* Singapore surprise policy easing knocks wind out of Asian FX
* More stimulus hopes buoy risky assets; credit shines
* Greenback rebounds vs euro and yen
By Saikat Chatterjee
HONG KONG, April 14 (Reuters) - Asian stocks rose to their highest levels in more than four months on Thursday and regional currencies weakened led by the Singapore dollar as hopes grew that more central banks will join the city state in easing monetary policy in the coming months.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5 percent, reaching its highest level since Nov. 26. It has risen 5 percent since Friday, breaking above several resistance levels to signal further gains.
European shares were seen opening flat on Thursday, with bullish sentiment expected to keep European equities near their highest level in a month.
Singapore's central bank on Thursday surprised markets by setting the rate of appreciation of the Singapore dollar policy band at zero percent after data previously showed economic growth stalled in the first quarter.
"It's very interesting, and eye-catching, that the MAS has gone back to post-global financial crisis settings, and sends a strong message about the weak external environment," said Sean Callow, senior currency strategist at Westpac in Sydney.
"As one of the world's most trade-sensitive economies, Singapore's concern over a 'less favourable external environment' should be noted by the likes" of South Korea, Australia and New Zealand, Callow said.
Notwithstanding the optimistic trade data out of China on Wednesday, Singapore's policy decision is yet another reminder of the headwinds facing the global economy.
Earlier this week, the IMF cut its global growth forecast for the fourth time in the past year, citing a bunch of factors including chronic weakness in advanced economies.
Stock markets across the region were a sea of green led by Japan and Hong Kong as investors interpreted this as sign of more policy easing by the trade-dependent economies of South East Asia and a shallower trajectory of interest rate increases by the U.S. Federal Reserve in the coming months.
Overnight on Wall Street, the S&P 500 Index gained 1 percent to a four-month high after JPMorgan Chase's first quarter earnings fell less than expected, helping to lift the S&P 500 financial sector 2.2 percent. Stock index futures suggested a flat opening.
Risk appetite remained robust with an index of high yield debt settling at its highest levels since early December.
In the government bond markets, yields swung lower with the yield on the 30-year Japanese government bond briefly falling a record low of 0.385 percent. U.S. debt followed with yields on ten-year notes slipping to 1.75 percent.