* Philippine stocks eye best day since Aug. 25 * Broader Asian equities track global rally * RBI rate decision, U.S jobs data awaited By Harish Sridharan Oct 8 (Reuters) - Indonesian shares hit their highest since January on Friday, a day after the country passed a major tax overhaul bill aimed at boosting revenue, while Chinese equity markets rose on their return from a one-week holiday. Asia"s emerging market stocks benefited from a rise in global risk appetite as Washington approved legislation to temporarily raise the debt limit and avert a default. Regional currencies, however, weakened as benchmark U.S Treasury yields firmed to their highest since June ahead of a key jobs report in the United States. "The risk-on tone pervading across Asia is driven largely by the development on the U.S. budget deficit," said Nicholas Antonio Mapa, senior economist at ING. Jakarta shares rose as much as 1.3% after the country"s parliament approved a law for one of its most ambitious tax overhauls, including raising value-added tax (VAT) next year, a new carbon levy and cancelling a planned corporate tax cut. Analysts at Mizuho noted that there will be some short-term impact from the tax overhaul, especially from the increase in VAT, which will push inflation higher while slowing private consumption. "More fundamentally, these changes are a step in the right direction as they help broaden Indonesia"s relatively narrow tax base," they added. Stocks in Manila rallied and were on course to notch their best session in six weeks, while Malaysia, Thailand and Singapore also edged higher. Indian shares rose ahead of the country"s central bank meeting, where policymakers are widely expected to keep the repo rate unchanged to support recovering growth. Market participants were also closely watching out for U.S jobs data, which could provide fresh clues into the Federal Reserve"s tapering timeline. Chinese equities rose 0.3% on their return from a week-long hiatus, with tourism stocks adding 4.2% and leading the way in the domestic bourse. Still, the focus remains on the property sector as investors wait to see if regulators take action to contain the contagion from cash-strapped Evergrande"s debt crisis. Meanwhile, currencies in Asia traded flat to lower, with the South Korean won and Thai baht leading losses in the region. HIGHLIGHTS ** Indonesian 10-year benchmark yields are up 1.7 basis points at 6.345% ** In the Philippines, top index gainer was BDO Unibank Inc , up 5.17% ** Top gainer on the Jakarta stock index was Pudjiadi And Sons Tbk PT, up 24.83% Asia stock indexes and currencies at 0412 GMT COUNTRY FX RIC FX FX YTD INDEX STOCKS STOCKS DAILY % % DAILY YTD % % Japan -0.24 -7.71 1.81 2.68 China -0.02 +1.23 0.33 3.08 India +0.00 -2.29 0.43 27.79 Indonesia -0.08 -1.31 0.88 8.26 Malaysia +0.05 -3.83 0.29 -3.77 Philippines +0.14 -4.80 1.37 -1.30 S.Korea -0.26 -8.99 -0.13 2.86 Singapore +0.01 -2.72 0.13 9.19 Taiwan -0.18 +1.71 -0.40 12.99 Thailand -0.35 -11.62 0.33 13.09 (Reporting by Harish Sridharan; editing by Richard Pullin)