EMERGING MARKETS-Asian share markets gain on U.S. debt ceiling deal

* Indonesian stocks ease, bucking regional trend * Bank of Thailand expected to raise interest rates this week By Mehr Bedi May 29 (Reuters) - Asian stocks rose on Monday, tracking U.S. futures, after a deal to suspend the U.S. government's debt ceiling until 2025 averted a potential default that would likely have led to recession in the United States and trouble for the global economy. The deal struck on Saturday evening between congressional Republican Kevin McCarthy and President Joe Biden will now have to pass through the narrowly divided Congress. "There could still be some more twists and turns this week. But, with the progress made on a tentative deal and the rather convenient changing of the deadline to June 5th, risk-assets are continuing to price-out the potentiality of a U.S. default," said Tim Waterer, chief market analyst at KCM Trade. Stocks in Taiwan and Philippines advanced 0.8% and 0.4% respectively, while Singapore's benchmark rose 0.2%. Bucking the trend, equities in Jakarta weakened. China released data for industrial firms' profits over the weekend that added to concerns that the world's second-biggest economy could be losing momentum. Currencies in the region, however, struggled for direction. The Taiwanese dollar and South Korean won appreciated 0.4% and 0.1% while most other currencies in the region lost ground against a firmer U.S. dollar. "Markets are wary of the potential for tighter liquidity once the US Treasury re-starts its T-bill issuance, which would drain liquidity and keep the dollar firm in the near-term," said Khoon Goh, head of Asia research at ANZ. The Philippine peso and Malaysian ringgit eased 0.3% and 0.1% respectively. Elsewhere in Southeast Asia, the Bank of Thailand is expected to raise its policy interest rate by 25 basis points on Wednesday and then stand pat for the rest of this year and the next, marking an end to a modest tightening cycle, a Reuters poll found. The Thai baht eased 0.2%. "Weakness in THB could be halted by improved market sentiment, especially in the Thai stock market due to optimism over the US debt ceiling deal," said Poon Panichpibool, a markets strategist at Krung Thai Bank. HIGHLIGHTS: ** Thailand's finance minister said economy resilient, on path towards full recovery ** Debt deal could boost unloved corners of U.S. stock market, though risks loom ** Mexican economy grew for sixth consecutive quarter in Q1 Asia stock indexes and currencies at 0415 GMT COUNTRY FX RIC FX FX INDE STOCKS STOCKS DAILY % YTD % X DAILY YTD % % Japan +0.05 -6.72 <.N2 0.92 19.60 25> China EC> India +0.02 +0.20 <.NS 0.71 2.90 EI> Indonesia -0.17 +3.94 <.JK -0.95 -3.31 SE> Malaysia -0.11 -4.39 <.KL 0.06 -6.13 SE> Philippines -0.29 -0.70 <.PS 0.37 -0.18 I> S.Korea 11> Singapore -0.01 -0.92 <.ST 0.19 -1.16 I> Taiwan +0.37 +0.24 <.TW 0.76 17.63 II> Thailand -0.16 -0.49 <.SE 0.52 -7.78 TI> (Reporting by Mehr Bedi in Bengaluru; Editing by Simon Cameron-Moore)