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Romanian inflation in April at +5.90%, below expectations

*

Hungary c.bank raises end-June rate outlook to 6.75% - 7%

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EM stocks up 0.3%, FX off 0.1%

By Shashwat Chauhan

May 14 (Reuters) - A gauge for emerging market stocks

touched a more than two-year high on Tuesday, while most

currencies traded in limbo ahead of U.S. inflation data which

could dictate market perception of the Federal Reserve's

interest rate outlook.

As of 0806 GMT, MSCI's index for emerging market stocks

gained 0.3%, touching its highest level since April

2022, while a gauge for currencies dipped 0.1%.

The Romanian leu was last trading at 4.97 per euro

after data showed consumer price inflation in the country

dropped to 5.90% on the year in April, from 6.61% in the

previous month, below expectations of 6.2%.

"On our side, the entire forecast error came from the large

impact of lower energy price caps. Beyond that, however, there

is not much to cheer about," said Valentin Tataru, chief

economist Romania at ING.

"Stripping the energy effect, price developments do not

offer decision makers many reasons to be complacent."

The data comes a day after Romania's central bank defied

market expectations and kept its benchmark interest rate

unchanged as it sees end-year inflation higher than previously

forecast.

Hungary's central bank Deputy Governor Barnabas Virag said

the bank raised its base rate outlook to between 6.75% and 7% by

the end of June, trimming 25 basis points off its previous

outlook for rate cuts amid high services price pressures. The

forint was last down 0.1% against the euro.

The Czech crown held steady at 24.77 per euro,

hovering near its highest level since February. The crown

rallied in the last session when headline inflation jumped much

more than expected in April, pointing to a slower pace of

interest rate cuts.

South Africa's rand dipped 0.6% against a firmer U.S.

dollar, while the local stock index shed 0.1%.

Anglo American Platinum's Johannesburg-listed shares

dropped more than 6% after its parent company Anglo

American said in a strategic review that it was

exploring a demerger of its troubled platinum unit.

Most bourses in emerging Asia advanced, with stocks in India

, Taiwan and South Korea up between 0.1%

and 0.6%.

Focus would remain on U.S. consumer and producers prices

data for the month of April due this week, which could offer

clues into when the Fed could commence its policy easing cycle

and thereby the trajectory of the greenback.

HIGHLIGHTS:

** Pakistan unveils broader privatisation plan for

state-owned enterprises

** Hong Kong banks face credit risks from property downturn,

Moody's says

** Sri Lanka cabinet approves new economic law to meet IMF

targets

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