*

Kenya bonds fall after IMF says lending program review

abandoned

*

South Africa central bank rate decision on Thursday

*

US Fed's interest rate decision on Wednesday

*

S&P upgrades Saudi Arabia's credit rating to A+ from A

*

EM stocks up 0.7%, FX flat

By Shashwat Chauhan

March 17 (Reuters) - Emerging markets stocks climbed on

Monday as investors assessed plans from the Chinese government

to boost domestic consumption ahead of a plethora of interest

rate verdicts this week, including the U.S. Federal Reserve.

Stocks in South Korea and Hong Kong closed up

after China's State Council on Sunday unveiled what it called a

"special action plan" to boost domestic consumption.

Mainland Chinese investors, however, were less enthusiastic,

with the blue-chip CSI300 closing 0.2% down.

MSCI's broad gauge for EM stocks advanced 0.7% by

0856 GMT.

Front and centre for the week ahead will be the Fed's

interest rate decision on Wednesday, with markets widely

expecting the central bank to hold its rate steady.

"The extreme uncertainty triggered by the first moves of the

new U.S. administration poses downside risks for employment and

upside risks for inflation in an economy that still shows

healthy domestic demand and sticky inflation," Paolo Zanghieri,

senior economist at Generali Investments, said.

"This uncertainty should reinforce the data-driven approach

the FOMC has long advocated."

RATES DECISIONS

Jitters around the ever-changing U.S. trade policy has

rattled markets, with the dollar dipping against most developed

market peers. Emerging markets have cashed in somewhat on the

greenback's weakness

MSCI's index for EM currencies has advanced

1.7% so far this year compared with a more than 4% fall of the

dollar index in the year-to-date.

EM stocks meanwhile, have outperformed the U.S. S&P 500

so far in March, as beaten down Indian equities have

recouped some of their losses and Beijing vowing more support

for its ailing economy helped Chinese equities recover.

Central Eastern Europe was not far behind, as hopes of a

peace deal between Russia and Ukraine lifted sentiment, in

contrast to a sharp drop in American equities, where the S&P 500

slipped into a technical correction last week.

U.S. President Donald Trump said he plans to speak to

Russian President Vladimir Putin on Tuesday and discuss ending

the war in Ukraine, after talks between U.S. and Russian

officials in Moscow.

CEE equities were broadly higher, with Polish blue chips

advancing 0.4%, while most currencies held steady

against the euro.

Last week, data showed Hungary's headline inflation rose to

5.6% in February, amongst the worst in Europe, which prompted

Prime Minister Viktor Orban to announce that the government

would curb the prices of 30 basic foodstuffs from the middle of

March.

In Africa, Kenya's international bonds tumbled more than 1

cent on the dollar after the International Monetary Fund said

both sides had abandoned the ninth review of its current lending

program.

South Africa's rand meanwhile, weakened 0.1% against

the dollar in lead-up to an interest rate decision on Thursday,

when the South African Reserve Bank is widely expected to hold

its rate steady at 7.50%.

Interest rate decision in Brazil, Chile and Russia are also

due later in the week.

Late on Friday, global ratings agency S&P raised Saudi

Arabia's rating to A+ from A, with a stable outlook, underpinned

by the ongoing social and economic transformation in the

country.

HIGHLIGHTS:

** China retail sales pick up as Beijing turns to consumers

to ease US trade pressure

** Bessent says there are 'no guarantees' there will not be

a US recession

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see