*

EM stocks up 0.4%, FX flat

*

US, China in deal for TikTok to keep operating in US

*

Fed rate decision due at 1800 GMT

*

Indonesia cuts rates by 25 bps

*

South Africa CPI falls 3.3% in Aug

By Pranav Kashyap

Sept 17 (Reuters) - Most emerging market stocks crept

higher on Wednesday while currencies were steady, as investors

counted down to an expected rate cut from the U.S. Federal

Reserve and awaited signals on the extent of future easing.

Markets have priced in a 25-basis-point cut, with analysts

calling the cut a non-event. The focus will be the Fed's "dot

plot", which could reveal just how aggressive the central bank

might get in slashing rates amid a cooling labour market and

mounting political pressure from the White House.

Traders are betting on nearly 68 basis points of easing by

year-end, according to LSEG data.

A key index of EM stocks was set for a ninth

straight session of gains, fuelled by expectations that lower

U.S. borrowing costs will give EM central banks room to follow

suit.

"It depends on the path of where the Fed is going, and

that's been a real leg up for emerging markets because the more

Fed cuts, the more EMs will be able to cut their own rates,"

said David Nicholls, EM portfolio manager at East Capital.

"If the Fed can keep delivering, the music can keep playing

for emerging markets."

Currencies in central and eastern Europe were marginally

lower against the euro, with the Hungarian forint

easing from an over one-year high touched recently.

Ukraine's international dollar bonds nudged higher. Reuters

reported that the Trump administration's first weapons aid

packages for Ukraine have been approved and could soon be

shipped.

The South African rand slipped 0.2%, and Johannesburg

stocks fell 0.5% as investors digested data that showed

inflation unexpectedly slowed in August. The South African

Reserve Bank is widely expected to hold rates steady at 7% on

Wednesday.

Meanwhile, Indonesia's central bank delivered a surprise

sixth rate cut since launching its easing cycle last September,

citing the need to shore up economic growth.

Jakarta stocks closed at a record high, while the

rupiah was flat against the dollar.

The divergence in rate actions by emerging markets central

banks could add uncertainty to the global rate outlook, with

everything riding on the Fed's policy trajectory.

Hong Kong stocks hit a four-year high, powered by

tech and a surge in confidence around China's AI ambitions, with

news of a TikTok breakthrough adding fuel to the rally.

As Chinese equities gain favor, investors are increasingly

looking beyond U.S. assets for growth and diversification.

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see