*

US non-farm payrolls data due at 1330 GMT

*

Hungary's inflation eases to 3.7%

*

Stocks up 0.8%, FX adds 0.3%

By Shashwat Chauhan

March 8 (Reuters) - A gauge of emerging market stocks

rose to seven-month highs on Friday, as sentiment remained

upbeat on hopes that major central banks could consider cutting

borrowing costs this year, while most currencies held their

ground.

By 0912 GMT, MSCI's index for emerging market stocks

was up 0.8%, its highest level since August, eyeing

weekly gains of 1.4%.

Stocks in Asia had an upbeat close, with South Korea's main

share index closing 1.2% higher, while Hong Kong

added 0.8%.

Global risk appetite flourished after U.S Federal Reserve

Chair Jerome Powell said on Thursday the central bank was "not

far" from gaining the confidence it needs in falling inflation

to begin cutting interest rates.

"Now that markets have been handed a relatively dovish

guideline by Powell, the focus turns back to data," ING

strategists wrote in a note.

Turkish stocks gained 0.1% early on, while

Hungarian stocks were last up 0.3%.

Adding to rate cut hopes, European Central Bank policymaker

Francois Villeroy de Galhau said the bank will probably start

lowering interest rates this spring.

A gauge of EM currencies also rose 0.3%, on

track for its second straight week of gains.

The Hungarian forint held steady at 395.19 per

euro after data showed the country's headline inflation eased to

an annual 3.7% in February, its lowest since March 2021, and

came in below the median forecasts.

Hungary's forint looked set for its second straight week of

losses, the worst performing amongst local peers after its

central bank ramped up the pace of rate cuts last week.

The Czech crown edged 0.1% lower against the euro,

on track for weekly losses.

Official data showed the Czech unemployment rate was

unchanged at 4.0% in February, in line with forecasts.

Looking ahead, all eyes were on February U.S. nonfarm

payrolls data due later in the day, a crucial metric in gauging

the state of the labour market of the world's biggest economy

and the subsequent outlook for monetary policy.

Elsewhere, Pakistan's sovereign dollar bonds advanced after

a spokesperson for the International Monetary Fund (IMF) said

the lender will support formulating a new economic programme for

Pakistan if the new government seeks one.

HIGHLIGHTS:

** S.Africa's ARM pauses Bokoni mine expansion plan after H1

profit fall

** Turkey to stress Ukraine support during Zelenskiy visit,

Turkish source says

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see