EMERGING MARKETS-Turkish assets rise, rest of emerging markets subdued ahead of central bank meetings

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 .XU100 jumped over 4%, set for its best day in over two months, while the lira TRY= 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 .MSCIEF 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 CNH= was flat.

Chinese equity gauges .HIS, .CSI300, .SSEC 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 ILS= fell 0.2% to an over one-week low while equities .TA125 rose 1%.

In central and eastern Europe, Romanian stocks .BETI 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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