By Rishav Chatterjee
Sept 15 (Reuters) - Major Asian equity markets rallied on Friday, while emerging currencies were mixed after market-beating economic data from China added to expectations that global central banks were close to being done with their tightening cycles.
CNY=CFXS was the top gainer among emerging currencies in Asia, adding 0.1% to hit a two-week high against the U.S. dollar, following weeks of depreciation, while Chinese stocks .SSEC erased earlier gains to fall 0.6%.
China's industrial production and retail sales data beat estimates, with the upbeatsuggesting signs of an economic recovery.
"The improvement in August industrial production and retail sales is encouraging with recent data pointing to some stabilisation in economic activities which shall set a floor to yuan interest rates," OCBC analysts said.
Indonesia's stock market .JKSE added 0.4%, hitting an over one-week high, while shares in the Philippines fell 0.6%.
The peso PHP= fell 0.4% to its lowest in over a week.
Betty Wang, senior economist at ANZ, said she expects the Philippine central bank to keep the policy rate on hold at its policy meeting.
"However, it will continue to maintain its hawkish stand and stress its readiness to act if inflationary pressures intensify," Wang added.
Stocks in Seoul .KS11 jumped 1.1%, tracking a strong overnight Wall Street finish, to hit their highest in over a month, while the Singapore stock market .STI gained 0.9%, its highest since August 11.
Indonesia released bullish trade data of $3.12 billion in August, roughly double of what was expected.
Despite the positive , Indonesia's policymakers must remain cautious about currency volatility given expectations of a current account deficit and with U.S. Treasury yields rising, said Trimegah Economist Fakhrul Fulvian.
"We to ready for further depreciation of the rupiah."
The rupiah IDR= was down 0.1%.
The country's central bank is set decide on its policy rate Thursday, with Barclays analysts the risk of a rate hike to defend the currency.
The U.S. dollar index =USD, measuring its value against a basket of major currencies, last stood at 105.21, below Thursday's six-month peak of 105.43.
China's central bank rolled out a to defend the yuan. It, however, the reserve requirement ratio for all banks on Thursday for the second time this year, boosting liquidity while reducing yields on the currency.
Asia stock indexes and currencies at 0636 GMT
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** Indonesia Aug trade surplus at $3.12 bln, bigger than expected
** Singapore working with to build strong regional supply chains
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Simon Cameron-Moore and Sonia Cheema)