* Chinese yuan strengthens 0.2%
    * South Korean stocks rise 0.5%
    * Bank of England policy decision due at 1200 GMT

    By Indranil Sarkar
    Nov 4 (Reuters) - Most Asian currencies were largely flat on Thursday after
the U.S. Federal Reserve said it would not rush to raise interest rates but
approved plans to start unwinding its stimulus programme, while China's yuan
touched a near one-week high.
    The Fed announced on Wednesday that it would trim its bond-buying by $15
billion a week from this month, while leaving open the option to quicken or slow
the pace as needed, but signalled it would stay patient before raising borrowing
costs. 
    "The Federal Reserve finally accepted the economy has made enough progress
to start slowing the rate of Quantitative Easing (QE) purchases," analysts at
ING wrote in a note.
    "The economy is re-accelerating and inflation will hit 6%, meaning that
pressure on the Fed to end QE early and hike rates will undoubtedly grow."
    The yuan firmed 0.2%, reflecting broad dollar weakness in global
markets sparked by a somewhat dovish tone seen in the Fed's policy statement.
    Share markets across Asia firmed on Thursday, following the Fed's decision,
which analysts say could feel the pain of the taper decision more than other
regions.
    "Probably the elephant in the room will be China," Jeffrey Halley, Senior
Market Analyst, Asia Pacific at OANDA said, adding that if its slowdown
continues, a move to a looser monetary bias and a weaker Yuan would give "the
rest of Asia another headache", especially in currency markets.
    The Thai baht, Taiwan dollar and the Philippine peso
 were all largely flat.
    South Korean stocks rose 0.3% after falling 1.3% on Tuesday, buoyed
by technology giants Samsung Electronics and peer SK Hynix
 climbing 1% and 1.9%, respectively. The won slipped 0.1%.

    Stock markets in Singapore, Malaysia and India were closed on Thursday due
to a holiday. 
    Investors are now awaiting a Bank of England policy decision expected later
in the day that may kick off a rate hike cycle with uncertain implications for
debt markets globally.
    
    HIGHLIGHTS
    ** Indonesian 10-year benchmark yields are up 1.3 basis points at 6.2%​​
    ** Singapore's 10-year benchmark yield is up 9 basis points at 1.8%
    ** Malaysia, Singapore and India on holiday
    
   
 Asia stock indexes and currencies at 0727 GMT
 COUNTRY      FX RIC    FX DAILY %  FX YTD %  INDEX    STOCKS     STOCKS
                                                         DAILY %    YTD %
 Japan                  -0.20       -9.61              0.93       8.56
 China        <CNY=CFX  +0.20       +2.11              0.81       1.55
              S>                                                  
 India                  +0.00       -1.87              -100.00    -100.00
 Indonesia              -0.35       -2.13              0.64       10.29
 Malaysia               +0.00       -3.18              -0.41      -5.89
 Philippines            -0.02       -5.15              0.26       0.90
 S.Korea      <KRW=KFT  -0.08       -8.15              0.25       3.82
              C>                                                  
 Singapore              -0.12       -2.10              -0.39      13.22
 Taiwan                 -0.00       +2.26              -0.25      15.93
 Thailand               -0.30       -10.33             0.61       11.89
 

    
 (Reporting by Indranil Sarkar in Bengaluru; Editing by Sherry Jacob-Phillips)
  



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