EMERGING MARKETS-Emerging Asian stocks rebound post China stimulus efforts; FX mixed

* Thai and Indonesia stocks lead gains in Asia * Analysts say China's $137 bln stimulus boosted Asia FX * South Korean won, stocks slide By Poonam Behura Oct 25 (Reuters) - Emerging Asian stocks bounced back on Wednesday, with currencies mixed, as investor sentiment improved after China approved a trillion-yuan sovereign bond issue in an effort to support the world's second-largest economy. Equities in Thailand and in Indonesia gained 1.1% and 0.7%, respectively, with stocks in Bangkok snapping a three-day losing streak. China's top parliament body approved a 1 trillion yuan ($137 billion) sovereign bond issue and passed a bill to allow local governments to frontload part of their 2024 bond quotas. Chinese stocks advanced, gaining 0.4%, whereas the yuan slipped 0.1% as a stronger greenback outweighed benefits from the fiscal stimulus. "China's step-up in fiscal support for the economy provided a modest boost to Asian assets earlier today," said Fiona Lim, senior FX strategist at Maybank. "However, gains in regional FX may not last long without further evidence of an economic recovery in China and if the weakness in the property sector continues to weigh on growth." Thailand reported trade data on Tuesday, which unexpectedly rose for a second straight month in September. Prime Minister Srettha Thavisin defended his government's economic stimulus measures on Tuesday, saying they were aimed at addressing short-term needs like reducing the cost of living. Michael Wan, a senior currency analyst at MUFG, said markets are seeing some green shoots in Asia, including in Thailand, Vietnam and South Korea, in terms of higher-than-expected exports and manufacturing data. The baht, which has been one of the major underperformers among emerging currencies this year, slipped 0.1% against the dollar. Other currencies in the region dropped as well, with the Indonesian rupiah and Singapore dollar edging 0.2% and 0.1% lower, respectively. The South Korean won slipped 0.5%, while domestic shares fell 0.9%. The country is set to report its advance estimates for third-quarter GDP on Thursday. U.S. Treasuries held onto a bounce-back after the 10-year yield breached 5% on Monday, with the benchmark yield firm at 4.82%. Separately, in the Philippines, the central bank governor said the bank remained open to an off-cycle policy rate hike, which could happen as early as its weekly review on Thursday. "I think Philippines is probably closest to hiking rates reflecting domestic inflation pressures," MUFG's Wan said. Bangko Sentral ng Pilipinas (BSP) is scheduled to conduct its official monetary policy review on Nov. 16. The peso was trading 0.1% lower. Asia stock indexes and currencies at 0735 GMT COUNTRY FX RIC FX FX INDE STOCK STOCK DAILY YTD % X S S YTD % DAILY % % Japan +0.01 -12.5 <.N2 0.67 19.83 3 25> China EC> India +0.05 -0.52 <.NS -0.69 5.77 EI> Indones -0.18 -1.95 <.JK 0.67 0.03 ia SE> Malaysi +0.13 -7.89 <.KL 0.53 -3.49 a SE> Philipp -0.07 -2.04 <.PS 0.24 -7.80 ines I> S.Korea 11> Singapo -0.08 -2.15 <.ST -0.17 -5.32 re I> Taiwan -0.13 -5.10 <.TW 0.30 15.71 II> Thailan -0.07 -4.38 <.SE 1.20 -15.6 d TI> 4 HIGHLIGHTS: ** Philippines' supply-side inflation needs no monetary response - econ planning minister ** Indonesia's Prabowo pledges to continue development of downstreaming, new capital ** Thai PM defends economic stimulus measures Asia stock indexes and currencies at 0744 GMT COUNTRY FX RIC FX FX INDEX STOCKS STOCKS DAILY % YTD % DAILY YTD % % Japan +0.02 -12.5 <.N22 0.67 19.83 2 5> China -0.08 -5.68 <.SSE 0.40 -3.73 C> India +0.05 -0.52 <.NSE -0.97 5.46 I> Indonesi -0.19 -1.95 <.JKS 0.63 -0.02 a E> Malaysia +0.13 -7.89 <.KLS 0.51 -3.51 E> Philippi -0.09 -2.06 <.PSI 0.24 -7.80 nes > S.Korea -0.49 -6.31 <.KS1 -0.85 5.67 1> Singapor -0.07 -2.13 <.STI -0.17 -5.31 e > Taiwan -0.17 -5.13 <.TWI 0.30 15.71 I> Thailand -0.04 -4.35 <.SET 1.09 -15.73 I> (Reporting by Poonam Behura in Bengaluru; Editing by Simon Cameron-Moore and Sonia Cheema)