EMERGING MARKETS-Stocks in South Korea, Indonesia tank 5%, currencies slide

By Roshan Thomas

Feb 2 (Reuters) - Equities in Indonesia and South Korea slumped 5% on Monday and emerging Asia currencies slipped against the U.S. dollar, as investors evaluated the implications of President Donald Trump's nomination of Kevin Warsh as Federal Reserve chair.

MSCI's global emerging markets index .MSCIEF and its emerging Asia counterpart .MIMS00000PUS declined about 3% each, marking their steepest intra-session losses since late November.

A global EM currencies gauge .MIEM00000CUS was down 0.4% as the U.S. dollar index =USD hung on to its gains from last week.

The week opened on a dismal note, with investors exiting positions after weeks of gains in most equity markets and precious metals, as they assessed Warsh's approach to monetary policy and his preference for a smaller balance sheet.

"Trump's nomination of Kevin Warsh as Jerome Powell's successor to be the next Fed chair provided the trigger that the market needed to unwind extreme positions right at the end of January," Maybank analysts wrote.

"That was such a surprising nomination that markets had an arguably violent reaction of unwinding the (U.S. dollar) debasement narrative."

Among precious metals, spot gold XAU= and silver XAG= prices extended their routs on Monday following increases in CME precious metals margin requirements that are set to take effect at the session's close.

In equities, South Korea's KOSPI index .KS11 retreated 5.6%, dragged lower by blue-chip stocks like Samsung Electronics 005930.KS, SK Hynix 000660.KS and Hyundai Motor 005380.KS. They lost between 5% and 9%.

Stocks in Taiwan .TWII also fell 2.2%, with top contract chipmaker TSMC 2330.TW shedding 1.6%.

Indonesia's Jakarta Composite index .JKSE slumped 5.7%, extending last week's sharp sell-off after an MSCI warning over transparency concerns sparked an $80 billion rout.

Heavy losses in coal miner Dian Swastatika Sentosa DSSA.JK, copper-gold miner Bumi Resources Minerals BRMS.JK and utilities firm Barito Renewables Energy BREN.JK weighed on the benchmark. Those stocks slid between 6% and 15%.

Among currencies, South Korea's won KRW=KFTC slumped over 1%, while the Taiwan dollar TWD=TP fell 0.6%, on track for its worst day since August 21.

Thailand's baht THB=TH slipped 0.5% ahead of the February 8 election, a showdown between three big parties that could lead to the country's fourth prime minister in less than three years.

Bucking the trend, the Indian rupee INR=IN rose 0.4%, supported by likely central bank intervention before the market opens, traders said, after the currency came under pressure following a budget-triggered sell-off in local stocks.

HIGHLIGHTS:

** BOJ debated risk of being 'behind the curve' on inflation, January summary shows

** Indonesian stocks fall after last week's dramatic shake-up, $80 billion rout

** Yield on Indonesia's 10-year government bonds ID10YT=RR at 6.323%

** Markets in Malaysia .KLSE, MYR= closed for a holiday

(Reporting by Roshan Thomas in Bengaluru; Editing by Thomas Derpinghaus)

((Roshan.Thomas@thomsonreuters.com))