By Shashwat Chauhan

Oct 16 (Reuters) -A gauge of emerging market stocks dipped on Wednesday as chips-heavy markets in Taiwan and South Korea slipped following a dour earnings update from Dutch firm ASML, while most currencies remained in limbo.

MSCI's index for emerging market stocks .MSCIEF slipped 0.6% as of 0830 GMT, hitting a three-week low.

Taiwan .TWII and South Korea .KS11 bourses were down about 1% each after ASML ASML.AS forecast lower than expected 2025 sales and bookings.

Most currencies in emerging Europe traded in a flat-to-low band against the euro ahead of the European Central Bank (ECB)'s rate verdict on Thursday, with consensus pointing to a 25-basis-point rate cut.

Jill Hirzel, senior investment specialist at Insight Investment, expects the ECB to cut rates but she said: "Any forward guidance around the future pace of cuts is likely to remain cautious, as the ECB maintains its data dependent approach."

Most EM assets have come under pressure as rising hopes of smaller rate cuts by the Federal Reserve, faltering expectations around Chinese stimulus and elevated geopolitical worries have kept investors wary of risk taking.

On Thursday, a U.S. retail sales reading and jobless claims data could set the tone for market expectations around the Fed's rate path.

South Africa's rand ZAR=D3 gained 0.2% against the dollar after falling for the last two sessions, while the local equity index .JTOPI was last up 0.2%.

In Asia, Thailand's central bank unexpectedly cut its key interest rate by 25 basis points to 2.25%, while the Philippine central bank also opted for a 25 basis points cut, bringing its main lending rate down to 6.0%.

Indonesia's rupiah IDR= strengthened 0.5% after the central bank kept interest rates unchanged at 6%, as expected.

Rate verdicts in Turkey and Chile are also expected this week.

Speaking with Reuters NEXT, World Bank President Ajay Banga said the body voted to change its internal lending guidelines, freeing up $30 billion in additional lending capacity over the next decade to help developing countries and emerging markets grapple with climate change and other global challenges

Elsewhere in emerging markets, ratings agency Fitch upgraded Barbados' credit rating to 'B+', while S&P revised Chile's outlook to 'stable'.

HIGHLIGHTS:

** Global fund managers pare India allocation in favour of China, BofA survey shows

** Israeli strike rocks Beirut after US says it opposes scope of air assault

** Impeachment proceedings against Kenyan deputy president are constitutional, court says

Reporting by Shashwat Chauhan in Bengaluru, Editing by Angus MacSwan

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