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EM stocks see surge in 'buy the election' flows- BofA

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India's c.bank holds rates, raises growth outlook

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Russia policy decision due at 1030 GMT

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Pakistan to postpones its annual budget on June 12

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Stocks, FX eye first weekly gain in three

By Ankika Biswas

June 7 (Reuters) - Emerging market stocks rose on

Friday, eyeing gains in a week marked by local elections and

central bank rate cuts, while focus lies on a U.S. jobs report

for the Federal Reserve's policy easing cues and a press

conference by South Africa's ANC.

The MSCI index for EM stocks rose 0.2% to an over

one-week high, while the currencies gauge edged

0.1% higher, both looking at their first weekly gain in three.

This week saw the Bank of Canada emerge as the first G7

country to trim its policy rate, followed by the European

Central Bank's first rate cut in five years. Other central banks

like Sweden's Riksbank and the Swiss National Bank also eased

their policies earlier this year.

All eyes are on when the world's most influential central

bank, the U.S. Fed, will start cutting rates, with traders

betting on a 25-basis-point cut in September ahead of the

much-anticipated U.S. non-farms payrolls data during the day.

The other highlight of the day is an anticipated press

conference by South Africa's African National Congress (ANC)

after Thursday's announcement that it would seek to form a

government of national unity after failing to win a majority in

elections. That sent the rand 0.6% higher against the

dollar.

"In South Africa, risks are more symmetrically priced and

recommend taking profits on our long USDZAR trade. We now

recommend buying a 2-week USDZAR digital, as markets are

underestimating ZAR appreciation in the case of an ANC-DA

coalition," Barclays analysts said.

Also rocking the EM space was a Sunday landslide election

victory for the ruling MORENA party and its coalition in Mexico,

raising concerns around any passing of constitutional reforms

unopposed and keeping the peso under pressure.

Meanwhile, a three-day winning streak by Indian stocks

helped recoup the steep losses registered on

Tuesday after Prime Minister Narendra Modi's alliance won an

election by a surprisingly narrow majority.

Global investors poured money into all the major asset

classes in the week to Wednesday, with Indian and Mexican assets

seeing large inflows after election results, Bank of America

said in a report, citing EPFR data.

Further, the Reserve Bank of India kept its interest rate

unchanged in an expected move.

Pakistani stocks fell 1%, dragged by concerns of tax

hikes after the government announced a date for the annual

budget- June 12.

The Russian rouble traded steady against the

dollar ahead of the central bank's policy meeting and before

President Vladimir Putin speaks at Russia's premier investment

forum in St Petersburg.

HIGHLIGHTS:

** Mexico's president-elect says no decision yet on

constitutional reforms

** IMF sees Sri Lanka debt deal with external commercial

creditors soon

** Saudi Arabia set to raise $11.2 bln in Aramco share offer

priced at lower end of range

** No chance of rate cut in 2024- Polish c.bank governor