* Malaysian ringgit hits two-week high
* European c.bank meet eyed later in global day
* Most Asian shares rise

By Archishma Iyer
       July 27 (Reuters) - Most Asian currencies were edging upwards on
Thursday, with the Malaysian ringgit gaining the most, after the U.S. Federal
Reserve delivered an expected 25 basis points (bps) rate hike, with market
participants reading Fed Chair Powell's tone as more "moderate". 
    The U.S. Federal Reserve has raised rates for the 11th time in the last 12
times that it has met and kept the benchmark overnight interest rate in the
5.25%-5.50% range. It will now continue to assess the possibility of more rate
hikes in future.
    "From a rates perspective, the FOMC outcome was already well telegraphed,"
analysts from DBS said in a research note, "A 25bps hike with the door open for
more, but with Fed Chair Powell not quite insisting on further hikes makes for a
more moderate tone." 
    The dollar index, which measures the strength of the greenback
against six major rivals, dropped almost 0.2% to 100.91 at 0645 GMT.
    A rate peak in the United States will lead investors to lean on
risk-sensitive, higher-yielding Asian assets, while cementing stances of some
Asian banks which had opted for a pause.
    Thailand's central bank is likely to hike its key policy rates by 25 basis
points for the last time in August, in tandem with the Fed, and is set to pause
until 2025, as the outlook on price pressures and economic growth continue to be
uncertain, according to a Reuters poll. 
    Earlier this week, Bank Indonesia had held its rates steady for the sixth
straight month as expected, while keeping its current growth projections for
2023 unchanged in a range of 4.5% to 5.3%. 
    Moreover, investors will also look for additional cues on monetary policy
from the European Central Bank later in the global day, where it expected that
the central bank will hike for the ninth straight time. 
    Back in the region, the ringgit triumphed over other Asian peers,
rising as much as 0.5%, hitting a two-week high to trade at 4.526 per dollar. 
    Other currencies such as the Thai baht, Singapore dollar,
Philippines peso and the Indonesian rupiah were trading between
0.1% and 0.2% higher. 
    "The lower-yielding currencies in Asia had suffered at the hands of a
hawkish Fed. But this does not necessarily mean they would rebound more now that
the Fed is done," Joey Chew, Head of Asia FX Research at HSBC said in a research
note.
    "As for the higher-yielding currencies in Asia (like IDR), we think these
will remain resilient."
    Separately, most Asian equities gained, with shares in Seoul,
Singapore, Taiwan and Thailand rising between 0.5% and
0.7%. 

    HIGHLIGHTS:    
    ** Indonesia's benchmark 10-year bond yield rises TO 6.265%
    ** Thailand's political flux keeps investors on edge 
    ** UPDATE 3-Singapore's UOB positive on net interest income after Fed hike
 
         
    
    
 Asia stock indexes and currencies at 0645 GMT
 COUNTRY       FX RIC          FX     FX     INDEX  STOCKS  STOCKS
                          DAILY %  YTD %             DAILY   YTD %
                                                         %  
 Japan                      +0.14  -6.36             0.68   26.04
 China                                                     
 India                      +0.01  +0.89             -0.18    9.05
 Indonesia                  +0.01  +3.68             -0.20    1.22
 Malaysia                   +0.49  -2.76              0.19   -2.91
 Philippines                +0.09  +2.05             -0.20    1.52
 S.Korea                                                   
 Singapore                  +0.15  +1.25              0.67    2.33
 Taiwan                     +0.04  -1.70              0.46   21.96
 Thailand                   +0.22  +1.45              0.77   -7.93
 

 (Reporting by Archishma Iyer in Bengaluru; Editing by Nivedita Bhattacharjee)