EM ASIA FX-Most currencies rise on 'no-surprise' Fed, gains capped by trade war fears

* Yen higher as trade war tensions persist

* Malaysian ringgit sees best session in 3 weeks

(Adds detail, updates prices)

By Ambar Warrick

March 22 (Reuters) - The Malaysian ringgit led gains as

Asian currencies rose against the dollar after the Fed's rate

hike decision came in as expected, although resurgent fears of a

global trade war weighed on positive sentiment.

The U.S. central bank raised interest rates on Wednesday and

forecast at least two more hikes for 2018, a move that

disappointed dollar bulls who had hoped for four over the year.

"The overall (Fed) statement was less hawkish than the

market had expected, so we did see the U.S. dollar back off as a

result, which led to Asian currencies gaining on the open," said

Khoon Goh, head of Asia research at ANZ Banking Group

(Singapore).

The Fed's latest move takes its policy rate to levels above

those in Taiwan. Rates in South Korea and Thailand are at 1.5

percent, the lower end of the Fed's policy rate range.

"On the other side, Asian currencies are driven to some

degree by what's happening on the equities side, which were

somewhat mixed. You also have a decision by Trump on the

imposition of tariffs on China, so I think that's also partly

weighing," Goh added.

U.S. President Donald Trump is scheduled later in the day to

sign a memo imposing tariffs on up to $60 billion of Chinese

imports, focusing on technology, telecommunications and

intellectual property. Global equities were largely subdued in

anticipation.

The Japanese yen rose more than 0.1 percent, marking

a rise in risk aversion. The yen is a popular buy when market

caution prevails.

Regionally, the Malaysian ringgit led gains, rising

about 0.4 percent on the greenback, its best session in three

weeks. It was followed by the Taiwan dollar, which

gained about 0.2 percent.

Taiwan's central bank is expected to leave its policy rate

steady for the seventh straight quarter when it meets later in

the day, a Reuters poll showed.

The Philippine peso did not capitalise on the

dollar weakness however, and stayed largely flat ahead of a key

central bank meeting due later in the day.

CHINESE YUAN AND HONG KONG DOLLAR

The Chinese yuan pared early gains to trade

slightly higher to the dollar, while its geographical peer, the

Hong Kong dollar plunged to a fresh 33-year low.

China raised its benchmark repo rate by 5 basis points,

following the U.S. Federal Reserve Bank's move overnight in a

move viewed by many as a symbolic bid to keep the China-U.S.

rate spread from widening.

Hong Kong, whose currency is pegged to the U.S. dollar,

followed suit with a 25 basis point rise in its base rate.

The following table shows rates for Asian currencies against

the dollar on Thursday.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0611 GMT

Currency Latest bid Previous day Pct Move

Japan yen 105.900 106.04 +0.13

Sing dlr 1.314 1.3122 -0.11

Taiwan dlr 29.134 29.189 +0.19

Korean won 1072.000 1072.3 +0.03

Baht 31.190 31.21 +0.06

Peso 52.175 52.15 -0.05

Rupiah* 13740.000 13760 +0.15

Rupee* 65.075 65.21 +0.20

Ringgit 3.909 3.924 +0.38

Yuan 6.322 6.3284 +0.09

Change so far in 2018

Currency Latest bid End 2017 Pct Move

Japan yen 105.900 112.67 +6.39

Sing dlr 1.314 1.3373 +1.80

Taiwan dlr 29.134 29.848 +2.45

Korean won 1072.000 1070.50 -0.14

Baht 31.190 32.58 +4.46

Peso 52.175 49.93 -4.30

Rupiah 13740.000 13565 -1.27

Rupee 65.075 63.87 -1.85

Ringgit 3.909 4.0440 +3.45

Yuan 6.322 6.5069 +2.92

(Reporting by Ambar Warrick in Bengaluru

Editing by Eric Meijer)