EMERGING MARKETS-Asian markets gain as U.S. inflation suggests moderate rate hikes

* Thai baht notches 6-mth high * Thai stocks gain most in 2-weeks * Malaysian ringgit gains most in over 1-week By Roushni Nair Dec 14 (Reuters) - Emerging markets across Southeast Asia inched higher on Wednesday after U.S. data showed unexpectedly low price rises in November, fuelling hopes that the Federal Reserve would moderate its rate-hike path as early as this week. Most Asian currencies firmed against the U.S. dollar, with Thailand's baht and Malaysia's ringgit leading the pack, as expectations of a less hawkish Fed bolstered appetite for riskier assets. The U.S. consumer price index increased 0.1% last month, the Labor Department said on Tuesday. Economists polled by Reuters had forecast a rise of 0.3%. Fed funds futures have priced in a lower peak interest rate for this tightening phase, now seeing the central bank stopping just below 5% by March. Traders are now betting on 25-basis-point increases at each of the Fed's first two meetings of 2023 then no more, with some chance the last hike could come in May instead of March. "The anticipated interest differential isn't going to be as wide as it would have been, but also because it's just a general risk-on sentiment and that tends to lead to greater capital flows to EM (emerging markets) countries," said Robert Carnell, regional head of research for the Asia-Pacific at ING. The baht had strengthened 0.6% by 0320 GMT, touching its highest level since June 13, while the ringgit firmed 0.4%, its strongest rise in more than a week. Meanwhile, Thailand's finance minister said the country's economy, Southeast Asia's second-largest, should grow by 3.4% this year and 3.8% next year on the back of a rebound in tourism. The Bank of Thailand's interest rate committee said further monetary tightening would be gradual and measured and could be adjusted if necessary, according to minutes of the meeting. Most economists predict a hike by the central bank when it next meets late in January. The Philippines peso firmed 0.2% after losing for two straight sessions. The Philippines central bank is likely to opt for a more modest 50-basis-point hike on Thursday even though inflation is running at a 14-year high, a Reuters poll found. Other currencies across the region were buoyant, the Indian rupee and Indonesian rupiah strengthened 0.2% each, while the Korean won and Taiwan dollar each gained 0.6%. As for the outlook for the dollar following the upbeat U.S. inflation data, Carnell said the dollar may not get anywhere close to parity with the euro again in the near term. The Asian Development Bank cut its growth forecasts for developing Asia, saying the region continued to face headwinds from the Russia-Ukraine conflict, China's COVID-19 policies, and a slowing global economy. Stock markets across Asia were trading broadly higher, with equities in Thailand and South Korea advancing 0.8% each, while those in Malaysia and India advanced 0.5% and 0.4%, respectively. HIGHLIGHTS: ** Indonesian 10-year benchmark yields fall 2.9 basis points to 6.919% ** ADB cuts China 2023 economic growth forecast To 4.3% from 4.5% estimate ** Taiwan interest rates seen rising to 1.75% on Thursday - Reuters poll Asia stock indexes and currencies at 0338 GMT COUNTRY FX RIC FX FX INDEX STOCKS STOCKS DAILY % YTD % DAILY YTD % % Japan +0.07 -15.0 0.67 -2.26 5 China India +0.23 -10.0 0.00 7.23 3 Indonesi +0.22 -8.77 0.11 3.59 a Malaysia +0.39 -5.56 0.47 -3.94 Philippi +0.18 -8.46 0.02 -7.56 nes S.Korea Singapor -0.09 +0.08 0.39 5.13 e Taiwan +0.50 -9.47 1.29 -19.26 Thailand +0.46 -3.61 0.58 -1.35 (Reporting by Roushni Nair in Bengaluru; Editing by Bradley Perrett)