* Asian emerging currencies largely unchanged, equities
mixed
* Chinese yuan appreciates 0.2%

By Himanshi Akhand
       Oct 18 (Reuters) - Asian emerging currencies were
largely steady on Wednesday after better-than-expected economic
data from China suggested the world's second largest economy was
stabilising, but investors held off making large bets as tension
flared in the Middle East.
    The Chinese yuan appreciated 0.2% and was set for
its best day in nearly four weeks.
    Malaysia's ringgit pared some losses and was last
down about 0.1%, after falling as much as 0.3% to hit its lowest
level in over 11 months earlier in the session.
    South Korea's won edged up 0.3% while Indonesia's
rupiah dipped 0.1%.
    Data showed that China's gross domestic product grew 4.9% in
the September quarter from a year earlier, beating analysts'
expectations for a 4.4% increase but slower than the 6.3%
expansion in the second quarter.
    Moreover, industrial production and retail sales data both
rose in September and beat investor expectations, suggesting the
Chinese economy is stabilising thanks to a recent slew of policy
measures.
    "Even though the data is better than expected, it does also
indicate that the economy is not turning around very sharply,"
Alvin Tan, Head of Asia FX strategy at RBC Capital Markets said.
    "It is not a powerful recovery at all, and on top of that
problems in the property market persists, so the impact of
today's data is relatively limited."
    Meanwhile, risk aversion increased as Middle East tensions
escalated after about 500 Palestinians were killed in a blast at
a Gaza hospital, which Israeli and Palestinian officials blamed
on each other. 
    Adding to market jitters, Jordan cancelled a summit with
U.S. President Joe Biden, Egyptian and Palestinian leaders.
    The news contributed to a surge in oil prices as investors
worried about potential supply disruptions.  
    The Israeli shekel was largely unchanged at 4.014 per
U.S. dollar, while the Turkish lira hit a record low
of 28.05 against the dollar.
    "The geo-political tensions are still very high and
difficult to sort in the near term. Moreover, the fact that U.S.
data continues to be quite strong means continuing upside risks
on Asian assets," RBC's Tan added.
    MSCI's broadest index of Asia-Pacific shares outside Japan
 was 0.1% lower. Stocks in China,
Indonesia, Malaysia and Singapore fell
between 0.2% and 0.6%.  
    
        
HIGHLIGHTS
    ** IMF says China property slowdown will weigh on Asia's
growth 
    ** The South Korean and Indonesian central banks are
expected to leave interest rates unchanged when the they hold
policy meetings on Thursday, according to Reuters polls
    ** Indonesian ruling party puts respected minister on
election ticket
    
 
  Asia stock indexes and currencies                       
 at 0453 GMT                                        
 COUNTRY   FX RIC          FX     FX  INDE  STOCKS  STOCKS
                      DAILY %  YTD %     X   DAILY   YTD %
                                                 %  
 Japan                  +0.08  -12.4  <.N2  -0.11   22.63
                                   1  25>           
 China                               EC>           
 India                  +0.04  -0.61  <.NS    0.10    9.53
                                      EI>           
 Indonesi               -0.13  -1.05  <.JK   -0.24    1.06
 a                                    SE>           
 Malaysia               -0.08  -7.13  <.KL   -0.10   -3.53
                                      SE>           
 Philippi               +0.04  -1.87  <.PS   -0.12   -4.46
 nes                                  I>            
 S.Korea                             11>           
 Singapor               +0.01  -2.04  <.ST   -0.64   -3.07
 e                                    I>            
 Taiwan                 +0.08  -4.84  <.TW   -1.04   16.50
                                      II>           
 Thailand               +0.03  -4.80  <.SE    0.71  -13.49
                                      TI>           
   

    
        

    
 (Reporting by Himanshi Akhand in Bengaluru; Editing by Sonali
Paul)