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EM stocks, FX flat

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Turkey inflation falls to 32.95% in Aug

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Polish rate decision due at 1300 GMT

By Pranav Kashyap

Sept 3 (Reuters) - Most emerging market currencies and

stocks hovered in limbo on Wednesday amid a risk-off sweep,

while investors awaited a rate decision in Poland.

The gauges tracking emerging market stocks and

currencies were largely flat. A global selloff

in government bonds lingered from the prior session, while

political strains in Thailand and Indonesia kept sentiment

muted. Safe-haven gold hovered at record-highs.

The Turkish lira swung between gains and losses as

investors parsed data showing annual inflation eased, but fell

short of expectations.

Equities dropped 2% for a fourth straight day, on

track for the longest losing streak in over three months, after

the biggest intraday slide in five months.

Political jitters mounted after a court ousted Istanbul's

CHP provincial chief, spooking investors out of Turkish stocks

and bonds.

With the central bank meeting next Thursday and likely to

cut rates again, fresh turmoil could force a more cautious

stance, echoing March, when protests after the detention of

President Tayyip Erdogan's main rival prompted intervention to

steady markets.

"The data.. keeps the door open to large interest rate cuts

at the central bank's meeting. One upside risk is that renewed

political turmoil could prompt the central bank to act more

cautiously," said William Jackson Chief emerging markets

economist at Capital Economics.

Meanwhile, the Polish zloty was flat and could

potentially snap its longest daily winning streak against the

euro in over six months.

With recent data pointing to inflation moving back to the

target zone, the National bank of Poland is expected to lower

rates by 25 basis points to 4.75% at 13:00 GMT.

Stocks in Warsaw rose 0.8%. The rate decision comes

at a time when investors continue to fret over a projected 6.9%

deficit - more than double the EU's 3% cap.

U.S. President Donald Trump will welcome Polish President

Karol Nawrocki in the White House later in the day.

Other currencies in central and eastern Europe were largely

flat.

Investors exercised caution ahead of U.S. nonfarm payrolls

on Friday, preceded by data on job openings and private

payrolls, giving clarity on the labour market that has become

the focus of policy debate at the Federal Reserve.

In Asia, Thai stocks gained nearly 1% while the baht

slipped 0.3%. The ruling Pheu Thai party moved to

dissolve parliament and call snap elections, defying the largest

parliamentary bloc's bid to form an alternative government.

Indonesian markets were mixed, with the rupiah

weakening 0.1% and equities gaining 0.8% as investors

monitored escalating civil unrest.

Investors continued to book profits in Chinese equities,

with Shanghai stocks down 1.2%, while Hong Kong's

and China's lost 0.6% each.

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see