*

Beijing vows 'necessary spending' to hit economic growth

target

*

China weighs injecting $142 bln into top banks - Bloomberg

News

*

Saudi Arabia to abandon $100/barrel crude price target -

FT

*

Kenya close to agreeing $1.5 bln budget support loan from

UAE

*

Stocks up 1.8%, forex flat

By Ankika Biswas

Sept 26 (Reuters) - Emerging market stocks jumped nearly

2% on Thursday, boosted by Chinese and Hong Kong shares on

Beijing's promise of more policy measures, while Pakistan's

stock index hit a lifetime high after the IMF's long-awaited

bailout deal approval.

The Shanghai Composite index and blue-chip CSI300

Index jumped about 4%, logging their highest closing

level since June and a seven-day winning streak. The Hang Seng

Index also closed more than 4% higher.

The mainland properties index jumped 16.5%, its

biggest one-day gain in more than two years.

Sentiment got a boost from Chinese leaders pledging to deploy

"necessary fiscal spending" to meet this year's economic growth

target of roughly 5%, and a report that China is considering

injecting up to 1 trillion yuan of capital into its biggest

state banks to increase their capacity. Reuters reported that

China plans to issue special sovereign bonds worth about 2

trillion yuan this year, citing two sources with knowledge of

the matter.

This comes in the face of the world's second-largest economy

facing strong deflationary pressures due to a sharp property

market downturn and frail consumer confidence.

"Southeast Asia has scope for a consumer revival over the

coming quarters as lower inflation, a weakening U.S. dollar, and

lower U.S. rates permit local interest rates to come down," UBS

analysts wrote.

"The region offers economic and investment diversity and

should remain well-supported in a global soft landing, even with

a softer China."

Pakistan's benchmark share index hit a lifetime high in

early trade, before slipping into the red, after the

International Monetary Fund's board approved a $7 billion

bailout deal for the struggling economy.

The MSCI index for EM stocks climbed 1.8%, on track for its

sixth day of gains, with main stock indexes in Central and

Eastern European countries such as the Czech Republic,

Poland and Hungary also up between 0.4% and

0.6%.

South Africa's benchmark Top-40 index jumped 1.4%

to hit a fresh record, rising for the fifth straight day.

Central bank data showed the country recorded foreign direct

investment inflows of 16.6 billion rand in the second quarter,

down from first quarter's 24.4 billion rand.

All eyes are on Mexico's monetary policy decision later in the

day, largely expected to cut interest rates by 25 basis points,

while Sri Lanka and Ghana's decisions are due on Friday.

Meanwhile, Saudi Arabia is preparing to abandon its unofficial

oil price target of $100 a barrel as it prepares to increase

output to win back market share, even if it means lower prices,

the Financial Times reported.

Elsewhere, Kenya's government is close to agreeing a $1.5

billion loan from the United Arab Emirates with an interest rate

of 8.2% which will help bridge its financing gap, Reuters

reported.

HIGHLIGHTS:

** Hungary central bank's key inflation gauge to exceed 3% next

year

** Argentina economic activity smashes forecasts, raising

'turning point' hopes

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see