* Dollar hits it lowest level in over two weeks

* S Africa's rand trading at strongest levels since Aug

* China's FX reserves fell to 1.5 year low in Oct.

Emerging stock and currency markets inched higher on Wednesday as investors took a positive view of U.S. midterm elections that gave Democrats the ability to thwart President Donald Trump but left Republicans firmly in charge of the Senate.

A dip in the dollar due to reduced expectations of more pro-business policy moves by Trump, which might soften the case for further rises in U.S. interest rates in the future, also benefited a number of major emerging currencies.

"There was some fear and risk of a sensational result today, but it has come out as expected. It is a good result for consistency in the market," said Nick Twidale, an analyst with Rakuten Securities in Sydney.

"We'll see a couple of days of risk-on trading on the back of these results. Then we'll go back to closely analysing the U.S.-China situation. The next time Trump speaks on trade, there will be a lot of attention on what he says."

The MSCI's benchmark emerging equity index .MSCIEF gained 0.58 percent, with Chinese equities .SSEC.CSI300 ending lower in choppy trade as an uncertain economic outlook outweighed government pledges of support for wavering markets. .SS

But the yuan CNY= , buffeted by concerns over Trump's aggressive trade moves against Beijing this year, recovered almost all of an early loss as the mood among financial investors globally turned more positive.

China's foreign exchange reserves fell to a one-and-a-half year low in October, suggesting authorities may be stepping up intervention amid mounting trade pressure. urn:newsml:reuters.com:*:nAZN00004W

Stock markets in emerging economies this year have fallen almost 14 percent, bearing the brunt of higher U.S. rates and worries over global growth and the U.S.-China stand-off on trade.

Hong Kong and Taiwan stocks outperformed their mainland Chinese counterparts, with the Hang Seng .HSI closing up 0.10 percent and Taiwan .TWII up 0.9 percent, at its highest in a little over two weeks.

The emerging market currency index .MIEM00000CUS was up about 0.3 percent, with the dollar continuing to slip as the session wore on. FRX/

South Africa's rand ZAR= firmed more than 1 percent to its strongest levels since August, while the Turkish lira TRY= edged back into positive territory and sent the country's dollar bonds to their highest since August. urn:newsml:reuters.com:*:nL8N1XI2SF

The Russian rouble RUB= was up by 0.3 percent, with data showing inflation accelerated in October. Stocks .IMOEX , however, declined as the market priced in lower oil prices and the prospect of more U.S. sanctions on Moscow.

The Polish zloty PLN= gained for the fifth straight session ahead of a central bank decision at which no rate change expected.