*

Indonesian stocks rise, rupiah flat

*

MSCI EM Asia anchored around July 2021-peak

*

Investors position for a central bank-heavy week

*

China stocks up 0.2%, S.Korea stocks up 0.6%

*

Philippine stocks down 1%, lowest since mid-April

By Sameer Manekar

Sept 15 (Reuters) -

Emerging Asia equities were off to a measured start on

Monday, while Indonesia stocks gained for a fourth session, as

investors positioned for a pivotal week of central bank meetings

that many expect will see the U.S. Federal Reserve's return to

rate cuts.

The MSCI gauge of emerging market equities in Asia

was anchored around a July 2021 peak. Stocks in

China and South Korea, which make up just over

half of the index, edged higher.

Investors will be keenly watching a busy slate of central

bank meetings this week, including in the United States, Japan,

Taiwan, and Indonesia, as well as in developed economies such as

England, Canada, and Norway.

The main focus will be on the Fed, which is widely expected

to cut rates by a quarter point on Wednesday, and its language

around its policy trajectory this year. Markets have begun to

factor in as many as three rate cuts by the end of

2025.

"The upcoming Fed policy meeting is undoubtedly one of the

most important ones in recent times and can have a bearing on

the market outlook," said Vasu Menon, managing director,

investment strategy at OCBC in Singapore.

"With an abundance of liquidity on the sidelines and in the

absence of a recession, Fed rate cuts could prove to be a

tailwind for markets as history has often shown."

Lower U.S. interest rates are beneficial to emerging market

assets as a weaker dollar eases external financing pressures,

supports their currencies, and attracts capital flows into their

higher-yielding bonds and equities.

Indonesia's benchmark index advanced 0.8% to a

one-week high, recovering most of its losses from earlier last

week when the sudden departure of Indonesia's reputed finance

minister drove foreign investors out of its equities.

The rupiah also hovered around 16,400 a dollar and

government bonds rallied, with the yield on the 10-year

at a two-week low of 6.321%.

Markets widely expect Bank Indonesia to hold its key

interest rate at 5.00% on Wednesday after two back-to-back cuts,

primarily to avoid any volatility in the rupiah in the wake of

shocks from recent protests and the unexpected cabinet

reshuffle.

"With the USD-IDR pair currently buoyant above 16,400, BI is

unlikely to add fuel to the fire by proceeding with another cut,

even as it is still looking for room to ease," said Vishnu

Varathan, Mizuho's head of macro research for Asia ex-Japan.

Taiwan's equity benchmark index slipped 0.3% after

scaling record peaks most of last week, and its dollar

ticked lower to 30.287 per U.S. dollar.

Analysts also expect Taiwan's central bank to stand pat on

its key rate on Thursday.

Singapore's FTSE Straits Times hovered around its

record high, while stocks in Manila fell 1% to their

lowest since mid-April, dragged by financials and real estate

firms.

Markets in Malaysia and Japan were

closed for a public holiday.

HIGHLIGHTS:

** China's economy slumps in August as consumer, export

demand sags

** Singapore banks slip; DBS Group down 0.4%

** Indonesia's Bank Central Asia and Bank Mandiri

up 1%

Asia stock indexes and currencies at 0404 GMT

COUNTRY FX RIC FX DAILY FX YTD INDEX STOCKS STOCKS

% % DAILY YTD %

%

Japan +0.20 +6.66 - -

China India +0.01 -3.01 -0.09 6.12

Indones -0.12 -1.86 0.78 11.80

ia

Malaysi - +6.38 - -2.57

a

Philipp -0.33 +1.41 -0.96 -7.32

ines

S.Korea Singapo +0.08 +6.56 0.00 14.70

re

Taiwan -0.16 +8.21 -0.49 10.05

Thailan -0.16 +8.01 0.00 -7.62

d