EMERGING MARKETS-Asia stocks measured ahead of key central bank meetings, Fed rate cut

By Sameer Manekar

Sept 15 (Reuters) - Emerging Asia equities traded prudently on Monday, with Indonesian stocks extending gains into a fourth session, ahead of an action-packed week of key central bank policy meetings that could see the U.S. Federal Reserve resume its easing cycle.

The MSCI gauge of emerging market equities in Asia .MIMS00000PUS dipped lower in afternoon trade, but was anchored around a July 2021 peak. A subset of ASEAN equities .MISU00000PUS also lingered around a February 2020 high.

Stocks in China .SSEC slipped 0.3% on weak economic data, while South Korea's KOSPI index .KS11 inched up to a fresh all-time high, driven by the government scrapping its plan to raise taxes on stock investment. The won KRW=KFTC firmed 0.6%.

Investors will be keenly watching a busy slate of central bank meetings this week, including in the United States, Japan, Taiwan, Indonesia, England, Canada, and Norway.

"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."

Indonesia's benchmark index .JKSE advanced 0.8% to a one-week high. The rupiah IDR= hovered around 16,400 a dollar, while government bonds rallied, with the yield on the 10-year ID10YT=RR at a two-week low of 6.321%.

Markets widely expect Bank Indonesia to hold its key interest rate at 5.00% on Wednesday, primarily to avoid any volatility in the rupiah in the wake of shocks from recent protests and the unexpected cabinet reshuffle.

Thailand's stocks .SETI were rangebound through the day, while the baht THB=TH slipped the most in more than six weeks to 31.920 per dollar.

The country's new prime minister on Monday said the baht's strength needs to be urgently addressed, as he faces an uphill task of turning around an economy grappling with U.S. tariffs, high household debt, slackening tourism, and weak consumption.

The baht is up 7.5% this year, making it the second-best performing currency in Asia after Taiwan's dollar. That strength, deemed "unnecessary" by market participants, undermines Thailand's export competitiveness and its tourism sector.

Singapore's FTSE Straits Times .STI slipped but lingered around its record high, while stocks in Manila .PSI fell about 1% to their lowest since mid-April.

Markets in Malaysia .KLSE, MYR= and Japan .N225 were closed for a public holiday.

HIGHLIGHTS:
** China's economy slumps in August as consumer, export demand sags
** Thai industries federation says baht at 34-35 per dollar will be more appropriate
** Indonesia's Bank Central Asia BBCA.JK and Bank Mandiri BMRI.JK up 1%
** Indonesia announces new 16.23 trillion rupiah stimulus package to boost economy for Q4 2025