* China Evergrande winding-up hearing adjourned as it seeks new debt deal
* Russian rouble extends gains after central bank rate hike
* Stocks up 0.4%, FX add 0.1%
Oct 30 (Reuters) - Most emerging markets stocks edged up and currencies were muted on Monday in cautious trade ahead of a widely-anticipated interest rate decision by the U.S. Federal Reserve, while investors kept a wary eye on developments in the Middle East.
Following a broadly in-line inflation reading the previous week, traders expect the U.S. central bank to leave borrowing costs on hold on Wednesday, while continuing to assess possibilities of a rate hike towards the end of the year.
"A hawkish hold should be a rather neutral outcome, as it is widely expected," said Bartosz Sawicki, market analyst at Conotoxia fintech.
"The EM space might feel the pain if the U.S. economy continues to outperform and wage pressure comes in above markets' expectations."
Asset classes in developing markets have recently come under pressure from rising U.S. Treasury yields and a strengthening dollar as market participants price in interest rates remaining elevated for much longer than previously expected.
MSCI's index tracking emerging markets stocks was up 0.4%, underpinned by a 0.6% gain in China's blue-chip stocks .
Investors took comfort from fresh signs that Beijing was undertaking measures to put a floor under a sliding stock market.
Meanwhile, Hong Kong stocks closed the session flat, weighed down by a 9.8% loss in China Evergrande Group after a domestic court gave the embattled property developer a five week reprieve to come up with a deal with creditors or face liquidation.
Meanwhile, a basket of emerging markets currencies edged up 0.1% against the dollar by 0914 GMT.
Keeping a lid on gains was the war between Israel and Hamas as investors were on edge about the potential of a widening Middle East conflict and its repercussions on oil supply from the region as Israel expanded its ground offensive in Gaza.
The Russian rouble extended its climb and traded at 93.2 to the dollar after the local central bank's surprising key rate hike by 200 basis points to 15% on Friday.
The South African rand added 0.5% with focus on the government's mid-term budget statement on Wednesday for clues on the health of Africa's most advanced economy.
Among eastern and central European currencies, the Hungarian forint led gains against the euro, adding 0.4%, while the Czech crown was muted ahead of a monetary policy decision due later in the week.
Elsewhere, Pakistan's rupee strengthened 0.6% ahead of a central bank rate decision, where economists broadly expect the bank to keep borrowing costs on hold. (Reporting by Johann M Cherian in Bengaluru; Editing by Emelia Sithole-Matarise)
