By Sneha Kumar

Dec 5 (Reuters) - Indonesian equities hit a record high on Friday, with other Asian stock markets mixed as investors exercised caution ahead of the U.S. Federal Reserve's policy meeting next week, while regional currencies were lacklustre.

Shares in Jakarta .JKSE jumped 0.6% to touch an all-time high of 8,689.099 before retreating to a rise of 0.2%. The benchmark is set to rise for a third straight week, heading for a weekly gain of 1.7%.

"The valuations (in Indonesia) are quite reasonable, positioning is light and growth momentum, particularly on the investment side is starting to improve," said Rajat Agarwal, Asia equity strategist at Societe Generale.

Indonesia has rolled out a 16.23 trillion rupiah ($974.48 million) stimulus package this year under Finance Minister Purbaya Yudhi Sadewa, who was appointed in early September. The package focused on providing food aid and infrastructure.

The MSCI emerging Asia equities index .MIMS00000PUS rose 0.3%.

In Southeast Asia, Malaysian shares .KLSE slipped 0.5% and Singapore's FTSE Straits Times index .STI slid as much as 0.5% to a one-week low.

Taiwan's stock index .TWII rose 0.2%, while South Korean shares .KS11 rose 1.1%, with the help of a 7.6% jump in Hyundai Motor 005380.KS after the United States reduced tariffs on automobile imports.

Southeast Asian stocks logged gains last week as optimism over a likely 25 basis point U.S. rate cut next week drew investors back to risk assets, but the rally has since cooled.

"Last week's rally in Asian equities was driven by confidence that the Fed will deliver a rate cut, but traders have since turned more cautious because macro data remains mixed and the path beyond the first cut is still unclear," said Glenn Yin, director of research at ACCM.

Meanwhile, Asian currencies were largely steady with flat moves for the Malaysian ringgit MYR=, rupiah IDR=, South Korean won KRW=KFTC, Singapore dollar SGD= and Taiwan dollar TDW=TP.

The Philippine peso PHP= appreciated 0.2% after three days of consecutive declines.

The U.S. dollar continued to drift near its five-week low as investors braced for the U.S. central bank interest rate cut. USD/

Light liquidity in December is discouraging traders from taking big bets against the USD, especially with geopolitical and inflation uncertainties still in play, said Yin.

In India, the rupee INR=IN was flat after the Reserve Bank of India cut its key repo rate by 25 basis points, in line with expectations.

Thai markets were closed for a public holiday.

HIGHLIGHTS:

** Philippine inflation slows more than expected in November

** US senators unveil bill to prevent easing of curbs on Nvidia chip sales to China

** Indonesia pledges action on companies causing catastrophic Sumatra floods

($1 = 16,655.0000 rupiah)

(Reporting by Sneha Kumar in Bengaluru; Editing by Rashmi Aich)

((Sneha.kumar@thomsonreuters.com))