EMERGING MARKETS-Philippine peso reverses losses as cenbank signals pause on rate cuts

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By Shivangi Lahiri

Dec 11 (Reuters) - The Philippine peso reversed earlier losses and shares extended gains after the central bank signalled it was done easing for the near term, while other regional assets were mixed as markets parsed dovish comments by Federal Reserve Chair Jerome Powell.

The Philippine peso PHP= inched higher 0.1% after the announcement, while stocks .PSI were up 0.5%.

The Bangko Sentral ng Pilipinas (BSP) cut its key policy rate for the fifth straight time by 25 basis points to a three-year low of 4.50%.

"On balance, the Monetary Board sees the monetary policy easing cycle nearing its end," the central bank said in a statement, adding that any further easing would be limited and guided by incoming data.

The peso may see mild, temporary pressure from easier policy, but with inflation deeply anchored and the Fed already cutting rates last night, the relative rate differential isn't as punitive as before, said Mohit Mirpuri, a fund manager at SGMC Capital.

OCBC's senior ASEAN economist Lavanya Venkateswaran foresees a prolonged pause in the BSP easing cycle, with no further cuts expected in 2026.

Elsewhere, stocks in Jakarta .JKSE were trading down 0.5% after touching a record high earlier in the day, while equities in Singapore .STI and Kuala Lumpur .KLSE rose 0.4% and 0.6%, respectively.

Stocks in Seoul .KS11 and Taipei .TWII declined 0.6% and 1.3%, respectively, after cloud computing giant Oracle's ORCL.N disappointing earnings sounded a warning for AI profitability, triggering a pullback in the two tech-heavy Asian indexes.

Among currencies in the region, Malaysia's ringgit MYR= rose 0.3% after three straight sessions of losses, while the Singapore dollar SGD= was marginally lower against a weaker U.S. dollar.

The greenback was on the back foot after the Fed's 25-basis-point rate cut and Powell's comments at his post-meeting press conference were perceived as less hawkish than expected, firming bets of two more rate cuts next year.

Steven Dooley, head of market insights at Convera, said rising odds of a rate cut in early 2026 would boost global liquidity and help emerging Asian assets "play catch-up".

Stocks in Thailand .SETI were down 1.2% as trading resumed after a holiday on Wednesday, while the baht THB=TH was flat.

Fighting between Thailand and Cambodia entered its fourth day as both sides waited for a promised telephone call from U.S. President Donald Trump.

($1 = 4.1050 ringgit)

HIGHLIGHTS:

** Japan's government reportedly plans new tax breaks despite debt concerns

** Mexico's Senate passes tariff hikes on Chinese, other Asian imports

** Hong Kong central bank cuts interest rate, tracking Fed move

** China warns Mexico's new tariffs will hurt trade partners

(Reporting by Shivangi Lahiri in Bengaluru; Editing by Subhranshu Sahu)

((shivangi.lahiri@thomsonreuters.com))