*

EM stocks tank 1.7%, FX flat

*

Polish inflation at 2.8% y/y in October

*

Romanian quarterly growth contracts in Q3

*

Senegal bonds eye worst week on record

*

South Korea vows to stabilise won; intervention suspected

after

slide

By Nikhil Sharma

Nov 14 (Reuters) - Emerging market stocks joined a

global selloff on Friday after hawkish Federal Reserve comments

dimmed expectations for a U.S. rate cut next month, triggering

risk aversion that has trimmed gains from earlier in the week.

MSCI's index of emerging market stocks sank 1.7% -

on track for its worst single-day fall since April 7, when U.S.

President Donald Trump's tariff announcements sparked fears of a

global downturn, forcing investors to dump equities.

The day's selloff erased most of the gains accumulated

earlier this week in the run-up to the end of the longest U.S.

government shutdown in history, reducing equity gains to just

0.3% week-to-date.

For the month, the region-wide equity index was down 1.1%

and could end November in the red if losses hold, marking its

first monthly decline of 2025. However, it is still up about 29%

this year, on track for its best performance since 2017.

A broader gauge for EM currencies was

largely stable and remained on track for a weekly advance, up

0.2% week-to-date, supported by a weaker dollar.

An increasing number of Fed policymakers have expressed

reluctance to ease rates further, citing persistent price

pressures and a firm labor market despite two U.S. rate cuts

earlier this year.

Market participants are pricing in a 50.5% chance of a hold

verdict at the Fed's December meeting.

"Expectations of a Fed interest rate cut next month have

slumped to 50%; a month ago, a rate cut was a near certainty.

This could limit any chance of a stock market recovery until we

see the latest U.S. economic data now that the government

shutdown has ended," Kathleen Brooks, research director at XTB,

said in a note.

Wall Street futures pointed to a lower open, while Asian

emerging markets were also severely bruised,

down nearly 2%.

In Central-Eastern Europe, Poland's main stock index

was down 1.25% on the day, dragged by a 3.2% fall in

state-run copper producer KGHM after it reported

third-quarter results.

The zloty currency was largely steady as consumer

prices remained stable in October. The zloty was up 0.2%

week-to-date.

The Hungarian forint was set for its worst week in

a month, weighed down by a government announcement this week it

would raise deficit targets for 2025 and 2026. Budapest stocks

fell 0.26%, but were up 0.6% for the week.

The Czech koruna and Prague's main stock index

remained on track for their best week since early August,

even as the assets were down on the day.

In Romania, Bucharest stocks fell 0.2% and the leu

currency was flat on Friday. Data showed the economy

contracted quarter-on-quarter in the third quarter as higher

electricity prices and tax hikes depressed domestic demand, but

still beat annual growth expectations.

Rising electricity prices and tax hikes prompted Romania's

central bank to keep rates at 6.5% this week and raise its

annual inflation forecast for this year and next.

Elsewhere, Senegal's international bonds suffered a record

selloff this week, dragged down by a lack of progress on a new

loan program with the International Monetary Fund and by ongoing

political infighting.

On Thursday, the IMF revealed it was working with the

country to finalize an agreement on reforms to underpin a new

program.

The 2031 maturity was trading at 68.047

cents on the dollar - a level considered to be entering

"distressed" territory - and has fallen about 10 cents this week

in its worst weekly slump on record.

The South Korean won currency reversed early losses

to jump 0.9% on suspected government intervention. Authorities

vowed to take measures to stabilise a wobbly currency, including

enlisting support from the national pension fund.

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see