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Pakistan share index hits record high, IMF cheer continues

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Turkey's local poll due on Sunday

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South Africa sees smaller FDI inflows in Q4

By Ankika Biswas

March 28 (Reuters) - Emerging market stocks climbed on

the last trading day of a holiday-shortened week while

currencies lagged against a firm dollar, as investors braced for

much-anticipated inflation data from the world's largest economy

the United States.

The MSCI stocks index rose 0.4%, nearing a

quarterly gain of 1.6% and losing some momentum after a 7.4%

jump in the previous quarter.

The currencies gauge slipped 0.1%, on track

for a quarterly decline, with the dollar index set for a

quarterly advance and firming 0.2% on the day as Federal Reserve

Governor Christopher Waller noted recent disappointing inflation

data affirms the case to hold off on cutting a short-term

interest rate target.

All eyes will be on the Fed's preferred inflation gauge- the

so-called core personal consumption expenditures (PCE) price

index data, due on Friday. Any negative surprises could further

blur the U.S. rate cuts picture.

"Another quiet session for markets, with quarter-end flows

and positioning ahead of a long weekend in Europe likely to

dominate," Monex Europe analysts wrote.

"Markets will receive the third reading of Q4 (U.S.) GDP at

12:30 GMT, but in the absence of any large revisions, this is

unlikely to rock the boat."

Heavily weighted Chinese stocks jumped on expectations

Beijing will take more aggressive measures to stimulate the

economy, while an official's speech also helped sentiment. The

blue-chip CSI300, Hang Seng index and the Shanghai SE

Composite index gained between 0.5% and 0.9%.

Pakistan's benchmark stock index touched an all-time

high, extending a rally following a staff level agreement with

the International Monetary Fund earlier this month to free up

more financial aid for the country.

Stock markets in the Gulf rose tracking higher oil prices,

following two-day losses, with traders reassessing latest data

on U.S. crude oil and gasoline inventories.

Russia's rouble strengthened to

92-per-dollar, supported by a month-end tax period.

Among others, South Africa's rand dropped 0.7%, while

Sri Lanka's rupee rose 0.2% against the dollar. Major

Central and East European nation' currencies- Hungary's forint

, Polish zloty and Czech crown were

muted against the euro.

Investors will also watch out for Turkey's local polls on

Sunday, with President Tayyip Erdogan's AK Party aiming to

reclaim some lost cities, including Istanbul and Ankara. The

opposition hopes to land a blow, with the future of its biggest

hope, Istanbul Mayor Ekrem Imamoglu, tied to the outcome.

HIGHLIGHTS:

** South Africa sees smaller FDI inflows in Q4

** FTSE Russell defers India's inclusion in government bond

index