* China stocks up for a third day
* China PMI due on Thursday
* Stocks in Manila top gainers in the region

By Echha Jain
       Aug 30 (Reuters) - Asian currencies were treading water
against the U.S. dollar, while equities jumped on Wednesday
after weak U.S. labour data cemented bets of a pause in interest
rate hikes by the Federal Reserve and on optimism over the
potential for additional stimulus in China.
    The Malaysian ringgit appreciated 0.1% while the Thai
baht weakened 0.3%. Equities in Shanghai
advanced 0.1%, rising for a third consecutive day, while stocks
in Manila jumped 0.9%, leading gains in the region.
    Overnight data from the U.S. showed job openings dropped to
the lowest level in nearly 2-1/2 years in July, signalling
easing labour market pressures and bolstering expectations that
the Fed will keep rates unchanged next month.
    Markets anticipate a 86.5% chance of the Fed standing pat,
the CME FedWatch tool showed. 
    "I think the market will start to reduce the probability of
another Fed rate hike and there could be rising chances of a Fed
rate cut around Q2/2024," said markets strategist Poon
Panichpibool at Krung Thai Bank.
    However, a much clearer economic picture will likely be
revealed later in the week when U.S. payrolls and personal
consumption expenditure reports are due.
    China's yuan slipped 0.2% as investors digested
the impact from state-owned banks' forthcoming move to lower
interest rates on existing mortgages as a part of government
efforts to revive the debt-laden property sector.
    "These cuts, if they come through, would be a welcome step
which may be able to release some consumption power," OCBC
analysts said in a note.
    China's central bank again set a much stronger than
anticipated official mid-point of 7.1816 a dollar, around 1,000
pips firmer than Reuters' estimate - action it has taken every
day since the middle of the month.
    "I would expect the yuan to remain supported and in the
medium to long term a recovery in the Chinese economy should
bode well for the yuan and correspondingly the Asian FX
currencies when that happens," said Saktiandi Supaat, head of FX
research at Maybank.
    Moreover, Chinese shares have gained this week following the
announcement of measures to lift investor confidence, including
halving the stock trading stamp duty, loosening margin loan
rules and putting the brakes on new listings.
    Investor focus will be on purchasing managers' index data
from China later this week that will indicate the state of the
economy.
    Elsewhere in Southeast Asia, Singapore's dollar
slipped 0.2% while equities in the city-state rose 0.1%.
    Singapore will hold a presidential election on Friday with
three candidates running for the largely ceremonial role.
        The rupiah strengthened 0.2% and stocks in
Jakarta gained 0.2%. Indonesia's central bank sees the
average rupiah exchange rate for next year at 14,600 to 15,100
against the U.S. dollar, and 14,800 to 15,200 for this year, its
governor said on Tuesday.
    The Philippine peso and Indian rupee were
flat against the U.S. dollar.

    HIGHLIGHTS:    
    ** Vietnam August exports slide, but factory output improves
    ** BOJ policymaker signals chance of policy tweak early next
year
    ** Philippines ramps up efforts to curb rice inflation,
ponders price controls    
    
 Asia stock indexes and currencies at                       
 0423 GMT                                             
 COUNTRY   FX RIC           FX     FX  INDEX  STOCKS  STOCKS
                       DAILY %  YTD %          DAILY   YTD %
                                                   %  
 Japan                   -0.23  -10.3  <.N22   0.7     23.4
                                    3  5>             
 China                   -0.15  -5.36  <.SSE    0.06    1.57
                                       C>             
 India                   -0.02  -0.01  <.NSE    0.41    7.28
                                       I>             
 Indonesi                +0.16  +2.20  <.JKS    0.24    1.81
 a                                     E>             
 Malaysia                +0.13  -5.11  <.KLS    0.15   -2.60
                                       E>             
 Philippi                -0.02  -1.90  <.PSI    0.90   -4.35
 nes                                   >              
 S.Korea                 +0.02  -4.33  <.KS1    0.63   14.84
                                       1>             
 Singapor                -0.20  -0.90  <.STI    0.14   -0.73
 e                                     >              
 Taiwan                  +0.07  -3.62  <.TWI    0.62   18.31
                                       I>             
 Thailand                -0.30  -1.45  <.SET    0.60   -5.42
                                       I>             
 
    
 (Reporting by Echha Jain in Bengaluru; Editing by Christopher
Cushing)