GLOBAL MARKETS-Asia stocks rise as weak US data boosts Fed rate-cut bets

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Stocks rise following third day of gains for S&P 500

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Oil stabilises after fall on signs of Ukraine-Russia peace deal

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Sterling steady ahead of UK budget

By Gregor Stuart Hunter

SINGAPORE, Nov 26 (Reuters) - Asian stocks rose on Wednesday, chasing gains on Wall Street as weaker-than-expected economic data spurred expectations that the Federal Reserve will cut interest rates at its policy meeting next month.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 1%, after U.S. stocks ended the previous session with mild gains. Japan's Nikkei stock index tacked on 1.8%, while U.S. stock futures edged up 0.2%.

U.S. stocks reclaimed lost ground after a selloff earlier this month, with the S&P 500 and Nasdaq Composite rising for a third consecutive day on Tuesday after data showed retail sales rose less than expected and consumer confidence weakened, firming up expectations that the Fed will ease policy soon.

"There was a sea of green across major equity markets with futures pointing to a solid start to today's session in the local market," analysts from Westpac wrote in a research report.

"Sentiment received a boost amid increasing bets the U.S. Fed would cut again in December, following the decline in U.S. consumer confidence and soft retail trade numbers," the analysts said.

Fed funds futures are pricing an implied 80.7% probability of a 25-basis-point cut at the U.S. central bank's next meeting on December 10, compared to even odds a week ago, according to the CME Group's FedWatch tool.

The yield on benchmark 10-year Treasury notes rose to 4.0037% and was last trading slightly higher than the U.S. close of 4.002% after briefly breaking below the 4% threshold on Tuesday for the first time this month.

Oil prices steadied after sliding on Tuesday as President Volodymyr Zelenskiy said Ukraine was ready to advance a U.S.-backed peace plan, potentially paving the way for an unwinding of Western sanctions on Moscow's energy trade and adding more supply to the market.

Brent crude futures rose 0.3% to $62.68, stabilising after falling to a five-week low on Tuesday, while European energy prices reached the lowest in a year-and-a-half.

OPEC+ is meeting on Sunday and is likely to leave output levels unchanged, three OPEC+ sources said.

The European single currency was little changed on the day at $1.1564, having gained 0.3% in the past month.

The dollar rose 0.2% against the yen to 156.33, while the dollar index, which tracks the greenback against a basket of currencies of other major trading partners, was unchanged at 99.833.

Sterling was last trading flat at $1.3166 after four days of gains ahead of the UK government's budget, due later on Wednesday. Finance Minister Rachel Reeves will likely announce new tax increases in an attempt to maintain the confidence of financial markets against an expected downgrade of Britain's economic prospects.

The New Zealand dollar surged 0.9% to $0.5669 after the Reserve Bank of New Zealand cut benchmark interest rates by 25 basis points to 2.25% and reined in its earlier dovish guidance.

Australian shares gained 0.7% and the Australian dollar strengthened 0.2% after consumer prices rose at a faster-than-expected pace in October, reinforcing bets that the central bank's easing cycle could be over.

Spot gold was trading up 0.2% at $4,131.78 per ounce, while bitcoin rose 0.5% to $87,438.53. (Reporting by Gregor Stuart Hunter; Editing by Jacqueline Wong)