* 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)