(Updated at 0855 GMT)

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South African stocks touch record high

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MSCI EM stocks, FX indexes set for weekly gains

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Thai stocks rise after new PM selected

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Lira sets new record low

By Lisa Pauline Mattackal

Aug 16 (Reuters) - Emerging market assets broadly rose

on Friday, with MSCI's index tracking equities on track for its

best week in nearly four months, as closely watched U.S.

economic data soothed jitters over slowing growth while keeping

the case for Federal Reserve September policy easing intact.

MSCI's index tracking emerging market stocks rose 1.6% as

bourses in Asia broadly strengthened, led by stocks in Taiwan

and the Philippines.

That tracked a rise in global stocks, after

stronger-than-expected U.S. retail sales data on Thursday, in

tandem with inflation data earlier in the week, brought relief

to investors worried about growth in the world's largest economy

after sharp bouts of volatility earlier in the month.

The EM stocks index is on track to rise 2.8% for the week,

its best week since April. An index tracking emerging market

currencies was flat on the day, but was set for

weekly gains of 0.4% and is hovering around 2022 highs.

While stronger U.S. data saw investors dial back bets on a

larger start to interest policy easing from the Fed, traders

still expect a rate cut at its next meeting, which should boost

demand for higher-yielding emerging market assets.

"The rush to seek higher yields in EM territories may

subside given the slower easing cycle in the U.S., but there's

no doubt that lower U.S. recession risk will give confidence to

invest in EM," said Charlie Bird, FX trader at Verto.

"Naturally, we expect regions with strong ties to the U.S.

to benefit in the medium term, but any global economic

positivity will filter through all EM territories."

Among top performers in Africa, South African stocks

jumped 1.1% on the day, touching a record high and on

pace for weekly gains of 3%. The rand rose 0.4%, set to

continue an eight-day winning streak and for its best week since

June.

Thai stocks rose 1% after Paetongtarn Shinawatra was

selected as the country's prime minister, replacing Srettha

Thavisin. The baht edged 0.1% lower against the dollar.

Meanwhile, Russia's rouble was flat against the

dollar, steadying after touching a 10-month low earlier in the

week as Ukraine intensified an attack on Russian territory.

Israel's shekel was steady against the dollar as Gaza

ceasefire negotiations continued.

Polish stocks led weekly gains in emerging Europe,

up over 6%. The zloty was trading at a near three-week

high versus the euro, on track to rise nearly 1% for the

week.

Turkish stocks were little changed on the day but

on pace for their first weekly gain in four, while the lira

touched a fresh record low to the dollar of 33.70.

HIGHLIGHTS:

** China's faltering growth revives cash vouchers talk

** Bank Indonesia to keep rates steady on Aug. 21, cut in Q4

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