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EM stocks up 0.3%; FX flat

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Won down 0.4%; KOSPI closed down 0.6%

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India holds interest rates at 6.50%

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Rouble rebounded past 100 mark

By Pranav Kashyap

Dec 6 (Reuters) - South Korean assets took a significant

hit on Friday amid fresh reports of a potential second martial

law declaration, while the Russian rouble rose past the 100

mark.

The South Korean won fell as much as 1.1% against the

U.S. dollar before stabilising to trade 0.4% lower, with market

participants suspecting central bank intervention for the second

time this week.

The KOSPI index closed lower by 0.6%, reflecting the

day's turmoil.

South Korea's main opposition Democratic Party reported that

lawmakers were on alert after numerous reports about another

martial law declaration, according to Yonhap news agency.

The won tumbled 1.8% over the week, poised to mark its

steepest weekly decline in over two months if the losses

persist.

The Russian rouble rebounded past the 100 mark

against the U.S. dollar, with a 1.8% increase to 99.5. This

week, it has rallied nearly 6%, positioning itself for its best

weekly performance in over a year.

President Vladimir Putin removed the option for gas buyers

to convert currencies into roubles at the U.S.-sanctioned

Gazprombank.

Kirill Tremasov, an adviser to the central bank's governor,

indicated that high interest rates might persist for another 2-3

quarters before easing could commence.

As of 1013 GMT, the MSCI EM equities index rose

0.3%, reaching 1106 points.

In the lead-up to Romania's presidential runoff vote,

thousands gathered in the capital, Bucharest, on Thursday night

to rally in support of democracy. As the nation prepares for

Sunday's election, the outcome could potentially see a far-right

EU critic triumph over a pro-European centrist candidate.

Romania's leu was steady against the euro at

4.9774.

The Turkish market regulator, Capital Markets Board, said it

would remove the short selling ban on the top 50 stocks of Borsa

Istanbul.

In South Africa, the government sold 950 million rand

($52.71 million) of its 2043 and 2058

inflation-linked bonds at auction.

The country's net foreign reserves fell to $60.619 billion

at the end of November. The rand softened 0.1% against

the dollar.

Meanwhile, Ghana gears up for its legislative and

presidential election set for Saturday.

In Asia, the Reserve Bank of India maintained its key

interest rate and cut the cash reserve ratio that banks are

required to hold, thereby easing monetary conditions amid

slowing economic growth.

The rupee, which hit record lows earlier this week,

was last seen trading flat at 84.66 to the dollar.

"The lowering of the cash reserve ratio does show that it is

turning more concerned about the growth outlook. But we doubt

that the MPC will feel comfortable cutting the repo rate until

its April meeting," said Shilan Shah, deputy chief EM economist

at Capital Economics.

The dollar has receded this week, as markets

increasingly anticipate a Fed rate cut in December, offering a

tailwind for emerging market currencies.

In other news, donor countries have pledged a record $100

billion three-year replenishment of the World Bank's fund for

the poorest nations, providing a vital lifeline for their

struggles against crushing debts, climate disasters, inflation

and conflict.

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see