*

Equities mixed; Seoul gains on dividend tax hopes

*

Thai stocks rise up to 0.9%

*

U.S. dollar weakens ahead of economic data

By Rishav Chatterjee

Sept 29 (Reuters) - The Indonesian rupiah rebounded on

Monday from a near five-month low as the central bank kept up

its guard to ensure the currency's stability, while most Asian

peers edged higher against a wobbly U.S. dollar.

Equities in emerging Asia rose slightly as investors

assessed the fallout of a possible shutdown of the U.S.

government that would threaten release this week of jobs data,

key for markets to bet on the Federal Reserve's easing path.

Those concerns kept pressure on the U.S. dollar index, which

slipped 0.2% against a basket of major currencies.

"The shutdown can hinder the release of the key

government-produced data, such as the NFP, and result in more

focus on the other indicators," Maybank analysts said in a note.

An MSCI index of EM Asia equities added 1%,

largely driven by South Korea's KOSPI, which rebounded

more than 1% from Friday's two-week low on hopes of

dividend-friendly tax reforms.

Hong Kong-listed shares of Tencent ( TCTZF ) and Alibaba ( BABA )

jumped up to 3% each.

In Southeast Asia, Indonesia's currency rose up to

0.5%, to stand at 16,650 against the dollar, after ending last

week near its weakest since April 30.

That depreciation of about 0.9% prompted the central bank to

intervene in financial markets to stabilise the currency.

Bank Indonesia's surprise rate cut, its "burden sharing"

deal with the government, and the abrupt exit of a respected

finance minister are fuelling investor fears about political

interference.

That has raised doubts about the central bank's independence

and the credibility of economic policy in Southeast Asia's

largest economy.

"The rupiah will continue to be volatile in the short term,

given increased political noise, lower policy visibility, and

headline risk," said Massimiliano Bondurri, founder and CEO of

SGMC Capital.

"This being said, for long-term investors current levels are

attractive to enter the currency and take advantage of recent

depreciation."

Indonesia is due to issue this week inflation data for

September, though the central bank's shifting focus on growth

implies it could have little bearing on the monetary policy

stance.

Analysts broadly expect 50 basis points of rate cuts over

the next two quarters.

Elsewhere, the Malaysian ringgit, Singapore dollar

, and the Philippine peso firmed between 0.2% and

0.1%.

The Thai baht meandered around 32.25 a dollar,

while South Korea's won gained 0.7% and the Chinese

yuan rose 0.2%.

Among equity markets, the benchmark index in Manila

fell 0.2%, while those in Jakarta and Singapore

added between 0.2% and 0.6%.

Stocks in Thailand surged as much as 0.9%, as the

new prime minister outlined measures to fire up a sluggish

economy.

HIGHLIGHTS:

** Yield on Indonesia's 10-year bonds ticks

higher to 6.435%

** US tariffs threaten $3.1 billion of Singapore's pharma

exports, trade talks ongoing

** Thailand to step up China cooperation, lines up economic

stimulus

Asia stock indexes

and currencies at

0435 GMT

COUNTRY FX RIC FX DAILY FX YTD % INDEX STOCKS STOCKS

% DAILY YTD %

%

Japan +0.40 +5.56 -0.68 14.63!

China India -0.01 -3.50 0.34 4.63

Indonesi +0.30 -3.51 0.61 15.09

a

Malaysia +0.21 +6.13 0.00 -2.03

Philippi +0.08 +0.04 -0.20 -7.87

nes

S.Korea Singapor +0.12 +5.88 0.16 12.81

e

Taiwan - +7.32 - 11.05

Thailand +0.00 +6.49 0.38 -8.33