Emerging Asia FX-Lacklustre, supported by yen and flows

SINGAPORE, June 21 (Reuters) The South Korean won rose a quarter of a percent on Wednesday but other Asian currencies were only marginally higher in lacklustre trading driven mainly by the yen's strength in anticipation of higher Japanese interest rates.

While expectations remained that the U.S. Federal Reserve would raise rates for the 17th straight time later this month and probably once again in August, the focus in Asia was on Bank of Japan Governor Toshihiko Fukui's statements on Tuesday suggesting a early but gradual rise in Japan's near-zero rates.

The won rose to around 952 a dollar, more than a quarter of a percent stronger than Tuesday's levels. It was propped up by the yen and news that Samsung Heavy Industries Co. , the world's third-biggest shipbuilder, had won 885.5 billion won in orders.

The Singapore dollar was barely changed around 1.5880/90 per U.S. dollar, having gained nearly a percent from Monday's 2-month lows.

''It is a combination of the yen continuing to push higher and we've also got very little information coming out of Fed speakers as we head into the FOMC meeting,'' a Singapore-based trader said.

''Also, the market has been sitting long dollar/Asia for a while, but the dollar hasn't moved higher than its recent highs,'' he said.

Traders said the won's rally of half a percent on Tuesday suggested the market had been extremely long of dollars against that currency too.

Investment inflows continued to support the won and also the Singapore dollar. Traders said Singapore was probably receiving inflows related to the Marina Bay resort, a casino project costing more than S billion that was awarded in May to Las Vegas Sands Corp. .

''I hear one of the local banks has been selling U.S. dollars since yesterday and is likely to do so again, and that is supportive for the Sing dollar,'' a trader said.

REUTERS SY VC0915