By Himanshi Akhand

June 17 (Reuters) - Emerging Asian stock markets were mixed on Tuesday and currencies weakened marginally, pressured by a steady dollar and higher oil prices, as investors focussed on the Middle East conflict and upcoming central bank meetings.

Stocks in Taiwan .TWII and Indonesia rose 0.4% and 0.7%, respectively.

South Korea's benchmark KOSPI index .KS11 reversed course and was last down 0.4%, after rising to its highest level since January 2022 earlier in the session.

Some Asian equities mirrored overnight Wall Street gains, partly due to relief that the developments in the Middle East over the weekend did not escalate as much as initially feared, ANZ's head of Asia research, Khoon Goh, said.

"But there is still some caution on the part of investors as things could turn quite quickly."

Iran was seeking a U.S. President Donald Trump-mediated immediate ceasefire with Israel, sources told Reuters, which helped Wall Street and also cooled a rally in crude prices on Monday.

However, broader risk-off sentiment gripped markets after Trump called for the evacuation of Tehran. A separate report said Trump has asked for the National Security Council to be prepared in the situation room as he cut short his visit to the Group of Seven summit in Canada.

The Israeli shekel ILS= fell 0.3% after rising 3.5% on Monday.

Oil prices rose, pressuring regional currencies as most Asian economies, except Malaysia, import the bulk of their oil requirement and an increase in prices weighs on current account deficits.

The South Korean won KRW=KFTC weakened 0.2% and the Thai baht THB=TH slipped 0.3%.

"If oil rises above $85/bbl in a sustained manner and if the dollar strengthens, rate cuts may potentially be delayed... as the oil burden rises to above trend, it would further dampen Asia's growth outlook, which is expected to moderate due to trade tensions," analysts at Morgan Stanley said.

In the region, Thailand, Korea, Taiwan, and India would be relatively more exposed to growth downside due to their wider oil and gas balances, they added.

Investors' focus is also on central bank meetings this week.

Bank Indonesia will announce its decision just hours before the U.S. Federal Reserve on Wednesday and is expected to hold its interest rate steady, likely prioritising the stability of the rupiah.

The Bangko Sentral ng Pilipinas is expected to cut its key policy rate by 25 basis points on Thursday, while Taiwan's central bank is likely to maintain status quo.

HIGHLIGHTS:

** BOJ decides to slow bond taper, keeps rates steady

** Singapore's exports unexpectedly fall 3.5% y/y in May

** Malaysia PM says economy remains fundamentally sound

(Reporting by Himanshi Akhand and Roshan Thomas in Bengaluru; Editing by Rashmi Aich)

((Himanshi.Akhand@thomsonreuters.com))