EMERGING MARKETS-Thai baht unchanged after c.bank hikes rates; Singapore stocks rally

* Thai baht, stocks unchanged after rates decision * Singapore shares hit near 9-mth high * China, Taiwan, Hong Kong closed for New Year By Savyata Mishra Jan 25 (Reuters) - The Thai baht was broadly unchanged on Wednesday after the country's central bank hiked interest rates as expected and hinted at further adjustments, while Singapore shares hovered near a nine-month high after inflation data. The baht - Asia's best-performing currency so far this year - edged 0.1% lower with the Bank of Thailand (BoT) saying any further rate hikes would be gradual and measured, but it stood ready to adjust. "Expanded policy space from THB rebound does leave the door open for a pause predicated on elevated debt vulnerabilities," said Vishnu Varathan, an analyst at Mizuho Bank. Foreign visitors to the country surged in 2022 from a year ago, with the country's vital tourism sector set for a further boost from a recently approved $120 million budget. China's abrupt dismantling of its strict COVID measures has driven a recovery in risk appetite in Asia in recent weeks, with Thailand, Singapore and Malaysia emerging as the top beneficiaries. Malaysia's ringgit rose 0.4%, the South Korean won firmed 0.3% and the Indian rupee was up marginally by 0.1%. Singapore's dollar rose 0.4% with data showing December core inflation came in slightly higher than the forecast. "Our view for the Monetary Authority of Singapore (MAS) to further tighten monetary policy in April 2023 remains unchanged," said Barnabas Gan, senior economist at RHB Singapore. Investor focus will be on the country's budget on Feb. 14 for hints on medium-term priorities for the economy, Maybank said in a note. The dollar index weakened in Asia after data showed U.S. business activity shrank for a seventh straight month. Markets expect a 25 bps rate hike from the Federal Reserve in February. Most regional markets resumed trading after a holiday-extended weekend, though China, Taiwan and Hong Kong remained shut. The Pakistani rupee fell by 1.2% against the U.S. dollar after foreign exchange companies removed an upper cap on the currency, saying it was creating "artificial" distortions in the market. Meanwhile, Sri Lanka's central bank held interest rates steady in a widely expected move, saying the prevailing tight monetary stance is crucial to taming still-high inflation and restoring economic stability. Indonesia's rupiah slipped 0.5%, reversing a sharp 1.2% jump on Tuesday. The country's central bank last week signalled an early end to its tightening cycle. Asian equities rose even as the extended market closure in China capped volumes. MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.2%, holding below a seven-month peak. Singapore's Straits Times index was 1.5% higher after earlier hitting its highest since May 5 and Seoul shares climbed 1.4%. Philippines stock rose 0.6% after a delayed opening on Wednesday due to a technical issue, while the Thai stocks were steady at 0.2%. Indian shares fell 1.2%, Jakarta stocks were down 0.5% and Malaysian shares declined 0.2%. HIGHLIGHTS: ** Thailand's central bank raised its key interest rate by 25 basis points on Wednesday, as it attempts to curb high inflation even as the return of Chinese tourists brightens the country's economic growth prospects ** Indonesia's foreign direct investment surged 44.2% on a yearly basis in 2022, the investment minister said on Tuesday, noting 2023 would be a more difficult year to attract investment ** Thailand's exports contracted more than expected in December and only modest growth was expected for 2023 with a strong baht currency hurting trade competitiveness, the commerce ministry said Asia stock indexes and currencies at 0725 GMT COUNTRY FX RIC FX FX INDE STOCK STOCK DAILY YTD % X S S YTD % DAILY % % Japan -0.16 +0.58 <.N2 0.35 4.98 25> China EC> India +0.08 +1.31 <.NS -1.24 -1.17 EI> Indones -0.50 +4.04 <.JK -0.47 -0.32 ia SE> Malaysi +0.45 +3.19 <.KL -0.19 0.13 a SE> Philipp +0.04 +2.05 <.PS 0.57 7.84 ines I> S.Korea 11> Singapo +0.33 +1.88 <.ST 1.69 3.02 re I> Taiwan -0.12 +1.12 <.TW 0.04 5.62 II> Thailan -0.14 +5.46 <.SE 0.20 1.06 d TI> (Reporting by Savyata Mishra in Bengaluru; Editing by Eileen Soreng)