EMERGING MARKETS-South Korea leads Asian stocks higher; Asian FX muted ahead of US inflation data

India's equity benchmark Nifty 50 .NSEI fell 0.7%, with Tata Group stocks among the biggest drags on the benchmark after the resignation of conglomerate Tata Sons' chairman. Tata Consultancy Services TCS.NS, India's largest software exporter, slid 4%. Beyond Asia, Brazilian markets were weighed by a combination of stronger-than-expected inflation, hawkish central bank minutes and a J.P.Morgan downgrade of local equities. The benchmark stock index .BVSP slid 2.5% on Tuesday to its lowest closing level since mid-January, while the real BRL= also came under pressure. HIGHLIGHTS: * Taiwan's Foxconn reports 35% rise in Q2 profit on AI demand, beats forecasts * Bank of Korea likely to raise interest rates further, outgoing deputy chief says * U.S. consumer prices likely increased moderately in July as gasoline prices eased Most Asian stocks gained on Wednesday, led by South Korean equities as solid results for AI-linked U.S. stocks boosted risk plays, while regional currencies were subdued on higher oil prices ahead of key U.S. data. The MSCI EM Asia equity index .MIMS00000PUS rose 1.1% as upbeat capital expenditure plans and forecasts from AI cloud firm CoreWeave CRWV.O and Super Micro Computer SMCI.O bolstered confidence that the AI investment boom still has room to run. Tech-heavy KOSPI .KS11 closed 3.7% higher. Its recent declines into bear market territory marked a steep pullback from AI-related stocks on anxiety surrounding the sustainability of massive capital expenditures. Chipmaker Samsung Electronics 005930.KS closed up 6.7%, and SK Hynix 000660.KS ended 5.5% higher. "Asia is reading the AI story more selectively than Wall Street is," said Dilin Wu, research strategist at Pepperstone. Elsewhere, Jakarta's benchmark .JKSE led gains in Southeast Asia with a 1.2% rise. Stocks in the Philippines .PSI and Malaysia .KLSE followed with gains of 0.6% and 0.3%, respectively. Singapore stocks .STI eased 0.7% after scaling record high levels last session. Currencies, however, remained tepid with soaring oil costs continuing to drag import-reliant economies. The U.S. and Yemen's Iran-aligned Houthis reported separate attacks on shipping, while Asia was rattled by an early morning missile launch by North Korea. The Indonesian rupiah IDR= extended its weakness into another session, shedding as much as 0.3% to trade at 17,885 per U.S. dollar. The Singapore dollar SGD= slipped marginally to 1.2805 per U.S. dollar. The Korean won KRW=KFTC shed 0.3% after its July rally placed it among the region's few year-to-date gainers alongside the Singapore dollar and the Chinese yuan CNY=CFXS. Markets awaited the U.S. inflation report due later in the day, for fresh clues on the Federal Reserve's next move. "If CPI is hot, thin current account buffers and U.S. dollar debt is where the pain lands. Peso and rupiah are most exposed. The won is also vulnerable," said Dilin Wu, research strategist at Pepperstone. Fed funds futures imply even odds of the central bank leaving rates unchanged and a quarter-point increase at its September meeting, according to CME Group's FedWatch tool.

EMERGING MARKETS-South Korea leads Asian stocks higher; Asian FX muted ahead of US inflation data

India and Brazil stocks weaken

Asian stocks rise on AI optimism

Currencies remain tepid ahead of U.S. inflation data

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