*

Pakistan to unveil budget with eye to winning new IMF

bailout

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South African rand stable, focus on unity government talks

*

Romanian inflation slows, bolstering rate cut expectations

*

Emerging market stocks up 0.4%

By Ankika Biswas

June 12 (Reuters) - Emerging market stocks regained some

momentum on Wednesday, with investors zeroing in on a key U.S.

inflation report and Federal Reserve policy decision later in

the day, while Ghana agreed a debt restructuring memorandum with

official creditors.

The MSCI index for EM stocks climbed 0.4%, after

three straight sessions of declines, while the currencies gauge

was largely unchanged.

Investors are focused on a U.S. consumer inflation print,

followed by the Federal Reserve's rate decision later in the

day, for further clarity on when rate cuts might begin against

the backdrop of a still-tight labour market and stubborn price

pressures.

"While political headlines are likely to remain abundant,

markets will get the chance to return to trading economic

fundamentals with a double-header of US CPI and a Fed decision.

Overall, we suspect the outcome of both will continue to be

bullish for the dollar," a Monex Europe note said.

Meanwhile, Ghana's finance ministry said it had reached a

Memorandum of Understanding with its Official Creditor Committee

to formalise a debt restructuring deal, likely paving the way

for the International Monetary Fund's executive board approval

of the second review of a $3 billion loan package and the

release of the next tranche of $360 million.

Ghana's cedi climbed 0.8% against the dollar.

Later in the day, Pakistan's coalition government will

present its budget for the fiscal year to June 2025 that

analysts expect to set ambitious fiscal targets as it looks to

strengthen the case for a new IMF bailout deal.

Pakistan's benchmark stock index rose 0.5% after

shedding over 4% in the past seven days.

South Africa's rand was up 0.2% against the dollar,

with investors scrutinising collaboration between parties trying

to form a government of national unity before lawmakers swear

the oath of office on Friday.

Leading gains in Central and Eastern European currencies,

the Hungarian forint rose 0.4% against the dollar, after

losing nearly 3% in a span of three days and hitting a near

seven-week low on Tuesday.

Romanian inflation slowed more than expected in May,

bolstering analysts' expectations that the central bank will

begin cutting interest rates at its July policy meeting. The leu

, however, was up 0.1%.

Elsewhere, Mexican President-elect Claudia Sheinbaum on

Tuesday tried to calm investor concerns over a proposed judicial

overhaul that has sharply weighed on the peso,

promising the country would maintain the rule of law while

saying she planned to push ahead with the reforms. The peso was

down 0.3%.

Equity markets in Russia and Israel were closed on account

of public holidays.

HIGHLIGHTS:

** India central bank likely intervened in NDF to stop rupee

from hitting record low, traders

** Nigeria's president says economic reforms will continue

despite hardships

** Kenya's cabinet approves sale of its shares in six listed

companies