SINGAPORE, Dec 14 — Most South-east Asian stock markets rose today, after the US Federal Reserve's comments tempered prospects for future tightening, while Singapore fell sharply after four sessions of gains.

While the Fed delivered on a rate increase that was already priced in by markets and kept its rate outlook unchanged for the coming years, it projected inflation to remain shy of its goal for another year, toning down expectations for policy tightening in 2018.

The US central bank's comments supported Asian shares, with MSCI's broadest index of Asia-Pacific shares outside Japan gaining 0.5 per cent.

Malaysian shares led the gains in South-east Asia, with a 0.9 per cent jump to an over eight-week high, buoyed by financials.

The World Bank raised its 2017 growth estimate for Malaysia's economy to 5.8 per cent, which would be the biggest annual expansion since 2014, buoyed by rising domestic demand and an improved labour market. The lender had projected a growth of 5.2 per cent in October.

Public Bank Bhd climbed 3.5 per cent to a record, while Malayan Banking Bhd and CIMB Group Bhd gained 2.2 per cent and 1.5 per cent, respectively.

Philippine shares rose as much as 0.4 per cent to their highest in over four weeks, after the Congress approved late yesterday a tax reform bill President Rodrigo Duterte needs to push ahead with his economic agenda.

Index heavyweights SM Investments Corp and SM Prime Holdings rose 1.6 per cent and 2.5 per cent, respectively.

The Philippine central bank is likely to leave its benchmark interest rate steady at its meeting today as inflation remains manageable, but a build-up in price pressures pointed to monetary tightening in 2018, a Reuters poll showed on Tuesday.

Indonesian shares firmed 0.6 per cent to a three-week high, on course for a third straight session of gains, while the index of the country's 45 most liquid stocks rose 0.8 per cent to a record.

Conglomerate Astra International Tbk PT rose 2.2 per cent while cement manufacturer Indocement Tunggal Prakarsa Tbk PT gained 5.7 per cent.

Meanwhile, Singapore shares succumbed to profit-taking after four straight winning sessions. The index fell 0.9 per cent, marking its biggest intraday percentage drop in over a week.

Banking stocks contributed more than half the declines on the index, with top lenders Oversea-Chinese Banking Corp, DBS Group and United Overseas Bank Ltd posting losses in a range of 1.2 per cent to 1.9 per cent.

Thai stocks gained as much as 0.5 per cent, hitting a two-week high. — Reuters