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Nepal PM Oli quits as anti-corruption protests spiral

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Emerging markets stocks up 1%, currencies up 0.2%

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Hungary's August headline inflation at 4.3%

By Pranav Kashyap and Twesha Dikshit

Sept 9 (Reuters) - A gauge tracking emerging market

equities climbed to a four-year high on Tuesday as traders

increased bets on a larger, half-point, Federal Reserve interest

rate cut, while the South African rand traded at its strongest

in two weeks.

The MSCI gauge for emerging markets stocks rose 1%

to its highest since October 2021, driven by gains in South

Korean, Hong Kong and Taiwan equities.

Pressure kept building on the dollar, which dipped to a

seven-week low as markets girded for labour data revisions that

could tip the scales toward steeper rate cuts. CME's FedWatch

tool pegs the chance of a 50 basis-point cut this month at 12%.

In Asia, Nepal's prime minister, K.P. Sharma Oli resigned,

his aide said, following violent anti-corruption protests. The

currency rose 0.2% against the euro and 0.18% against

the dollar in light volumes.

Indonesian assets remained under pressure with the benchmark

stock index dropping 1.5% while the rupiah

weakened the most in five months after the nation's influential

finance minister was removed from her post.

In central and eastern Europe, the Hungarian forint

stumbled from a one-year high against the euro, poised

for its steepest daily slide in nearly five months. Inflation

data showed annual core inflation slowed to 3.9% in August from

4.0% in July, though the headline figure still remained outside

the central bank's 2%-4% range, reason enough for officials to

keep interest cuts off the table despite a frail economy.

Stocks in Budapest were flat.

South African stocks hit a new high and the rand

extended its winning streak to three days, touching

late-August levels ahead of second-quarter GDP data seen at

0.5%.

But with business confidence sagging under the weight of

Africa's stiffest U.S. levies, the government is scrambling for

tariff relief.

Elsewhere, Turkish stocks inched up 0.1% from an

over seven-week low it plumbed after falling for two consecutive

sessions. The lira was largely flat.

The Russian rouble dropped 1% to an over four-month

low. Yuan-denominated sovereign bonds should be issued on

Russia's domestic market, with Chinese investors able to access

the bonds through a direct link between the two countries'

depositaries, the Russian Finance Ministry said.

The Israeli shekel snapped a four-day rally - its

longest in over three weeks - as the military ordered Gaza City

residents to evacuate ahead of a new offensive.

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