EMERGING MARKETS-Asian shares climb on Fed cut hopes; Thai central bank in focus

By Roshan Thomas

Aug 13 (Reuters) - Asian equities rose on Wednesday, led by gains in Indonesia and Malaysia stocks, as softer U.S. inflation data bolstered hopes of a Federal Reserve rate cut in September, lifting risk appetite among investors.

Shares in Jakarta .JKSE rose as much as 1.4%, to the highest level since mid-September 2024, while those in Kuala Lumpur .KLSE advanced 1.5%.

The equity market in Singapore .STI added 1%, and shares in Taipei .TWII rose 0.3%. The broader MSCI gauge of Asian emerging market equities .MIMS00000PUS rose 0.3%.

The Thai stock market reopened after a two-day public holiday, with the benchmark .SETI up 1% ahead of the Bank of Thailand's rate decision due later on Wednesday.

Overnight data showed U.S. consumer prices rose modestly in July, in line with expectations, and U.S. equity benchmarks closed at record highs as President Donald Trump's sweeping tariffs have so far not affected the price of goods much. .N

"It's clear that almost any good news leads investors to pile money into markets, particularly tech stocks, despite their lofty price tags," Paco Chow, dealing manager at trading platform Moomoo said in a note.

"Investors are riding on 95% odds of a Fed rate cut in five weeks and feeling comfort that inflation is only creeping higher, not running amok."

Investor confidence in the dollar was further dented after the White House said President Donald Trump was weighing legal action against Fed Chair Jerome Powell over his handling of renovations at the central bank's headquarters.

Despite the dollar's decline, Asian currencies were little changed, with the Indonesian rupiah IDR= and Malaysian ringgit MYR= up 0.3% and 0.2% each, while the Taiwan dollar TWD=TP edged 0.1% higher and the Thai baht THB=TH was flat.

The Bank of Thailand (BOT) is expected to cut its key interest rate by 25 basis points to 1.5%, according to a Reuters poll, to support a slowing economy, after having kept rates steady in June.

Sluggish private consumption, weak consumer confidence, high household debt, and slower foreign tourism have piled pressure on the BOT to take action.

Meanwhile, stock markets in India .NSEI rose 0.3% while the rupee INR=IN held steady, a day after data showed inflation eased to 1.55% in July from 2.10% in June.

HIGHLIGHTS:

** Malaysia's top court dismisses appeal against jailed ex-PM Najib's house arrest bid

** US Treasury's Bessent says India has been 'recalcitrant' in trade talks