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By Sneha Kumar and Sruthi Narasimha Chari

May 13 (Reuters) - The Indonesian rupiah recovered from a record low touched earlier on Wednesday, while equities slipped to a one-year low, after index provider MSCI removed six local companies from its domestic global standard index following a quarterly review.

MSCI's move is the latest blow to Southeast Asia's largest economy, which is already grappling with crude price shocks and concerns about fiscal discipline, central bank independence and stock market regulation.

Stocks in Jakarta .JKSE fell as much as 1.9% to 6,726.575, the lowest level since late April 2025, while the rupiah weakened to an all-time low of 17,535 a dollar before strengthening slightly to 17,455.

MSCI's removal included four of Indonesia's top 20 stocks by market capitalisation, which plunged between 7% and 15%.

Investors are now awaiting an index review in June after MSCI assesses reforms in the country.

The Indonesian economy recently faced a number of setbacks. MSCI's transparency concerns triggered an $80 billion market rout that prompted new regulations, while Moody's cut the country's credit rating outlook to negative due to unpredictable policymaking.

Domestic market conditions are still quite fragile and local investor nervousness has also increased after the USD/IDR pair broke above 17,500 ahead of a long weekend, said Liza Camelia Suryanata, head of equity research at Kiwoom Securities Indonesia.

Indonesian markets will be closed on Thursday and Friday for a public holiday.

Elsewhere, currencies of energy-reliant nations were mixed, with investors caught in a tug-of-war between a firm U.S. dollar and retreating oil prices. USD/

Crude prices eased by more than 1% as investors remained cautious, awaiting developments on the fragile Middle East ceasefire and the much-anticipated summit in China between U.S. President Donald Trump and President Xi Jinping. O/R

The Philippine peso PHP=, ringgit MYR= and South Korean won KRW=KFTC appreciated around 0.2% each, while the Singapore dollar SGD= and Taiwan dollar TWD=TP were unchanged.

The Thai baht THB= steadied at 32.35 per dollar and the shares .SETI jumped as much as 2.5%, their biggest single-day rise since late March.

Thailand's finance minister projected economic growth surpassing 3% in the next one-to-two years, driven by fresh investments. Its central bank indicated it was in no hurry to hike interest rates.

Shares in Seoul .KS11 recovered Tuesday's losses with a 2.6% gain on Wednesday. It is on track to mark an annual gain of over 80%, far ahead of its peers.

Shares in Manila .PSI slipped 0.4%, with Jollibee Foods JFC.PS emerging as the hardest hit, shedding more than 6% after it was removed from MSCI's Philippine global standard index.

HIGHLIGHTS:

** MSCI's removal of six firms a result of Indonesia's market reforms, regulator says

** Samsung Electronics fails to reach deal with union; PM says strike must be averted

** India central bank governor says may need to act if inflation pressures deepen

Asia stock indexes and currencies at 0729 GMT
COUNTRY	FX RIC	FX DAILY %	FX YTD %	INDEX	STOCKS DAILY %	STOCKS YTD %
Japan	JPY=	-0.05	-0.66	.N225	0.84	25.69
China	CNY=CFXS	+0.07	+2.90	.SSEC	0.67	6.90
India	INR=IN	-0.09	-6.10	.NSEI	0.32	-10.24
Indonesia	IDR=	+0.17	-4.52	.JKSE	-1.65	-21.99
Malaysia	MYR=	+0.18	+3.34	.KLSE	-0.30	3.88
Philippines	PHP=	+0.19	-4.15	.PSI	-0.42	-1.75
S.Korea	KRW=KFTC	+0.13	-3.32	.KS11	2.63	86.13
Singapore	SGD=	0.00	+1.09	.STI	1.02	7.54
Taiwan	TWD=TP	-0.14	-0.28	.TWII	-1.25	42.85
Thailand	THB=TH	-0.03	-2.81	.SETI	1.95	20.07