By Sneha Kumar

Feb 12 (Reuters) - South Korean shares rose to a record on Thursday on sustained demand for chip stocks amid rapid global AI expansion plans, while Singapore shares crossed the 5,000 level for the first time as investors also rotated into diversified, non-tech alternatives in Asia.

The MSCI index of emerging Asian equities .MIMS00000PUS climbed around 0.5% to a fresh peak, led by South Korea's KOSPI index .KS11, which rose 3% to a record high.

Chipmakers Samsung Electronics 005930.KS and SK Hynix 000660.KS jumped 5.8% and 3.1%, respectively, helping lift the benchmark for a fourth straight session.

"AI enthusiasm is clearly back in the driver's seat for Asian chipmakers, with memory pricing firming and capex pipelines still expanding," said Glenn Yin, director of research at brokerage firm ACCM.

Singapore's FTSE Straits Times index .STI also advanced 0.7% to a record 5,021.27, breaching the psychologically important 5,000-point level for the first time, helped by consumer and financial stocks.

The city-state upgraded its growth forecast for this year to a range of 2% to 4% after a stronger-than-expected finish to 2025, citing a supportive global economic outlook and an AI investment boom that's lifting demand for its exports.

"With global investors trimming crowded tech exposure elsewhere in Asia, flows are rotating into markets offering earnings visibility and balance-sheet," Yin said.

"Singapore's breakout above 5,000 reflects more than just upgraded growth projections, but also a rotation into stability in an otherwise uneven regional backdrop."

The country will unveil its fiscal 2026 budget later in the day, which is expected to be fiscally conservative.

Elsewhere, Thailand's benchmark index .SETI maintained its election-driven rally to rise 1.4%, sitting near its highest level since mid-December 2024.

Investor confidence has perked up following Prime Minister Anutin Charnvirakul's big surprise win in Sunday's election, raising the prospects political stability and new policies to deliver growth.

On the other hand, Indonesia equities .JKSE declined 0.6%, snapping three sessions of gains.

The Jakarta market has taken a bruising of late, erasing about $80 billion in market value after index provider MSCI warned of a potential downgrade to frontier-market status, citing transparency red flags in late January.

Meanwhile, stocks in Malaysia .KLSE and Philippines .PSI dipped around 0.3% and 0.4%, respectively.

Among Asian currencies, the rupiah IDR= shed the most with a 0.3% drop, while the South Korean won KRW=KFTC and Taiwan dollar TWP=TP appreciated by 0.3% each.

The dollar index =USD was largely flat after a stronger-than-expected January U.S. employment report overnight nudged traders to price in a slower pace of Federal Reserve interest rate cuts.

HIGHLIGHTS:

** Yield on Indonesia's 10-year benchmark bonds ID10YT=RR at 6.436%

** Indonesia Stock Exchange to publish share owner list after 'constructive' meeting with MSCI

** Thailand's election commission faces pressure over vote transparency

** World Bank trims Thailand's 2026 GDP growth outlook to 1.6% from 1.7%

(Reporting by Sneha Kumar in Bengaluru; Editing by Ronojoy Mazumdar)

((Sneha.kumar@thomsonreuters.com))