Updates for afternoon trade

By Roshan Thomas

June 23 (Reuters) - Asian stock markets and currencies slid on Monday as fears of an Iranian retaliation following U.S. attack on its nuclear sites sparked a flight to safe-haven assets.

The MSCI's gauge of Asian emerging market equities .MIMS00000PUS fell 0.9%.

Equities in the Philippines .PSI dropped more than 2% and Indonesian shares .JKSE fell 2% to reach a two-month low. Taiwan stocks .TWII fell 1.4%.

Iran vowed to defend itself a day after the U.S. joined Israel in its most significant Western military action against Tehran since 1979, defying global calls for restraint and diplomacy.

The Israeli shekel ILS= was up 1%, its highest since early-February 2023.

"With the prospects of a swift resolution now diminished, investors are likely to reprice risk across markets," said Rong Ren Goh, portfolio manager at Eastspring Investments.

Goh expects to see broad-based weakness across Asian risk assets as markets assess the potential fallout from sustained geopolitical instability and elevated oil prices.

Regional currencies weakened as flight to safety drove investors towards the dollar. Oil prices added to the pressure as most Asian economies import the bulk of their oil requirements and an increase in prices widens their current account deficits.

The Philippine peso PHP= fell 0.7% to hit its lowest level since April 9. Taiwanese dollar TWD=TP and the South Korean won KRW=KFTC shed 0.7% and 0.6%, respectively.

The Indonesian rupiah IDR= fell 0.7% to its lowest since mid-May. A senior official said the country's central bank would continue intervening in currency markets to ensure the rupiah reflects its fundamentals.

The ringgit MYR= also slipped 0.6%, despite Malaysia's position as the only net oil and gas exporter among major emerging Asian economies.

In Thailand, the baht THB=TH dropped 0.5% and stocks .SETI fell as much as 1.3% to their lowest in over five years.

Investors braced for the Bank of Thailand’s policy meeting this week, with the central bank expected to stand pat amid deepening political turmoil and trade uncertainty.

The local political landscape has been fraught after the Bhumjaithai Party exited the ruling coalition last week, prompting other allies to reconsider their support.

Prime Minister Paetongtarn Shinawatra, who is facing growing calls to resign, said on Sunday that all coalition partners had pledged support and vowed to maintain political stability to counter threats to national security.

Meanwhile, the finance minister said Thailand's capital markets remained strong and were well-positioned to withstand volatility stemming from Middle East tensions.

HIGHLIGHTS:

** Singapore's annual core inflation rate stood at 0.6% in May, matching poll forecast

** South Korea's Lee names former UN envoy as new foreign minister

(Reporting by Roshan Thomas in Bengaluru; Editing by Janane Venkatraman and Mrigank Dhaniwala)

((Roshan.Thomas@thomsonreuters.com))