*

EM stocks, FX down 0.2% each

*

South Korea inflation up 1.7% in August

*

Polish c. bank starts two-day rate setting meeting

*

Indonesian equities rebound

By Pranav Kashyap

Sept 2 (Reuters) - A gauge tracking emerging market

stocks and currencies was slightly lower on Tuesday as investors

braced for U.S. data that could potentially redraw the Federal

Reserve's interest rate map.

The MSCI index for emerging market stocks and a

similar gauge for currencies were down 0.2%

each.

Most equities in central and eastern Europe were trading

lower, with a broad index for the region down

1.5%.

Polish stocks extended losses for a fifth straight

session, sliding 1.1% to an over two-month low and setting up

their longest losing streak of the year.

The National Bank of Poland kicked off a two-day meeting and

is widely expected to trim rates by 25 bps to 4.75% on

Wednesday.

Yet nerves persist over what comes next as Polish

policymakers were balancing softer-than-expected inflation

against widening budget deficits that could complicate the path

ahead.

The zloty slipped 0.1%, snapping a three-day

winning streak against the euro.

Meanwhile, in the U.S., with the dynamics of the labour

market under the microscope, investors are waiting for a run of

data that could potentially recalibrate expectations for the

Fed's next move.

Job openings and private payrolls data are due on Thursday,

followed by nonfarm payrolls on Friday, with August inflation

data scheduled for September 11.

Indonesian stocks rebounded 1.3% - the biggest

intraday pop in two weeks, marking the first climb since

thousands of protesters clashed with police near parliament late

last week.

"Renewed protests in Indonesia remain possible, but we

expect tensions to ease as conciliatory government measures take

effect," UBS analysts said.

"While uncertainty may linger in the near term, we think

compressed valuations have opened up opportunities to

buy-the-dip in select high-quality dividend stocks."

Bonds were slightly lower, but the rupiah was steady,

supported by Bank Indonesia's recent interventions in the

currency market.

South Korean stocks rose nearly 1% after August

inflation slowed to a nine-month low, data showed. Traders were

currently pricing in an almost 70% probability of a 25 bps rate

cut during the central bank's October meeting, according to LSEG

data.

Indian stocks gave up early gains to last

trade marginally lower. The country's top lender, State Bank of

India plans to raise funds by issuing

dollar-denominated bonds, days after S&P Global Ratings upgraded

the country's sovereign credit rating.

Elsewhere, Chinese equities cooled from multi-year highs hit

recently. Shanghai stocks eased 0.4%, while Hong Kong's

Hang Seng Index was down 0.5%.

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see