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Ukraine set to send $20 bln rework proposal to bondholders

by

May - sources

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Hang Seng jumps on policy support, China shares close

lower

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China leaves benchmark lending LPRs unchanged, as expected

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EM stocks up 0.6%, FX flat

By Bansari Mayur Kamdar

April 22 (Reuters) - Emerging market stocks started the

week higher on Monday as fears of a wider middle east conflict

receded, while currencies were little changed.

The MSCI index for emerging market stocks gained

0.6% by 0833 GMT, after falling 3.6% last week, its worst week

since June last year as Middle East tensions heightened from

Israel's strike on Iran.

The risk-sensitive markets have calmed since then after

Tehran played down the incident and indicated it had no plans

for retaliation.

The Hang Seng index rose 1.8% after China's regulator

on Friday said it will facilitate Hong Kong listings by leading

Chinese companies and expand the Stock Connect cross-border

investment scheme to promote Hong Kong's status as a global

financial centre.

However, China's blue-chip CSI 300 index and

Shanghai Composite index closed 0.3% and 0.7% lower,

while the yuan softened to a five-month low against the dollar.

Beijing also left benchmark lending rates unchanged at a

monthly fixing, in line with market expectations.

Around the region, MSCI's Asia ex-Japan stock index

gained 0.8%, with South Korean shares

advancing 1.5% as the country's finance minister expressed a

strong will to continue to push for corporate reforms.

In central Europe, the Polish zloty slipped 0.3%

against the euro after industrial output fell more than expected

in March, while producer prices, employment and wage prints were

broadly in line with expectations.

Hungary's forint inched higher ahead of Tuesday's

rate decision.

"Although (Hungary's) inflation data has continued to come

in weak, with headline CPI falling to +3.6% year-over-year in

March, the Forint remains the 'binding constraint' on the pace

of rate reduction," Goldman Sachs economists said in a note,

adding that they expect the central bank to cut by 50 basis

points.

Central bank decisions from Indonesia, Turkey, Ukraine and

Russia are also on tap later this week.

Ukraine is also poised to send international bondholders a

proposed plan to restructure its $20 billion in debt by early

May, two sources familiar with the situation told Reuters.

The war-torn country has struggled to shore up its finances,

though momentum has picked up after the U.S. House of

Representatives on Saturday passed a legislative package that

will provide Ukraine with security assistance of $60.84 billion.

The $95 billion legislative package will also provide $26

billion for Israel and $8.12 billion for the Indo-Pacific.

The emerging markets currencies index was

nearly flat, after posting its second straight weekly loss on

Friday.

Elsewhere, Angola hopes to return to international bond

markets this year with a $1 billion bond, Finance Minister Vera

Daves de Sousa told Reuters.

South Africa faces upside risks to its inflation outlook,

Central Bank Governor Lesetja Kganyago said.

The rand ticked lower against the dollar and was down

nearly 4.3% so far this year.

HIGHLIGHTS:

** Ghana finance minister expects MoU with bilateral lenders

in May

** Vietnam cenbank delays gold auction on lack of interest

** Vietnam set to launch new stocks trading system