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EM ASIA FX-Asia yield-hunting back on dovish Fed; won, rupiah near 2-wk peaks

* Won jumps on stop-loss dlr selling; intervention suspected
    * Rupiah near 2-wk high; Indonesia c.bank seen cutting rates
    * Ringgit over 1-wk peak on strong oil, Malaysia govt bonds

 (Adds text, updates prices)
    By Jongwoo Cheon
    SINGAPORE, Sept 22 (Reuters) - Most emerging Asian
currencies rallied on Thursday after the U.S. Federal Reserve
left interest rates on hold and slowed the pace of further
hikes, encouraging investors to seek higher yields in the
region.
    South Korea's won jumped to its strongest level
in almost two weeks on stop-loss dollar selling. It gave up some
of those gains as official intervention was suspected after a
warning against further appreciation. 
    The Indonesian rupiah also hit a near two-week high
as local stocks and bonds rose with the central bank expected to
cut interest rates later in the day. 
    Malaysia's ringgit advanced to its strongest level
in more than a week as higher crude prices eased concerns over
the country's oil and gas revenue.
    The Fed on Wednesday suggested it could raise rates by
year-end if the labour market improved further, but cut the
number of rate increases expected in 2017 and 2018. It also
reduced its longer-run interest rate forecast to 2.9 percent
from 3 percent. 
    That boosted risk sentiment, lifting Asian stocks and bonds.
    "The Fed was more dovish than the market expected," said Qi
Gao, FX strategist for Scotiabank in Singapore.
    "EM Asian currencies will benefit from global excess
liquidity chasing higher returns, domestic reflationary policies
and improved market sentiment," he said. 
    The won and the ringgit will lead regional gains as the
South Korean currency is more sensitive to risk sentiment and
the Malaysian unit is tracking oil prices, Gao said.
        
    WON
    The won jumped as much as 1.8 percent to 1,100.5 per dollar,
its strongest since Sept. 9, on expectations of rising demand
from exporters for settlements.
    The South Korean currency, emerging Asia's best performer
this year, pared some gains as foreign exchange authorities were
suspected of intervening to stem further appreciation, traders
said. The authorities were spotted around 1,101, they added.
    That came as the finance ministry said it will adopt
"appropriate responses" to prevent one-sided moves in domestic
financial markets. 
    "If exporters accelerate unloading dollars, the won may
strengthen to around 1,080. But it may be locked in a range
between 1,080 and 1,120, given the authorities' focus on
reducing volatilities," said a South Korean bank trader in
Seoul.
    
    RUPIAH
    The rupiah rose 0.5 percent to 13,075 per dollar, its
strongest since Sept. 9.
    Indonesia's shares advanced nearly 1 percent after
foreign investors on Wednesday were net buyers of local equities
following nine straight sessions of selling.
    The Indonesian currency may try to strengthen past the
previous high of 13,055, analysts said.
    Still, caution grew over possible intervention by the
central bank to curb the currency's strength, especially around
13,070-13,080, traders said.
    "A potential rate cut could attract more bond inflows, but
the 13,070-80 is the most BI will tolerate," said a
Jakarta-based currency trader, referring to Bank Indonesia.
    
    RINGGIT
    The ringgit gained as much as 0.9 percent to 4.0970 per
dollar, its strongest since Sept. 13.
    The Malaysian currency found further support as government
bond prices rose.
    The ringgit is seen trying to break through a chart
resistance at a 200-day moving average of 4.0899 with the
previous technical resistance area of 4.1200-4.1300 becoming a
supporting zone, analysts said.
    
    CURRENCIES VS U.S. DOLLAR
    Change on the day at 0445 GMT
  Currency                 Latest bid   Previous day  Pct Move
  Japan yen                    100.30         100.33     +0.02
  Sing dlr                     1.3532         1.3540     +0.06
  Taiwan dlr                   31.400         31.430     +0.10
  Korean won                  1103.30        1120.10     +1.52
  Baht                          34.65          34.75     +0.29
  Peso                         47.850         47.890     +0.08
  Rupiah                        13095          13134     +0.30
  Rupee                         66.86          67.02     +0.25
  Ringgit                      4.1080         4.1350     +0.66
  Yuan                         6.6691         6.6660     -0.05
                                                              
  Change so far in 2016                                       
  Currency                 Latest bid  End prev year  Pct Move
  Japan yen                    100.30         120.30    +19.94
  Sing dlr                     1.3532         1.4177     +4.77
  Taiwan dlr                   31.400         33.066     +5.31
  Korean won                  1103.30        1172.50     +6.27
  Baht                          34.65          36.00     +3.90
  Peso                          47.85          47.06     -1.65
  Rupiah                        13095          13785     +5.27
  Rupee                         66.86          66.15     -1.05
  Ringgit                      4.1080         4.2935     +4.52
  Yuan                         6.6691         6.4936     -2.63
 

 (Reporting by Jongwoo Cheon; Additional reporting by Yena Park
in SEOUL and Reuters FX Analyst Rick Lloyd; Editing by Richard
Borsuk)
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