*

China factory data disappoints

*

Ukraine's sovereign bonds slide

*

Hungary c.bank decision due on Tuesday

By Sruthi Shankar

June 17 (Reuters) - Emerging market equities slipped on

Monday, on mounting concerns about more signs of uneven economic

recovery in China, while currencies were muted as investors

looked for more clues on when the Federal Reserve will start

cutting interest rates.

Ukraine was also on investors' radar, after the government

was unable to reach an agreement with a group of bondholders

over restructuring some $20 billion of international debt.

The country's dollar-denominated eurobonds fell by as much

as 1.5 cents even as Ukraine's Finance Minister Serhiy Marchenko

said talks would continue and he expected the government to

reach an agreement by Aug. 1.

Overall, the MSCI index of EM equities slipped

0.2%, while currencies were subdued as investors awaited more

U.S. economic data after mixed signals on the monetary policy

path last week.

Mainland China and Hong Kong stocks closed lower on Monday,

with the key benchmark finishing at its lowest level in more

than two months, dented by weaker-than-expected data that showed

the Chinese property sector remains a key drag on the economy.

The Shanghai Composite index dropped 0.6%, while the

blue-chip CSI300 index slipped 0.2%.

"Beijing is attempting to revive the real estate market by

encouraging local authorities to go on home buying sprees, but

this data suggests it'll just be a sticking plaster for a much

deeper wound afflicting property sector," said Susannah

Streeter, head of money and markets at Hargreaves Lansdown.

Several Asian and Middle Eastern markets were closed on

Monday, while bourses in Budapest, Warsaw and

Prague rose, mirroring a rebound in broader European

markets after political turmoil gripped traders last week.

The Hungarian forint firmed to 395.52 after

racking up losses against the euro recently ahead of the central

bank's policy decision on Tuesday, where it is expected to opt

for the smallest rate cut in its 14-month-old easing cycle.

The forint touched a fresh three-month low to the

euro on Friday, and an eight-month low versus the dollar

after a hefty fine was imposed on Budapest by the European Union

over its migration policy.

Meanwhile, ratings agency Moody's upgraded Zambia's foreign

and local currency debt on Friday, citing the government's

strong performance under the International Monetary Fund (IMF)

programme, while it downgraded Gabon's ratings, pointing to

liquidity risks and deterioration in its fiscal strength.

HIGHLIGHTS:

** Polish cenbank may consider rate cut in Q2 2025, says

c.banker Kotecki

** Thai market fall due to political worries should be

temporary, official says

** South Korea to hold first round of talks with China on

Tues

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