* Indian stocks up as much as 0.9%, hit 1-1/2-week high
* Broader Asian equities track global rally
* China shares gain after return from week-long holiday
By Harish Sridharan
Oct 8 (Reuters) - The Indian rupee hit its lowest in
five-and-a-half months on Friday, while stocks firmed, after its
central bank left key rates unchanged and reiterated the need to
unwind pandemic-era stimulus only gradually to aid a nascent
Other emerging market stocks in Asia benefited from a rise
in global risk appetite as Washington approved a legislation to
temporarily raise the debt limit and avert a default.
The Reserve Bank of India (RBI) kept interest rates steady
at a record low, as expected, and said accommodative monetary
policy was needed due to an uneven economic recovery from
The RBI's dovishness dashed expectations of investors hoping
it would hint at moving towards policy...