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By Shivangi Lahiri

Dec 10 (Reuters) - The Indonesian rupiah weakened on Wednesday, while other Asian currencies and equities trod water as investors globally awaited guidance from a potentially divided U.S. Federal Reserve policy board later in the day.

The Indonesian rupiah IDR= eased as much as 0.2% to 16,693 per dollar. It has weakened about 3.5% so far this year, making it one of the worst performers in Asia.

Among other currencies in the region, the Malaysian ringgit MYR= and South Korea's won KRW=KFTC edged down 0.2% and 0.1%, respectively.

A U.S. official said on Tuesday a trade agreement reached with Indonesia in July was at risk of collapsing after Jakarta backtracked on several commitments it made as part of the deal.

An Indonesian government official said on Wednesday the tariff talks were still ongoing with no specific issues arising during the negotiations.

Investor sentiment towards Indonesian assets has remained broadly positive, supported by stronger government backing, including a 16.23 trillion rupiah ($973.02 million) stimulus package unveiled this year under new Finance Minister Purbaya Yudhi Sadewa and liquidity support for state-owned banks.

An improving growth outlook and the February launch of Danantara, a $20-billion state fund to boost domestic investment, have further underpinned investor confidence.

Equities in Jakarta .JKSE, which have hit multiple record highs over the last two weeks, rose 0.4%.

"I believe the market is more immune to the noise from the trade deal unless there is more visibility on the potential impact," said Ernest Chew, head of ASEAN equities at BNP Paribas Asset Management.

"Investors remain constructive on Indonesia because the domestic backdrop is still doing a lot of heavy lifting."

Among stock markets, Malaysia .KLSE and the Philippines .PSI declined 0.3% and 0.6%, respectively.

With markets pricing in a more than 89% probability of a 25-basis-point Federal Reserve interest rate cut later in the day, the spotlight is squarely on its outlook for 2026.

The Fed meeting this week has shaped up to be one of its most contentious in years, with five of the 12 voting members on the Federal Open Market Committee having already signalled opposition or scepticism towards additional easing.

Analysts at MUFG continue to see a hawkish 25-bp cut and potential for a somewhat divided decision, given the lack of clarity on U.S. macro numbers so far.

Thailand's baht THB=TH was flat, while the stock market .SETI was closed for a public holiday.

($1 = 16,680.0000 rupiah)

HIGHLIGHTS:

** Trump says to make phone call to stop Thai-Cambodia fighting

** US backs Japan in dispute with China over radar incident

** Twelve killed in residential fire in southern China, Xinhua reports

** South Korea's Lee calls for probe into links between religious group and politics

(Reporting by Shivangi Lahiri in Bengaluru; Editing by Subhranshu Sahu)

((shivangi.lahiri@thomsonreuters.com))