MONEY MARKETS-Mostly relief and small moves in swaps after Fed

* US swaps rise, Malaysian, Hong Kong swaps fall after Fed

* Fed leaves market comfortable receiving front end rates

By Vidya Ranganathan

SINGAPORE, Aug 13 (Reuters) - Dollar swaps rose and some Asian interest rate swaps fell on Thursday after the Federal Reserve's upbeat assessment of the U.S. economy, although these minor market moves paled against the rally in stocks and other risky assets.

In some sense, the Fed's policy review was a relatively modest event when compared with the Bank of England's shock announcement of an increase in liquidity support earlier this month and Norway's central bank's explicitly hawkish statement on Wednesday.

The Fed left its near-zero policy rate on hold and reiterated its commitment to low rates for an extended period of time. The only slightly surprising element in its policy was its decision to gradually phase out its $300 billion Treasury purchase programme while extending its life by one month to October.

But the Fed's assessment that the economy was levelling, in particular a removal of its earlier reference to a contracting economy, was what drove risky assets higher and the dollar down.

Dollar swaps rose, but appeared to be correcting slightly after a sharp fall in the days preceding the Fed meeting when market participants were trying to pare their pricing of how aggressive the Fed would be in removing its policy stimulus.

One-year dollar overnight indexed swaps USDOIS were at 0.48 percent, a rise from 0.45 on Thursday but still below the 0.6 percent struck last Friday.

"As long as people are confident that the Fed are not going to do anything rash, then receivers at the front end of the curve can be quite comfortable," said Sean Keane, a director of Triple T Consulting and formerly a money markets strategist at Credit Suisse.

Most segments of the dollar market seemed to be adjusting positions after the moves of the past few days when they were taking out their expectations of future policy tightening.

Eurodollar futures fell, with the December 2009 contract pricing in 3-month LIBOR at 0.63 percent, nearly 5 bps lower than on Wednesday.

Swap markets in some parts of Asia saw receivers emerge and drive down rates, although traders said the move was an extension of the drop in bond yields this week alongside a sell off in stock markets.

In Hong Kong, the one-year interest rate swap HKDIRS fell to 0.52 percent from 0.61 on Wednesday. Malaysian one-year swaps MYRIRS hit 2.24 percent, falling from 2.32 on Tuesday. (Editing by Tomasz Janowski)