EMERGING Asian stocks and currencies jumped on Thursday as a hawkish tilt by the U.S. Federal Reserve matched expectations and encouraged investors with the view that policy tightening would not hinder growth.

       Hopes of more stimulus in China and progress in peace talks between Ukraine and Russia also aided sentiment and pressured the dollar, which was at risk of spurning its weeks-long momentum, as the Fed's statement lacked any tough surprises.

       The Indonesian rupiah climbed 0.3% before a meeting of the country's central bank, which is expected to leave interest rates at a record low. Thailand's baht rose 0.4%, while the Malaysian ringgit, the Singapore dollar, and the Taiwanese dollar also strengthened.

       In a widely expected move, the Fed raised its benchmark rate by a quarter of a percentage point from near zero, the first increase since 2018.

       "The market digested the FOMC outcome relatively well as Fed Chair (Jerome) Powell played down stagflation risks," said economists at DBS Bank.

       "The FOMC's statement was focussed on price pressures and yet comfortable that higher interest rates and quantitative tightening won't undermine the economic outlook materially."

       Despite the Fed's rate hike, market gains held up on signs of progress in the peace talks as the war entered its fourth week, and on China's plans to boost the economy and take steps seen as favourable to capital markets.

       Equities in Jakarta rose 0.6% to a record high, and those in China and Taiwan jumped more than 2.5% each.

       Bonds in the region also saw some pressure lift, with yields on high-returning Indonesian benchmark bonds falling 10 basis points to 6.739%.

       Emerging Asian bonds excluding China continued to see foreign inflows for a 21st straight month in February, though analysts were turning pessimistic about the outlook due to concerns over higher U.S. rates, soaring inflation and growing global fallout from the war in Ukraine.

       In Singapore, stocks gained nearly a percent even as data showed its non-oil domestic exports (NODX) in February grew less than expected.

       "With the global growth outlook dimming over the past few weeks, we can expect trade activity to slow further, with NODX likewise expected to see more moderation in the coming months," said Nicholas Mapa, an economist at ING Bank.

       South Korea's finance minister said authorities will strengthen efforts to stabilise the FX market should currency movements be excessive, and extend loosened curbs on currency forward positions for banks to at least the second quarter in case of dollar liquidity instability.

       The won, which has shed 2.3% this year, surged 1.4% to a near two-week high.

       HIGHLIGHTS: Top gainers on the Jakarta stock index include Apexindo Pratama Duta Tbk PT up 24.64% and Tanah Laut Tbk PT up 21.01% Top gainers on FTSE Bursa Malaysia Kl Index include Hartalega Holdings Bhd up 7.88% and Top Glove Corporation Bhd up 7.43%