*

Japan, Indonesia, Thailand expected to hold rates

*

Rupiah falls for fifth straight session

*

Philippine stocks at lowest since early August

(Updates at 0710 GMT)

By Rajasik Mukherjee and Roushni Nair

Dec 17 (Reuters) -

Asian equities fell and the Indonesian rupiah and the Thai

baht led losses among currencies on Tuesday, as caution

prevailed ahead of key central bank decisions this week,

including a widely expected interest rate cut from the U.S.

Federal Reserve.

Shares in Manila fell for the fifth consecutive

session, falling 2.3% to their lowest since early August.

Equities in Jakarta and Shanghai declined by

0.9% and 0.7%, respectively. In currencies both the Thai baht

and the Indonesian rupiah declined 0.4%.

The rupiah has fallen beyond the psychologically important

threshold of 16,000 per U.S. dollar, which may impact Bank

Indonesia's (BI) monetary policy decision on Dec. 18, when

interest rates are expected to remain unchanged.

The rupiah logged its fifth straight session of decline and

has fallen more than 6% from its September peak despite central

bank intervention last week.

The dollar index held firm on Tuesday near recent

peaks, on the eve of an expected 25 basis point interest rate

cut in the United States, as traders ratchet long-term rate

assumptions higher.

OCBC currency strategist Christopher Wong said if the Fed

hints at two or fewer cuts in 2025, markets would read it as

"hawkish" and thus strengthen the greenback. However, if the Fed

sees three cuts next year, it would ease some pressure off

emerging market currencies.

On Dec. 19, the Bank of Japan is expected to hold current

interest rates, shifting from earlier market expectations of a

rate hike before year-end.

The Japanese yen ended its six-day decline with a

modest gain.

Central banks in Thailand and the Philippines are also

scheduled to announce their monetary policy decisions this week.

Bank of Thailand is widely expected to keep its rates steady

on Dec. 18, while the Bangko Sentral ng Pilipinas is set to cut

rates for a third consecutive time on Thursday, with further

cuts expected in 2025.

The peso gained as much as 0.2%.

Investors also assessed the mixed Chinese economic data

released on Monday as China's retail sales grew at its slowest

pace in three months, underwhelming the market and highlighting

the need for more stimulus ahead of potential U.S. trade

tariffs.

HIGHLIGHTS:

** US bond investors brace for 'hawkish cut,' spurn

long-term bonds

** China plans record budget deficit of 4% of GDP in 2025,

say sources

** Pakistan central bank cuts key rate by 200 bps, fifth in

a row

Asian stocks and currencies at 0710 GMT

Japan +0.09 -8.41 -0.24 17.63

China >

India -0.07 -2.02 Indonesia -0.40 -4.14 Malaysia -0.04 +3.10 Philippines -0.03 -5.88 -1.72 0.80

S.Korea 5 >

Singapore +0.01 -2.27 -0.54 17.29

Taiwan -0.08 -5.47 Thailand -0.41 -0.06