SINGAPORE, Sept 24 (Reuters) - Asian stocks were perched

at their highest in more than two months on Tuesday as

expectations for more U.S. rate cuts kept risk sentiment aloft,

while investors awaited a policy decision from Australia's

central bank.

In an eagerly awaited press conference, China's top

financial regulators including the central bank unveiled a slew

of measures to aid the stuttering economy, including moves to

reduce mortgage rates for existing homes.

The Reserve Bank of Australia is widely expected to stand

pat on rates but the Federal Reserve's 50 basis point cut last

week has raised some expectations Australia could follow the

Fed.

"The RBA is likely to stick to its hawkish stance for now,

aiming to keep inflation expectations anchored," said Charu

Chanana, head of currency strategy at Saxo.

"A potential pivot may come only at the November 5 meeting

depending on further labour market data and the Q3 CPI report."

That has left the markets steady, with MSCI's broadest index

of Asia-Pacific shares outside Japan 0.04%

higher at 586.31, levels last seen on July 15.

Japan's Nikkei was the biggest mover in early

trading, soaring 1.69% to a near three-week high ahead of an

eagerly awaited speech by Bank of Japan Governor Kazuo Ueda.

China's central bank on Monday lowered its 14-day repo rate

by 10 basis points, days after disappointing markets by not

cutting longer-term rates.

Overnight, the U.S. stocks closed modestly higher as traders

digested the Fed's big move last week, with policymakers

explaining the need for the 50 bp cut.

"I am comfortable with a starting move like this - the 50

basis point cut in the federal funds rate announced last

Wednesday - as a demarcation that we are back to thinking more

about both sides of the mandate," Chicago Fed President Austan

Goolsbee said. "If we want a soft landing, we can't be behind

the curve."

Markets are currently evenly split on whether the U.S.

central bank will go for another 50 bps cut or a 25 bps cut in

November, CME Fedwatch tool showed. They are pricing in 76 bps

of easing this year.

Brown Brothers Harriman Senior Markets Strategist Elias

Haddad said the market is overestimating the Fed's capacity to

ease. "However, it will likely take strong U.S. jobs data to

trigger a material upward reassessment in Fed funds rate

expectations."

The next non-farm payrolls report is due Oct. 4 and until

then, Haddad said a more dovish Fed and a strong U.S. economy

offer financial market risk sentiment support and can further

undermine the dollar mostly against growth-sensitive currencies.

The dollar index, which measures the U.S. currency

against six rivals, was at 100.95, not far from the one-year low

of 100.21 touched last week. The yen was little

changed at 143.65 per dollar.

The euro was steady at $1.11055 in early Asian

hours, having dropped about 0.5% on Monday as business activity

reports for the euro zone economy disappointed, raising

expectations for more interest rate cuts by the European Central

Bank this year.

The Australian dollar was 0.15% lower at $0.6828

but hovering close to the nine month high it touched on Monday.

In commodities, oil prices were slightly higher in early

trading, with Brent crude futures up 0.26% at $74.09 a

barrel, while U.S. crude futures 0.3% higher at $70.6.

Oil prices had slid on Monday on demand worries as well as weak

economic data from Europe.

(Editing by Sam Holmes)