By Rajasik Mukherjee

Feb 18 (Reuters) - Emerging Asian currencies weakened on Wednesday and equities moved narrowly in thin holiday‑curbed trade, with the rupiah under pressure a day ahead of Bank Indonesia’s policy meeting.

Volumes were thin across the region with markets in China, South Korea, Taiwan, Malaysia, and Singapore all closed for holidays.

"Asian FX softness today is largely a function of thin, holiday-hit liquidity, which has made regional currencies more vulnerable to even modest order flows," said Ruben Carlo Asuncion, chief economist at Union Bank of the Philippines.

"The rupiah remains under pressure amid lingering fiscal concerns and sensitivity to dollar moves."

The Indonesian rupiah IDR=, one of the region’s few actively traded currencies on the day, depreciated 0.3%, after it resumed trading following a long holiday-weekend.

A Reuters Poll showed that Bank Indonesia (BI) would most likely stand pat on rates for a fifth straight meeting, as the rupiah comes under renewed pressure.

The currency has lost just over 1% in 2026, making it the region's worst performing currency so far this year.

Indonesian stocks rose 1% on the back of stronger moves across the industrials and utilities sectors, which gained over 2% each.

The Philippine central bank's rate decision is also due February 19. The market sees the central bank lowering rates by 25 basis points, where they are expected to stay for the rest of the year.

"What will matter for markets is the forward guidance...A steady, predictable tone would keep USD/PHP trading within its recent range, with the larger FX impulse coming only if guidance turns unexpectedly dovish," added Ruben Carlo.

The Philippine peso PHP= had fallen around 0.2% in early trade but pared losses to trade flat, while equities were 0.2% higher.

The Singapore dollar SGD=, the Thai baht THB=TH, and the Indian rupee INR=IN all also traded flat.

Stocks in Thailand rose 0.4% to touch their highest level since November 19, 2024. The benchmark index has been on a hot run after election results earlier this month, which stoked investor optimism on hopes of political stability.

Elsewhere in the region, stocks in India .NSEI were down 0.2%, while those in Japan .N225 traded over 1% higher.

HIGHLIGHTS:

** Iran foreign minister says progress made in nuclear talks with US in Geneva

** Cambodian PM says Thailand is occupying territory after Trump-brokered ceasefire

** New Zealand keeps rates steady, sees loose policy for some time

(Reporting by Rajasik Mukherjee in Bengaluru; Editing by Ronojoy Mazumdar)

((Rajasik.Mukherjee@thomsonreuters.com))