consumption
Expenditure (PCE) index for November, due later on Friday, for
more clarity on the Fed's rate-cut timing.
    The Fed-fuelled "risk-on (sentiment) is prompting a softer
U.S. dollar, despite some pick-up in U.S. Treasury yields,"
Mizuho analysts said in a client note.
    The Indonesian rupiah added 0.2%, recuperating from
its slide on Wednesday, while stocks in Jakarta were up
0.4%.
    Indonesia's central bank kept its benchmark interest rate
unchanged at 6.00% on Thursday after its last policy meeting for
the year, echoing status-quo central bank decisions in the
Philippines and Taiwan last week.
    "For the time 'higher for longer' (U.S. rates) remains, Bank
Indonesia too would remain on hold, and the BI would eventually
follow the Fed with a cut, once the Fed does so," said economist
Kunal Kundu at Societe Generale.
    Equities in Singapore surged 0.8% and are set to gain
for a fourth consecutive day. Shares in South Korea and
Philippines advanced 0.4% and 0.3% respectively.
    However, stocks in Thailand fell 0.3%, declining for
a fourth session.   
    Elevated oil prices brought about in part by attacks on Red
Sea shipping continued to be a risk to market confidence in
net-oil importers in emerging Asia such as Thailand, India and
Indonesia. Higher oil prices could induce inflationary pressure
and adversely impact the fiscal health of these countries.
    Next week, investors will be watching for the release of
Singaporean inflation data, South Korean industrial output
figures and Thai trade data.

HIGHLIGHTS:    
    ** Japan's core inflation slows in November, easing pressure
on BOJ
    ** Emerging market debt wall looks scalable as investors
warm to risk
    ** China bans export of rare earths processing tech over
national security
    
  Asia stock indexes and currencies at 0407 GMT
 COUNTRY   FX RIC          FX     FX  INDE  STOCKS  STOCKS
                      DAILY %  YTD %     X   DAILY   YTD %
                                                 %  
 Japan                  -0.26  -7.97  <.N2   0.19   27.24
                                      25>           
 China                               EC>           
 India                  +0.05  -0.62  <.NS    0.04   17.45
                                      EI>           
 Indonesi               +0.16  +0.45  <.JK    0.36    5.62
 a                                    SE>           
 Malaysia               +0.45  -5.01  <.KL   -0.20   -2.86
                                      SE>           
 Philippi               +0.18  +0.47  <.PS    0.27   -1.21
 nes                                  I>            
 S.Korea                             11>           
 Singapor               +0.00  +1.03  <.ST    0.86   -3.44
 e                                    I>            
 Taiwan                 +0.24  -1.60  <.TW    0.18   24.31
                                      II>           
 Thailand               +0.12  -0.27  <.SE   -0.36  -16.11
                                      TI>           
 
    
 (Reporting by Poonam Behura in Bengaluru; Editing by
Christopher Cushing)