*

EM stocks mostly flat, currencies hold steady

*

Turkish assets gain after Ankara court delays ruling on

opposition leader

*

Indonesia unveils economic stimulus package worth almost

$1 bln

By Twesha Dikshit and Pranav Kashyap

Sept 15 (Reuters) - Emerging market equities were

largely subdued on Monday ahead of a week filled with central

bank meetings, with the Federal Reserve expected to resume its

reducing cycle, while Turkish assets rose after a court

adjourned a ruling on ousting the country's main opposition

party's leader.

Istanbul's main share index jumped over 4%, set for

its best day in over two months, while the lira

see-sawed, having gained slightly after the adjournment. If the

currency stays in positive territory, it could snap a six-day

losing streak.

The country's bonds also rose on the day.

A court adjourned its ruling on annulling the 2023 congress

of the country's main opposition to October following months of

political turmoil that unsettled investors.

The latest ruling follows a September 2 court decision that

removed the Istanbul provincial head of the opposition

Republican People's Party, citing irregularities at a local

party congress.

"The political tension did not evaporate completely, but at

least for some time the tension will ease and markets will

concentrate on the economy," said Strateji Portfolio

Management's Okan Alpay.

"The market sees this (delay) in a positive way."

Meanwhile, a broad gauge tracking emerging market equities

was flat on the day but hovered at four-year highs as

attention swung to the Fed's two-day meeting starting on

Tuesday.

Markets have fully priced a 25-basis point cut, after a

nine-month pause, with Fed members' "dot plot" projections for

rates and guidance from Chair Jerome Powell set to shape

expectations for the pace of further easing.

Investors see a quarter-point move as the base case, while a

minority still leans toward a bolder 50-bp cut.

Asian markets got a jolt from Jakarta. Indonesian stocks

climbed 1% after the government unveiled a 16.23 trillion rupiah

($989 million) economic stimulus package to be implemented in

the fourth quarter. The rupiah slipped 0.2% as bonds rallied,

pushing the 10-year yield to a two-week low of 6.321%.

All eyes now turn to Wednesday's Bank Indonesia meeting,

where rates are widely expected to stay unchanged at 5% - a

cautious pause after last week's protests and the finance

minister's ouster rattled local assets.

In China, data showed the economy slumping in August with

factory output and retail sales posting their weakest growth in

a year. Chinese equities were mixed while the yuan was

flat.

Chinese equity gauges,, edged up

about 0.3% each.

Meanwhile, the U.S. and China were close to an agreement on

TikTok with representatives of both countries meeting in Madrid

for a second day of talks in a bid to resolve trade tensions.

Elsewhere, the Israeli shekel fell 0.2% to an over

one-week low while equities rose 1%.

In central and eastern Europe, Romanian stocks fell

0.4%. Moody's Ratings maintained the country's investment grade

rating on Friday, pointing to recent deficit-reducing measures

approved by its new government, while keeping the outlook at

negative.

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