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EM stocks up 0.5%, FX up 0.2%

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Fitch revises Poland's outlook to 'negative'

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Turkey's main opposition calls for rallies

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World Bank cuts Vietnam's growth forecast

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Israel has accepted Trump's Gaza ceasefire proposal

(Updates with fresh comments, graphic)

By Pranav Kashyap and Twesha Dikshit

Sept 8 (Reuters) -

Indonesian stocks flipped from early gains to finish lower,

while the rupiah moved higher, after the country ousted Finance

Minister Sri Mulyani Indrawati in a cabinet shake-up on Monday.

The rupiah jumped 0.7%, logging its biggest intraday

gain in over two months, stocks quickly reversed gains

to close at an over one-week low, and international dollar bonds

fell, with the 2045 bond traded down 0.33 cents to bid at 97.58

cents.

Her removal followed two weeks of nationwide unrest over

tax fairness. Indonesia named Purbaya Yudhi Sadewa as the new

finance minister, who said 8% growth was "

not impossible

" and would find ways to quickly boost the economy.

"There would definitely be concerns about how the fiscal

situation would be in terms of fiscal policy developments out of

Indonesia going forward," said Saktiandi Supaat, regional head

Of FX Research and strategy, global markets, Maybank.

"In the interim, there will be some efforts by Bank

Indonesia to make sure the currency remains stable."

Thailand's baht, meanwhile, hit an over four-year

high against the dollar, as political jitters eased following

the election of its new prime minister on Friday, capping off

months of political uncertainty.

The yield on the country's two-year bonds hit its

lowest in over three years, while stocks in Bangkok were

at their highest in nearly a month.

Malaysian equities finished 0.5% higher, while the ringgit

inched up 0.1%.

Meanwhile, Istanbul stocks fell 2% to a over

one-month low, while the lira hovered near record lows

and two- and five-year bond yields hit

one-month highs.

Tensions spiked as the main opposition CHP urged rallies

after police ringed its Istanbul headquarters with barricades-an

action the party leader denounced as a "siege."

Renewed political uncertainty has sparked a fresh flight

from Turkish assets since a court ordered the dismissal of CHP

officials. The party has faced a months-long legal crackdown,

including against Istanbul Mayor Ekrem Imamoglu-the president's

chief rival-whose March arrest ignited Turkey's largest street

protests in a decade.

"If recent political uncertainties lead to a swift and

sustained deterioration in appetite for lira and place

significant pressure on reserves as we approach the monetary

policy meeting, we believe they would be open to a smaller cut

or even remaining on hold," said Yigit Onay, economist at

Deutsche Bank.

The MSCI gauge for emerging market stocks rose

0.5%, while a similar gauge for stocks ticked up

0.2%.

Vietnamese equities fell to a two-week low, after the

World Bank trimmed its forecast for the country's economic

growth on evidence that U.S. tariffs were starting to have an

impact on the exporter's shipments.

Israel said it had accepted a Gaza ceasefire proposal from

U.S. President Donald Trump, Israeli foreign minister Gideon

Saar said. The Shekel rose 0.2%, to an over-one week

high, while stocks in Tel Aviv was down 0.4%.

In central and eastern Europe, most currencies were trading

marginally lower against the euro, while equities were mixed.

Romanian equities fell 0.3% following the broad

coalition government's advancement of deficit-lowering tax hike

and spending cut packages after surviving four back-to-back no

confidence votes.

The country currently has the highest budget deficit in the

European Union that it must lower to avert a ratings downgrade

from the last rung of investment grade.

Polish stocks jumped 1.4%, despite Fitch Ratings

revising the country's outlook to "negative" from "stable",

citing growing risks to public finances as the key driver.

Argentina's international bonds could open 5-6 points lower,

investors said, after President Javier Milei's party suffered a

heavy defeat to Peronists in a weekend Buenos Aires province

election. U.S.-listed Argentine shares also fell premarket.

EM currencies gained momentum as investors amped up bets on

a Federal Reserve rate cut this month after fresh data signalled

more cracks in the U.S. labour market.

Markets have fully priced a 25 bp move and now assign about

a near 10% chance to a larger 50 bp cut-up from zero a week ago,

CME FedWatch showed.

Elsewhere, South African stocks hit a two-week

high, while the the rand rose 0.2% ahead of the release

of gross domestic product figures on Tuesday.

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see