*

Israel strikes heart of Beirut, killing at least six

*

Ethiopia bondholders reject $1 bln bond rework outline

*

South Africa business activity accelerates in Sept - PMI

*

Turkish inflation falls below 50% in Sept but above

forecasts

*

Russian rouble at lowest in a year against yuan

*

FX down 0.3% at one-week low, stocks off 1%

By Ankika Biswas

Oct 3 (Reuters) - Most emerging market assets dropped on

Thursday as investors vigilant of Middle East tensions favoured

safe-haven assets while awaiting further clues on the health of

the U.S. economy, with Hong Kong shares easing after a

blistering rally.

The safe-haven U.S. dollar hit a multi-week high,

driven by the worsening geopolitical situation and robust U.S.

jobs market data, with the MSCI EM currencies index

dropping 0.3% to a one-week low.

On the geopolitical front, Israel bombed Beirut and killed

at least six people after its forces suffered their deadliest

day on the Lebanese front in a year of clashes with Iran-backed

Hezbollah.

Investors also keenly awaited a slew of U.S. economic data

scheduled for the rest of the week, including closely watched

non-farm payrolls data on Friday, to determine the Federal

Reserve's likely course of upcoming rate cuts.

The MSCI stocks gauge dropped 1% and was set to

give up Wednesday's strong gains as Hong Kong shares succumbed

to profit booking after China's stimulus-fuelled rally.

The Hang Seng index dropped 1.5% after jumping 23% in

a six-day winning streak. Chinese markets were closed for public

holidays.

Among economic data, an S&P Global survey showed South

Africa's private sector saw an uptick in growth in September.

The rand recouped earlier losses to strengthen 0.3%

against the dollar, while the main stock index dropped

more than 1% amid geopolitical concerns.

Turkish annual consumer price inflation dropped to 49.38% in

September, falling below the central bank's policy rate for the

first time since 2021 but exceeding expectations.

"The smaller-than-expected decline in the headline rate will

be a disappointment to policymakers," said Nicholas Farr,

emerging Europe economist at Capital Economics.

The data "supports our view that a monetary easing cycle is

unlikely to start until 2025 - later than most other analysts

have been forecasting," he said.

Turkey's central bank has held its benchmark rate steady at

50% for a sixth straight month, after having hiked by 4,150

basis points since June last year.

A Reuters poll showed the Czech crown is the only

central European currency set for steady gains against the euro

in 2025, with Hungary's forint and Poland's zloty

likely to be stuck near current levels.

The crown hit a two-year low in August but has since

rebounded. The forint is at 1-1/2-year lows at the psychological

400 per euro level.

The Russian rouble fell to its lowest level against China's

yuan since Oct. 11, 2023 ahead of a Russian finance ministry

announcement on next month's sales of foreign currency.

Meanwhile, a group of Ethiopia's international bondholders,

known as the ad hoc committee, said it did not support the

illustrative terms of a restructuring for the country's $1

billion bond presented in an investors' call earlier this week.