EMERGING MARKETS-Asian shares rise on Chinese stimulus, FX subdued in thin trade

(.) * Dull trade across Asia on account of U.S. holiday * Chinese stimulus measures boost sentiment By Archishma Iyer Sept 4 (Reuters) - Most Asian stocks rose on Monday following stimulus measures from China to prop up its ailing economy and rising bets of a pause in U.S. interest rate hikes, even as currencies were muted in thin trading. Domestic sentiment received a boost in China on fresh stimulus measures, with the limelight on the property and real estate sectors, but analysts believe more should be done. Separately, a rise in the unemployment rate in the United States countered a pick up in jobs growth on Friday, signalling that the Fed may not raise rates at its September meeting. Most Asian shares advanced, with equities in Manila, Singapore , Seoul and Jakarta gaining between 0.2% and 1%. However, currencies were subdued, with the Singaporean dollar rising around 0.1%, while the Chinese yuan edged slightly higher. "The market can still be quite worried about some other factors," said Gary Ng, Senior Economist, Asia Pacific with Natixis. "If you look at the U.S. dollar, we haven't really seen a very faster softening sign to that end." "The yield differential between the dollar and Asian currencies will continue to be one of the key drivers in determining their performance, and it really depends on the market expectation about the Fed going forward even though a lot of central banks in Asia will probably put rates on hold," he added. The dollar index, which measures the strength of the greenback against six major currencies, was at 104.1 at 0640 GMT, but remained close to its two-month peak of 104.44. Markets believe there is 93% chance that the Fed will pause rates this month, with 67% odds of the central bank ending its tightening cycle. Locally, investors will watch for inflation data from China, Thailand and the Philippines this week, while Malaysia is set to reveal its key policy rate. Markets in the United States were closed for a public holiday. HIGHLIGHTS: ** Indonesia's benchmark 10-year bond yield steady at 6.383% ** UPDATE 2-Malaysia drops corruption charges against PM Anwar's ally ** INDIA STOCKS-Indian shares rise on hopes of Fed rate pause, China stimulus Asia stock indexes and currencies at 0640 GMT COUNTRY FX RIC FX FX YTD INDEX STOCKS STOCKS DAILY % % DAILY YTD % % Japan +0.05 -10.30 0.70 26.23 China +0.01 -5.05 1.27 2.71 India -0.01 -0.01 0.25 7.62 Indonesia -0.03 +2.13 0.31 2.17 Malaysia -0.17 -5.44 0.02 -2.12 Philippin -0.16 -1.68 0.32 -5.57 es S.Korea -0.08 -4.19 0.81 15.57 Singapore +0.05 -0.99 0.16 -0.40 Taiwan -0.11 -3.72 0.87 18.76 Thailand -0.17 -1.66 -0.63 -7.01 (Reporting by Archishma Iyer in Bengaluru; Editing by Sonia Cheema)