Sept 21 (Reuters) - Indonesian stocks pared losses on
Tuesday after its central bank affirmed growth targets, left
interest rates at a record low, and tried to allay fears about
the fallout from a potential tapering in stimulus by the U.S.
Federal Reserve.
    Other equities in the region rebounded from steep losses
seen in the previous session, even as worries about the impact
of debt troubles at China Evergrande loomed.
    Jakarta's benchmark index trimmed losses to trade
0.3% lower by 0730 GMT and the rupiah was about flat.
    Favouring an approach that does not pressure the rupiah,
Bank Indonesia (BI) said the impact of Fed tapering would not be
as severe as that seen during the U.S. central bank's hawkish
move in 2013, widely referred to as the "taper tantrum".

    BI Governor Perry Warjiyo said the country's low current
account deficit also insulated it from a jolt, and backed the
economy to grow between 3.5% to 4.3% this year.
    Indonesia has been on a tentative path to recovery from the
COVID-19 pandemic in recent weeks. It reported on Monday its
lowest daily case count since August 2020 and further eased
restrictions in Java and on its resort island Bali.
    "With inflation below the central bank's 2%-4% target, we
expect Governor Warjiyo to have all the necessary space to
retain his 'pro-growth' stance to support the recovery," said
Nicholas Mapa, a senior economist at Dutch bank ING.
    "We believe that BI will keep rates untouched for the
balance of 2021 given the current inflation and growth
    Stocks in the Philippines and Thailand
bounced off multi-week lows, while shares in Singapore
recouped some of the near 1% loss incurred in the previous
    Trading volumes were still slim as markets in China,
Taiwan and South Korea were shut, and gains were
limited by concerns of Evergrande defaulting on its massive debt
    Fears that the crisis could damage an already fragile
Chinese economy and spill over into broader financial markets
had sent Wall Street sharply lower overnight, though futures
pointed to a rebound in U.S. and European markets on Tuesday.

    "Equities are showing tentative signs of stabilisation this
morning, but Evergrande's situation remains highly volatile, and
markets may be enjoying only a short-lived respite before
China's markets reopen tomorrow," analysts at Dutch bank ING
    Most regional currencies inched higher against the U.S.
dollar after skidding in recent sessions, while investors held
out for updates on Evergrande as well as the Federal Reserve's
stimulus tapering before making further bets.
    ** Thailand's 3-year benchmark yield is up 2
basis points at 0.63%.
    ** Top loser on the Jakarta stock index is Capitol Nusantara
Indonesia, down 7%.
    ** In Thailand, the top index gainer was AQ Estate,
up 25%.    
       Asia stock indexes and                       
      currencies at 0741 GMT                      
                     DAILY   YTD %   X    DAILY   S YTD
                       %                    %       %
  Japan              -0.25   -5.85  <.N2  -2.17   8.73
  India              +0.10   -0.81  <.NS   0.22   24.71
 Indones             +0.00   -1.40  <.JK  -0.22   1.41
   ia                               SE>           
 Malaysi             +0.04   -4.02  <.KL  -0.06   -6.16
    a                               SE>           
 Philipp             +0.14   -4.21  <.PS   0.34   -3.62
  ines                               I>           
 Singapo             +0.10   -2.22  <.ST   0.56   7.56
   re                                I>           
 Thailan             -0.42   -10.4  <.SE   0.62   11.29
    d                          9    TI>