Emerging market assets started the week on a subdued note after China defied expectations of an interest rate cut, while the Taiwan dollar took a beating after the ruling Democratic Progressive Party won the presidential elections.

The DPP, which champions Taiwan's separate identity and rejects China's territorial claims, bagged an unprecedented third successive term on Saturday with Lai Ching-te elected as president.

Taiwan's currency fell 0.4% on Monday, hitting a three-week low against the U.S. dollar, while regional stocks rose 0.2%.

"The result implies no change to relations between mainland China and Taiwan," Hasnain Malik, head of equity research at Tellimer said in a note.

Malik added China is likely to continue its "rhetorical dismissal of pro-independence sentiment" in Taiwan.

The Thai baht came off a one-week high touched earlier in the session and was last flat.

Thailand's central bank on Monday said "uneven" economic recovery cannot be fixed only by adjusting interest rates, hitting back at the government's calls to ease monetary policy.

The broader emerging market (EM) currencies index was down 0.2% at 0924 GMT, while stocks were muted following two days of gains.

China's blue-chip index closed down 0.1% after the country's central bank boosted liquidity injections but surprised markets by leaving its medium-term interest rate unchanged.

EM assets had a weak start to 2024, though softer-than-expected U.S. producer prices data on Friday restored some optimism around early rate cuts from the Federal Reserve and aided sentiment towards risky assets.

U.S. markets are closed for a holiday on Monday.

EM-focused fund manager Ashmore said its assets under management climbed 4% in the second quarter, supported by a positive response from clients to signs of an improving global economy.

Moody's on Friday revised Turkey's outlook to positive from stable, citing the decisive change to the country's monetary policy.

Elsewhere, anti-corruption crusader Bernardo Arevalo was sworn in as Guatemala's president in the early hours of Monday after a chaotic inauguration.

The International Monetary Fund's Executive Board is due to meet on Friday to approve a $600 million rescue loan payout to Ghana, three sources told Reuters.

(Reporting by Amruta Khandekar; Editing by Varun H K)