EMERGING MARKETS-Asian stocks climb on US rate-cut bets; currencies tepid

(.) * Singapore stocks at over two-year peak * Focus on inflation data from Thailand, Philippines, Taiwan * U.S. back on disinflationary path - Fed's Powell By Roshan Thomas July 3 (Reuters) - Asian equities rose on Wednesday after comments from Federal Reserve Chair Jerome Powell reignited hopes that the U.S. central bank is likely to begin its easing cycle later this year, while currencies remained subdued amid a steady dollar. Stocks in Singapore climbed as much as 1.6% to touch their highest levels since April 2022, and Taiwan equities rose 1.1% after local technology stocks tracked upbeat performances in their U.S. peers. Seoul shares gained 0.5% after the government unveiled tax benefits for companies that raise shareholder returns. The South Korean government also pledged to support small businesses and the construction sector struggling due to high interest rates in the second half of 2024, as it revised up its forecast for this year's economic growth. "The uptrend in global equities remains strong, as exemplified in the S&P500 Index hitting a record closing high overnight. This general positive equity sentiment has been rubbing off on most Asian equity indexes," said Alvin Tan, head of Asia FX strategy, RBC Capital Markets. Shares in Manila, Kuala Lumpur and Bangkok gained between 0.3% and 0.8%. Powell said on Tuesday that the U.S. is back on a "disinflationary path", while noting that policymakers require additional data before they contemplate reducing interest rates. Markets are now pricing in a 67.1% chance of the Fed cutting interest rates in its September meeting, compared with a 54.7%, a month ago, according to the CME FedWatch Tool. Back in Asia, the South Korean won and the Thai baht inched 0.2% lower. China's yuan skidded to a seven-month low against the dollar amid lacklustre economic data and as the central bank nudged the currency's trading range a little bit lower. China's services activity expanded at the slowest pace in eight months and confidence hit a four-year low in June, data from a private survey showed, reinforcing expectations of further economic stimulus. Other regional currencies were trading largely flat. Investors are now awaiting inflation data from Thailand, the Philippines and Taiwan this week. Earlier this week, reports showed that inflation cooled in both South Korea and Indonesia, with Indonesia's June inflation easing more than expected. Most Asia ex-China central banks were unlikely to cut rates ahead of the Fed, even if inflation cooled further, due to concerns about encouraging FX weakness, RBC Capital's Tan said. HIGHLIGHTS: ** World Bank cuts 2024 Thai GDP growth outlook to 2.4% on weaker exports ** South Korea President Yoon says headline inflation is stabilising ** Thailand plans more measures to boost growth to 3%, official says Asia stock indexes and currencies at 0444 GMT COUNTRY FX RIC FX FX INDEX STOCKS STOCK DAILY YTD % DAILY S YTD % % % Japan -0.17 -12.7 0.99 20.94 7 China India +0.01 -0.35 0.63 11.71 Indones +0.03 -6.04 0.25 -1.79 ia Malaysi -0.02 -2.71 0.57 10.48 a Philipp +0.04 -5.76 0.79 -0.63 ines S.Korea Singapo -0.06 -2.76 1.32 5.31 re Taiwan -0.09 -5.89 1.11 29.02 Thailan -0.18 -7.19 0.26 -8.75 d (Reporting by Roshan Thomas in Bengaluru; Editing by Sherry Jacob-Phillips)