(Updated at 0816 GMT)

*

China factory output, new home prices fall; retail sales

rise

*

Philippine central bank cuts rates by 25 bps

*

U.S. retail sales due Thursday

*

Rand at one-month high

By Lisa Pauline Mattackal

Aug 15 (Reuters) - Emerging market stock indexes were

mixed on Thursday after economic data in China cast doubt on a

recovery in the world's second-largest economy, while the

Philippine peso recouped ground after its central bank cut

interest rates.

Closely watched June factory output data in China slowed for

a third straight month, below analysts' forecasts while separate

data showed July new home prices fell at the fastest pace in

nine years. However, July retail sales quickened more than

expected.

"Despite the slight beat of expectations, there was not too

much to cheer in this month's data," said Lynn Song, chief

economist, greater China at ING.

The weak data, however, raised expectations for more

government stimulus, which helped lift Chinese stocks

0.9%.

"However, it is uncertain if policymakers have found a

suitable fit in terms of specific policies to implement on this

front yet," Song said.

The Philippine peso reversed earlier losses and was

little changed against the dollar after its central bank eased

its key interest rates by 25 basis points to 6.25%, while

flagging easing inflation. Expectations had been split between a

rate cut and no change.

China's data was the latest in a series of key releases this

week, with emerging market investors also closely eyeing key

economic figures from the U.S. for signals on global economic

growth.

U.S. retail sales are on deck, a day after in-line inflation

data kept bets on a September start to Federal Reserve rate cuts

firm.

Equity indexes were mixed, with Turkey's Bist 100

down 0.2%, South African stocks up 0.7% and the PX

Prague Index up 0.2%.

Meanwhile, Russia's rouble continued to recover

ground against the dollar, rising 1% even as Ukraine continued

its advance into the Kursk region.

The euro hovered around seven-month highs touched

Wednesday, rising 0.1% against the Czech crown.

South Africa's rand touched a one-month high of

18.011 per dollar, while the Turkish lira hovered

around a record low.

MSCI's index of emerging market stocks edged down

0.1% while an index of broader currencies was

flat.

In Asia, Thai markets weakened with the baht down

0.2% and stocks dipping 0.4% as worries about political

turmoil increased following Wednesday's dismissal of Prime

Minister Srettha Thavisin.

Elsewhere, a group representing foreign holders of

Ethiopia's $1 billion international bond said on Wednesday it

was disappointed with recent government comments regarding a

possible 20% principal haircut on their holdings.

The eurobond, was little changed on Thursday

after slipping 0.75 cent on Wednesday.

Local markets in South Korea, India, Poland, and Romania

were closed for holidays.

HIGHLIGHTS:

** Summer market shock not quite over as investors brace for

more turmoil

** PBOC injects $81 bln, delays MLF as seen re-aligning rate

framework

** Indonesia's July trade surplus at 14-mth low on surge in

imports

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see