(Updates at 0140 GMT)

By Ankur Banerjee

SINGAPORE, Sept 24 (Reuters) - Asian stocks rose on

Tuesday to their highest in more than two and half years,

boosted by a slew of Chinese stimulus measures while

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

and the dollar under pressure.

In an eagerly awaited press conference, China's top

financial regulators unveiled a slate of measures, saying it

would cut bank reserves by 50 basis points while reducing

mortgage rates to try to spur sluggish economic growth.

The moves sent Chinese stocks higher, with the blue-chip

CSI300 Index opening 1% higher, while the broader

Shanghai Composite index was also up 1% at the open.

Hong Kong's Hang Seng Index jumped over 2% in early

trading, with the mainland properties index surging 5%.

That pushed MSCI's broadest index of Asia-Pacific shares

outside Japan 0.41% higher to 588.43, levels

last seen in April 2022.

"While there was some anticipation that stimulus measures

would be announced after they mentioned there was going to be a

press briefing, the package of measures so far, I would say, is

probably larger than what market was expecting," said Khoon Goh,

head of Asia research at ANZ.

"Taken as a whole, this could help support the economy.

Whether or not it is sufficient to address some of the

underlying issues, particularly around the lack of confidence in

the economy, I think still remains to be seen."

Meanwhile, investor focus will also be on the Reserve Bank

of Australia's policy decision later in the day when it is

widely expected to stand pat on rates although 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 Nov. 5 meeting

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

Japan's Nikkei was the biggest mover in early

trading, soaring 1.4% to a near three-week high ahead of an

eagerly awaited speech by Bank of Japan Governor Kazuo Ueda.

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

continued to digest the Fed's big move, with policymakers

explaining the need for the 50 bp cut.

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

central bank will go for another 50 bp cut or a 25 bp 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

will support market sentiment and further undermine the dollar

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 Asia,

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 climbed 0.3% to $70.6.

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

economic data from Europe.

(Editing by Sam Holmes)