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Most EM currencies steady in lead-up to U.S. data



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Turkey inflation slows to 52%

U.S. payrolls data due on Friday

EM stocks down 0.3%, FX off 0.1%

By Shashwat Chauhan

Sept 3 (Reuters) -Most emerging market currencies were range-bound on Tuesday, as investors waited to see the dollar's moves during a week packed with global economic data, including a crucial U.S. jobs report.

Investors were focused on a U.S. ISM manufacturing survey due later in the day, while Friday's all-important August nonfarm payrolls (NFP) report could offer clues on the magnitude of an expected rate cut by the Federal Reserve later this month.

"We think the (ISM) reading should revert higher, further allaying fears over the state of the labour market, an outcome that should see the greenback extend gains heading towards Friday," analysts at Monex Europe wrote in a note.

Any clues on the state of the U.S. labour market will be carefully scrutinised, given Federal Reserve Chair Jerome Powell's dovish tilt last month, and his emphasis on the jobs markets.

Currencies in Central Eastern Europe (CEE) were largely muted, with Hungary's forint EURHUF=, Poland's zloty EURPLN= and the Czech crown EURCZK= all trading more or less flat against the euro.

Data showed Czech real wages increased for a second straight quarter in the April-June period, while Hungary's economy expanded 1.5% in the second quarter year-on-year.

Most currencies in Asia were lower, with Philippine's peso PHP= lagging with a 0.2% fall.

Turkey's lira TRYTOM=D3 slipped 0.3% against the dollar after official data showed Turkish inflation eased to 51.97% in August, just below expectations.

Nicholas Farr, emerging Europe economist at Capital Economics, said that while he sees continued disinflation in Turkey over the coming months, "there are signs in the breakdown that underlying inflation pressures remain strong and we still think that the central bank won't feel ready to cut interest rates this year."

South Africa's rand ZAR=D3 slipped 0.3% ahead of the release of second quarter GDP figures, while the local stocks benchmark .JTOPI edged 0.1% higher.

As of 0825 GMT, MSCI's index for emerging market stocks .MSCIEF dipped 0.3%, while a gauge for currencies .MIEM00000CUS slipped 0.1%.

Later this week, interest rate decisions in Argentina, Chile, Poland, Malaysia and Egypt are likely to be on investors' radar.

Investors would also look out for comments from African leaders in China ahead of the ninth Forum on China-Africa Cooperation (FOCAC) Summit later this week.


HIGHLIGHTS:


** World Bank raises India growth forecast to 7% for current fiscal year from 6.6%

** Conflict, creditors and a car crash: How Ukraine clinched a wartime debt restructuring

** Pakistan PM says government working on IMF conditions for loan programme



For GRAPHIC on emerging market FX performance in 2024 http://tmsnrt.rs/2egbfVh

For GRAPHIC on MSCI emerging index performance in 2024 https://tmsnrt.rs/2OusNdX


Reporting by Shashwat Chauhan in Bengaluru
Editing by Gareth Jones


For TOP NEWS across emerging markets nTOPEMRG
For CENTRAL EUROPE market report, see CEE/
For TURKISH market report, see .IS
For RUSSIAN market report, see RU/RUB
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