(Updated at 0907 GMT)

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U.S. PCE data due at 1230

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Sri Lanka to elect new president on Sept 21

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Turkey c.bank not considering rate cuts now, deputy Akcay

says

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Hungary flags pre-election stimulus as recovery falters

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Stocks down 0.2%, FX off 0.1%

By Johann M Cherian

July 26 (Reuters) - Investors in emerging markets showed

caution on Friday ahead of key inflation data out of the United

States and interest rate decisions in Russia and Ghana, with an

index tracking equities hitting a six-week low.

MSCI's index tracking emerging markets (EM) stocks

slipped 0.2% and was on track for a weekly decline of 1.6%, as a

sustained rout in Asia-tech stocks, a surprise rate cut in China

and tax hikes in India on equity and derivatives trading weighed

on risk taking over the past five sessions.

A currencies gauge dipped 0.1% against the

dollar, with the focus firmly on U.S. inflation data due later

in the day that could determine the Federal Reserve's monetary

policy easing outlook, and consequently the strength of the

dollar and decisions of central banks in developing markets.

Still, Charlie Bird, an FX trader at Verto said: "One data

print may not cause EM currencies to strengthen significantly in

the long term."

"The goldilocks scenario for EM would be for U.S. (Personal

Consumption Expenditure data) to drift lower than expectations

through to the end of 2024, alongside other developed market

inflation metrics."

Meanwhile, Turkish bonds ticked up 9

and 6 basis points (bps) respectively after Deputy Governor

Cevdet Akcay said the local central bank was not considering a

rate-cutting cycle at this time. He told Reuters in an interview

that easing too early could reignite inflation and extend the

pain for an economy on the verge of disinflation.

In south Asia, Indian stocks rose over 1%

each, rebounding from a five-day loosing streak.

The yield on India's benchmark bonds dipped 2

bps. Traders expect the central bank's latest draft guidelines

aimed at enhancing the liquidity resilience of lenders to boost

demand for government bonds over the medium term.

Sri Lankan assets were broadly muted after the

government said a presidential election would be held on Sept.

21.

In central Europe, Hungary's forint firmed 0.1%

against the euro, but was on track for its first weekly decline

in over six weeks, following an interest rate cut by the

country's central bank earlier in the week.

Economy Minister Marton Nagy flagged stimulus measures in

2025, a pre-election year, even as Hungary struggles with the

largest debt in the region.

Russia's rouble weakened 0.6% against the dollar

ahead of a central bank interest rate decision, with

expectations for a 200 bps hike to 18%.

Ukraine's hryvnia firmed 0.7% relative to the

euro, a day after the country's central bank kept its key

interest rate unchanged at 13%.

Ghana's cedi was flat ahead of an interest rate

decision later in the day.