(Updated at 0845 GMT)

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Turkey rate decision due at 1100 GMT

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South Africa leading indicator down 0.4% in June

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Kenya top court suspends ruling on 2023 Finance Bill

By Lisa Pauline Mattackal

Aug 20 (Reuters) - Most emerging market stocks and

currencies edged higher on Tuesday, as investors hoped for

confirmation that the U.S. Federal Reserve would ease borrowing

costs next month, while Turkey's lira fell ahead of an expected

interest rate decision.

MSCI's emerging market stocks index rose 0.3%,

hovering at a more than one-month high, while an index tracking

currencies edged up 0.2% , building on record

highs touched on Monday.

A weaker U.S. dollar helped lift emerging market

currencies, with the greenback hovering at its lowest since

January.

Meanwhile, the Turkish lira touched a fresh

record low for a fourth straight session, trading at 33.826 to

the dollar ahead of a central bank rate decision at which

policymakers are expected to keep rates on hold, despite recent

data pointing to declining inflation.

"Turkey's TCMB will doubtless accompany its expected rate

hold with a hawkish message, pointing to still elevated consumer

inflation expectations, and the need for CPI (consumer price

index) to fall significantly further," said Marc Ostwald, chief

economist and global strategist at ADM Investor Services

International.

Investors are keenly watching the Jackson Hole symposium in

the U.S. later this week, where Federal Reserve Chairman Jerome

Powell is likely to signal a rate cut at the Fed's September

meeting, which would likely weaken the dollar and lift demand

for higher-yielding emerging market assets.

A number of emerging market central banks also meet this

week, with policymakers seeking to balance the need for economic

growth with limiting inflation, even as broad dollar strength

this year has weighed on local currencies.

China left its benchmark lending rates unchanged, as

expected.

South Africa's rand weakened after a 10-day winning

streak, though remained around one-year highs, with the

greenback rising 0.4% against the currency. South Africa's

leading indicator for June slipped 0.4% on a

monthly basis.

Among individual equity markets, Turkey's main index

rose 0.2%, Polish stocks slipped 0.9%, while

South African stocks gained 0.4%. Indonesian stocks

hit a record high earlier in the day.

The dollar rose 0.5% against Russia's rouble. The

euro was broadly flat versus currencies in central Europe

.

Elsewhere, Israel's shekel rose 0.3%, while its main

stock index rose nearly 1%. The U.S. Secretary of State

said on Monday that Israel had accepted Washington's proposal to

tackle disagreements blocking a ceasefire deal in Gaza with

Hamas.

Kenya's Court of Appeal suspended a lower court's judgment

that the 2023 finance law was unconstitutional.

HIGHLIGHTS:

** Latin American central banks face dilemma as FX weakness

fuels inflation fears

** BHP's quick strike fix sets tone for labor talks amid

copper rally

** China plans 'bigger, stronger' social security fund to

aid ageing society

** Decision from Bank Indonesia, the Bank of Thailand and

the Bank of Korea expected throughout the week.

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see