** South Korea minister says Trump appears to be pressuring Seoul over Iran, investment
** Thai industrial sentiment rises for a second straight month in July
** Bolivia lawmakers likely force economy minister's removal in setback for President Paz
Fed minutes, Indonesia rates and South Africa inflation in focus
Investors also awaited minutes of the Federal Reserve's July policy meeting in which it left interest rates unchanged. Chair Kevin Warsh had unsettled markets by offering few clues on whether, or how, policymakers could respond to persistent inflation.
"The July FOMC meeting marked a clear turning point, and the unwind in 'dollar exceptionalism' is now proving equally sharp," said Geoff Yu, senior EMEA market strategist at BNY, adding that a weakening dollar could create a feedback loop by raising pass-through inflation risks.
In Indonesia, the central bank left interest rates unchanged for a second consecutive meeting, seeking to support the rupiah.
"Ensuring the stability of the rupiah forms a key component of Bank Indonesia's mandate and the currency's recent performance will have comforted officials," said Jason Tuvey, deputy chief emerging markets economist at Capital Economics.
"We think Bank Indonesia will keep monetary policy settings unchanged for at least the remainder of this year."
The rupiah IDR= gained 0.1%, bringing its year-to-date rise to about 7%. Indonesian stocks .JKSE, down about 26% so far this year, fell 0.7%.
South Africa's headline consumer inflation slowed to 4.3% year-on-year in July from 5.0% in June, below expectations for a 4.5% reading. The rand ZAR=D3 rose 0.4%, while the benchmark JSE Top 40 index .JTOPI was flat.
Asian markets lead declines while currencies gain on weaker dollar
South Korean stocks led the decline, with the KOSPI .KS11 dropping nearly 6% in its biggest one-day fall in three weeks. China's blue-chip CSI300 Index .CSI300 lost 2.9%, while the Shanghai Composite .SSEC fell 2.4%.
The broader weakness formed a backdrop to Unitree 688836.SS, China's best-known humanoid robot maker, surging more than five-fold in its Shanghai debut. The listing is a significant moment for China's robotics industry, which has become a key front in Sino-U.S. technology rivalry.
Emerging-market currencies advanced as the dollar index =USD traded near multi-month lows and U.S. Treasury yields eased from recent highs. The South Korean won KRW=KFTC gained 1.2%, while the Chinese yuan CNY=CFXS added 0.1%.
Emerging-market equities fall as Middle East tensions weigh on risk appetite
Losses in emerging-market stocks deepened on Wednesday as efforts to resolve the Middle East conflict hit a stalemate, sending oil prices higher and curbing investor appetite for risk.
The MSCI index of emerging-market equities .MSCIEF fell 1.8%. Its currency counterpart .MIEM00000CUS edged up 0.2%, paring some gains after touching a record high earlier in the session.
U.S. President Donald Trump said on Tuesday that no talks with Iran were taking place and insisted the Strait of Hormuz remained open, contradicting Tehran's assertion that the vital shipping route was shut.
The diminished prospect of a deal to end the nearly six-month conflict pushed up oil prices, reviving concerns over longer-term inflation and fiscal consequences. Market borrowing costs in major economies, including the U.S., climbed to multi-decade highs on Tuesday. While bond markets steadied somewhat on Wednesday, a sell-off in equities continued.
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