Most equities in emerging Asia advanced on Tuesday, led by strong performances in Singapore and South Korea, while currencies remained largely subdued as traders were uncertain about the timing of US interest rate cuts.

Singapore's benchmark index, one of the worst performers in the region so far this year, advanced 1% to hit a five-week high. Banking stocks were among the top boosts in the index, with DBS Group - Southeast Asia's biggest bank by assets - jumping as much as 1.4% to its highest level since February 2022.

The South Korean benchmark index surged 0.7% to their highest level since February 2022.

Philippine stocks slipped 0.5% to a two-week low. The country, one of Asia's most active issuers of sovereign debt, announced plans to raise as much as 585 billion pesos from treasury bills and bonds in the second quarter.

New quarterly economic projections showed nine of the Federal Reserve's 19 policymakers see three quarter-point rate cuts this year.

Investors, however, are worried that the key US inflation gauge - core personal consumption expenditure (PCE) price index - due on Friday could derail the outlook for lower US rates.

In Taiwan, the central bank said it would continue moderating its tight rate policy after unexpectedly raising the benchmark rate last week. 

Equities in the country dipped 0.3%, while the Taiwanese dollar edged 0.1% lower.  

Among other regional currencies, the South Korean won, the third-worst performer in Asia FX, edged up 0.2%.

"The broad strength of the US dollar is evident in USD/KRW and USD/TWD where persistent portfolio inflows to Korea and Taiwan equities have failed to spark any sustained drop in the FX pairs," said Alvin Tan, who heads Asia FX strategy at RBC Capital Markets.

China's yuan fell 0.1% to 7.218 per US dollar, above the psychologically important 7.2-per-dollar level.

"I anticipate that USD/CNY could drift back towards the low 7.30s gradually over time. The PBOC needs to accommodate renewed US dollar strength, but it will also continue to lean against volatility and ensure that FX moves are orderly," Tan said.

Elsewhere, the central bank in Sri Lanka surprised markets with a 50-basis-point interest rate cut on Tuesday as policymakers prioritised boosting growth and steering the economy out of financial crisis. The Sri Lankan rupee appreciated 0.3%.

Investors are on the lookout for US consumer confidence and trade figures due later in the day.

  - Reuters