EMERGING MARKETS-Indonesia markets sink as Chinese moves hit Asia

    * Graphic: World FX rates
    * Graphic: Foreign flows into Asian stocks
    * Baht tracking worst day in two weeks
    * Rupiah down for third straight day
    * Malaysia stocks slip 1%

    By Shashwat Awasthi
    Sept 3 (Reuters) - Indonesia's rupiah eased further and its stocks tumbled almost 1% on
Thursday as worries over growth, its policy response and planned changes that analysts worry may
threaten the independence of its central bank all dented sentiment.
    The falls came on a rollercoaster morning for Asian shares, with stock markets across the
region lower as a report that China was planning sweeping policy changes to its semiconductor
industry to fight U.S. restrictions outweighed a batch of upbeat data from China.
    Stocks in Malaysia slipped 0.9%, while Singapore fell 0.8%.
    The rupiah gave up another 0.3%, taking weekly losses in South East Asia's weakest
currency this year to more than 1%, even after Bank Indonesia (BI) intervened to stabilize the
market on Wednesday.
    Proposals earlier this week for a new monetary policy framework that would shake up BI's
decision making and potentially give ministers a say on interest rates have shaken investors at
a time when the central bank is already aiding government fiscal stimulus efforts to back-stop
an emergency bond issuance scheme.
    Anthony Kevin, macro economist at Mirae Asset Sekuritas Indonesia, called the timing of the
proposals "very unfortunate" and said the widening of BI's mandate to include supporting
economic growth and jobs might disrupt the central bank's focus.
    "As the discussion over the draft bill is still in a preliminary stage, we expect the
pressures on rupiah to continue in the short to medium term," he said.
    Thailand's baht, hit by the sudden resignation of the finance minister this week,
also weakened for the second straight day, falling 0.6%.
    Most other regional currencies traded flat to slightly lower as the U.S. dollar bounced,
although a Reuters poll showed bullish bets on Asian units had risen after four straight months
of declines in the greenback.
    Philippine shares snapped a five-day losing streak and advanced 0.6% as the country's
unemployment rate dropped in July from a record high three months ago.
    ** Indonesian 10-year benchmark yields are up 3.8 basis points at 6.946%
    ** Top losers on the Jakarta stock index include Megapolitan Developments
down 7%, Alfa Energi Investama down 6.85% and Langgeng Makmur Industri down
    ** Top losers on FTSE Bursa Malaysia Kl Index include Hartalega down
7.16%, Genting down 2.2% and IOI Corporation down 1.99%
        Asia stock indexes and currencies at 0652 GMT                                 
    Japan                     -0.10       +2.18                     0.94            -0.81
    China                     -0.05       +1.78                    -0.77            10.77
    India                     -0.48       -2.73                     0.05            -5.16
  Indonesia                   -0.30       -6.12                    -0.96           -16.49
  Malaysia                    -0.05       -1.35                    -0.94            -4.13
 Philippines                  -0.04       +4.28                     0.60           -26.13
   S.Korea                    -0.24       -2.68                     1.33            9.02
  Singapore                   -0.14       -1.46                    -0.75           -21.78
   Taiwan                     +0.69       +2.67                     0.46            6.34
  Thailand                    -0.60       -4.78                     0.06           -16.66
 (Reporting by Shashwat Awasthi and Arpit Nayak in Bengaluru; Editing by Patrick Graham and Amy
Caren Daniel)