* Shanghai stocks jump 2.1% for the week
* PBOC to cut banks' FX reserve ratio
* U.S. Aug payrolls data due later in the day

By Echha Jain
       Sept 1 (Reuters) - Most Asian currencies were muted on
Friday, while equities jumped after China stepped up efforts to
stabilise the yuan. Further, investors awaited U.S. jobs data
later in the day for clues on the Federal Reserve's future rate
hike path.
    The Malaysian ringgit and Philippine peso were
flat against the U.S. dollar, while the Indonesian rupiah
fell 0.2%. 
    Equities in Kuala Lumpur and Manila advanced
0.6% and 0.4%, respectively.
    The Chinese yuan slipped 0.1% after strengthening
0.3% earlier in the day, while equities in Shanghai
jumped 0.2%. 
    The country's central bank said it will cut the amount of
foreign exchange that financial institutions must hold as
reserves for the first time this year, a move seen aimed at
slowing the pace of recent yuan depreciation.
    "The RMB interest rate will edge up so that the interest
rate gap between the U.S. and China will narrow, supporting the
yuan," said Zhaopeng Xing, senior China strategist at ANZ
Research.
    Moreover, China's factory activity surprisingly returned to
expansion in August, a private-sector survey showed, with
supply, domestic demand and employment improving, suggesting
official efforts to revive growth might be having some effect.
    "These are the early signs of stabilisation," said Xing,
adding that factory activities will be boosted by the new
electronics launch season and improved domestic demand going
forward.
    Additionally, data overnight showed U.S. consumer spending
increased the most in six months in July, but slowing monthly
inflation rates cemented expectations that the Federal Reserve
would keep interest rates unchanged next month. 
    U.S. August payrolls data later in the day could offer more
clues. Markets are now anticipating an 89% chance of the Fed
standing pat this month, the CME FedWatch tool showed.  
    Elsewhere in Southeast Asia, the Thai baht weakened
0.2%. Thailand's central bank said on Thursday its economic
recovery remained on track in July as private spending increased
and the tourism sector expanded on higher foreign tourist
arrivals, while exports declined.
    The Indian rupee jumped 0.2%. Data showed India's
economy grew at its quickest pace in a year in the April-June
quarter but a drier-than-normal monsoon season could restrain
future growth.

    HIGHLIGHTS:    
    ** Asia's factory activity weakens, China's rebound offers
some hope
    ** Country Garden to delay key vote as China rolls out more
support
    ** Philippines President Marcos sets ceiling on rice prices 
    
    
  Asia stock indexes and currencies                         
 at 0351 GMT                                          
 COUNTRY   FX RIC           FX     FX  INDEX  STOCKS  STOCKS
                       DAILY %  YTD %          DAILY   YTD %
                                                   %  
 Japan                   +0.05  -9.87  <.N22   0.5     24.7
                                       5>             
 China                   -0.08  -5.03  <.SSE    0.23    1.23
                                       C>             
 India                   +0.22  +0.14  <.NSE    0.00    6.34
                                       I>             
 Indonesi                -0.20  +2.03  <.JKS    0.29    1.79
 a                                     E>             
 Malaysia                -0.04  -5.15  <.KLS    0.58   -2.35
                                       E>             
 Philippi                +0.04  -1.64  <.PSI    0.41   -5.57
 nes                                   >              
 S.Korea                 +0.10  -4.24  <.KS1    0.12   14.44
                                       1>             
 Singapor                +0.02  -0.81  <.STI    0.41   -0.55
 e                                     >              
 Taiwan                  -0.05  -3.65  <.TWI    0.30   18.02
                                       I>             
 Thailand                -0.16  -1.30  <.SET   -0.01   -6.17
                                       I>             
 

    
 (Reporting by Echha Jain in Bengaluru; Editing by Sohini
Goswami)