EM ASIA FX-Asian currencies firm as dollar eases; Thai baht gains most

* Investors eye Fed policy meet, U.S-China trade talks

* China's yuan strengthens to 6-month high versus dollar

* Thai baht touches highest against greenback since

April-end

(Adds text, updates prices)

By Nikhil Nainan

Jan 28 (Reuters) - A weaker U.S. dollar lifted Asian

currencies on Monday heading into major market events including

a Federal Reserve policy meeting and high-level U.S.-China trade

talks.

In its first meeting of 2019, the Fed is expected to pause

its rate hike cycle, benefiting emerging market currencies.

Recent comments by Chairman Jerome Powell have suggested the

central bank will be patient in its policy decisions this year,

citing growing risks to the U.S. economy.

The dollar index, a gauge of its value versus six

major peers, traded 0.1 percent lower at 95.694, its weakest

level in about two weeks, as a deal to reopen the U.S.

government for now reduced demand for the safety of the

greenback.

"With no policy action appearing to be a forgone conclusion

at this FOMC, what markets will gauge is how open the Fed is in

shifting out of tightening mode," Mizuho Bank said in a note,

referring to the meeting of the Federal Open Market Committee

between Jan 29-30.

Broad strength in Asian currencies was led by the Thai baht

, which rose to its strongest level against the dollar

since last April, rising about 0.5 percent.

The new year has seen investors turn bullish on most Asian

currencies, with a recent Reuters poll finding that investors

were most bullish on the Thai baht.

Last week, the country set March 24 as the date for its

long-awaited general election.

The Indonesian rupiah and Philippine peso

among 2018's worst performers, gained 0.3 percent and 0.2

percent, respectively.

India's rupee rose 0.1 percent to 71.080 to the

dollar. On Friday, the government will announce its last budget

before national elections, which are expected to be held by May.

YUAN MAKES STRIDES AHEAD OF HIGH-LEVEL TRADE TALKS

The Chinese yuan gained 0.3 percent, rising to an

over six-month high against the dollar, ahead of Chinese Vice

Premier Liu He's visit to the United States on Jan. 30-31 for

the next round of trade negotiations with Washington.

The unit received support in early trade on Monday after

major state-owned Chinese banks were seen selling dollars into

spot market to prop up the Chinese currency, three yuan traders

said.

U.S. Treasury Secretary Steven Mnuchin said last week that

currency issues would be on the agenda for the bilateral trade

talks.

Sources say China is keen to buy more U.S. goods to reduce

its massive trade surplus, but the two sides are far apart on

other issues such as Washington's demands that Beijing make

structural economic reforms.

Meanwhile, a Reuters poll late last week showed investors

turned bullish on China's yuan for the first time in nearly

eight months, coinciding with the escalation in trade tensions

between the world's top two economies.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0442 GMT

Currency Latest bid Previous day Pct Move

Japan yen 109.390 109.53 +0.13

Sing dlr 1.351 1.3536 +0.16

Taiwan dlr 30.749 30.825 +0.25

Korean won 1116.300 1121.3 +0.45

Baht 31.490 31.64 +0.48

Peso 52.410 52.505 +0.18

Rupiah 14040.000 14080 +0.28

Rupee 71.080 71.18 +0.13

Ringgit 4.108 4.1225 +0.35

Yuan 6.731 6.7485 +0.26

Change so far in 2019

Currency Latest bid End 2018 Pct Move

Japan yen 109.390 109.56 +0.16

Sing dlr 1.351 1.3627 +0.84

Taiwan dlr 30.749 30.733 -0.05

Korean won 1116.300 1115.70 -0.05

Baht 31.490 32.55 +3.37

Peso 52.410 52.47 +0.11

Rupiah 14040.000 14375 +2.39

Rupee 71.080 69.77 -1.84

Ringgit 4.108 4.1300 +0.54

Yuan 6.731 6.8730 +2.11

(Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Kim

Coghill)