EMERGING MARKETS-Asian stocks, currencies set for weekly gains after hefty Fed rate cut

* Malaysian ringgit reaches highest level in 2-1/2-years * Thai baht set for 9th straight weekly gain * Rupiah hits highest level in 13 months * Indonesia stock index tumbles as much as 2.1% By Himanshi Akhand Sept 20 (Reuters) - Most Emerging Asian stocks and currencies were set for weekly gains on Friday as risk appetite got a boost and buying frenzy continued after a super-sized rate cut from the U.S. Federal Reserve. Singapore's benchmark share index continued to trade at a six-year-high and was set for its sixth consecutive weekly gain, while those in Thailand hovered at their highest level in 11 months. The Thai baht was set for its ninth straight weekly gain, the longest such streak since June 2020. Malaysia's ringgit, Asia's best performing currency this year, continued to trade at its highest level since March 2022, boosted by solid domestic growth prospects. "The Fed has delivered a boost to EM and broader risk assets, and we expect further gains in the near term," Barclays analysts wrote. The 50-basis-point rate cut by the Fed on Wednesday and data showing smaller-than-expected weekly jobless claims on Thursday sparked optimism that the U.S. economy could achieve a soft landing. Markets imply a 40% chance the Fed will cut by another 50 basis points in November. The Fed's larger-than-usual rate cut to kick-off the easing cycle is likely to give leeway to Asian central banks to follow suit. However, Barclays analysts believe not every central bank will necessarily rush to follow the Fed. They see the Fed cut having little impact on the monetary policy paths for the central banks in India, Malaysia, Thailand and Singapore, which will likely continue to be on hold due to inflation or financial-stability constraints. Earlier this week, Bank Indonesia (BI) joined the Philippine central bank in easing policy settings before the Fed. The surprise rate cut by BI in an effort to bolster economic growth has boosted the rupiah. The currency appreciated up to 1% on Friday to its highest level in 13 months. However, Indonesia's benchmark index fell as much as 2% to skid off the all-time peak it reached a day earlier, as panic selling took over after FTSE Russell decided to remove power giant Barito Renewables from its indexes just a day after its expected inclusion, citing shareholder concentration. Barito Renewables fell 20%, dragging the utilities and materials sub-indexes. Meanwhile, China unexpectedly left benchmark lending rates unchanged at the monthly fixing despite fresh signs that its economy is losing steam, pushing the yuan to a 16-month high against the dollar. Major state-owned banks were seen buying dollars in the onshore spot foreign exchange market to prevent the yuan from appreciating too fast. HIGHLIGHTS: ** BOJ keeps interest rate steady, upgrades view on consumption ** Bullish bets steady on Asian currencies as Fed easing bets soften dollar, Reuters poll shows ** Indonesia issues new palm oil levies rule to boost competitiveness Asian stocks and currencies at 0521 GMT COUNTRY FX RIC FX FX INDE STOCKS STOCKS DAILY % YTD % X DAILY YTD % % Japan +0.20 -0.90 <.N2 1.91 13.15 25> China EC> India +0.16 -0.41 <.NS 0.77 17.85 EI> Indonesi +0.89 +1.99 <.JK -1.43 7.14 a SE> Malaysia +0.60 +9.81 <.KL 0.42 14.98 SE> Philippi +0.05 -0.18 <.PS 1.46 13.29 nes I> S.Korea 11> Singapor +0.08 +2.22 <.ST -0.43 11.64 e I> Taiwan +0.05 -3.70 <.TW 0.86 23.99 II> Thailand +0.09 +3.28 <.SE 0.21 2.97 TI> (Reporting by Himanshi Akhand in Bengaluru; Editing by Kim Coghill)