(Updated at 0900 GMT)

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Hungary inflation above forecasts

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Taiwan, South Korea stocks lead declines

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RBI holds rates

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Turkish central bank Keeps inflation forecasts unchanged

By Lisa Pauline Mattackal

Aug 8 (Reuters) - Emerging market stocks lost ground on

Thursday, tracking global equities lower as a two-day rebound in

risk assets lost steam, while Hungary's forint rose after data

pointed to rising inflationary pressures.

Equity markets opened lower, with tech-heavy bourses in

Taiwan and South Korea leading losses in Asia.

Similarly, bourses in Prague, Budapest and

Warsaw fell between 0.1% and 1.4%, while MSCI's gauge

of global emerging market stocks lost 0.5%.

Sentiment remained fragile after concerns about a U.S.

economic recession set off a rise in safe-haven assets like the

yen, leading to a steep selloff on Monday. Markets had regained

some ground in the previous two days.

"We have seen a couple of better sessions for risk assets,

where some stability in equity markets has allowed market

interest rates to rise from panicked levels and allowed some of

the battered risk currencies to claw back some of their heavy

losses," analysts at ING wrote in a note.

"Determining whether those equity corrections continue or

fizzle out will be the combination of U.S. data and Fedspeak."

Hungary's forint strengthened to 396.92 against

the euro after core inflation rose to 4.7% in July, sending "a

mildly hawkish signal to the National Bank of Hungary,"

according to ING.

Other central European currencies traded slightly higher

against the euro, with Poland's zloty picking up from

a one-month low touched on Wednesday.

Markets will pay close attention to U.S. jobless claims data

later on Thursday for direction on the path of economic growth

and likely monetary policy response in the world's largest

economy.

MSCI's gauge of EM currencies rose 0.2%

, as the U.S. dollar gave back gains.

Shares of Poland's second largest lender Pekao lost

4.6% after higher operating costs weighed on its second-quarter

net profit, further weighing on the Polish stock index.

Elsewhere, the Turkish Central Bank will maintain its tight

monetary policy stance so that disinflation will continue, bank

governor Fatih Karahan said, while leaving inflation forecasts

unchanged.

The lira was flat against the dollar, while

Turkish stocks gained 0.3%.

India's rupee was steady, while stocks lost ground

after the Reserve Bank of India kept its key interest rate

unchanged.

Elsewhere, Egypt's annual urban consumer price slowed to

25.7% in July, below median forecasts of 26.6%. The Egyptian

pound was little changed against the dollar.

The Russian rouble slipped to 94.44 per euro as

oil prices slipped after two days of gains.

The Nigerian naira strengthened to 1,597 per

dollar, from 1,628 on Wednesday after the country's central bank

sold $876 million to ease pressure on the currency.

HIGHLIGHTS:

** Fed easing bets, carry trade unwind turn analysts bullish

on Asian currencies

** China exporters loath to convert dollars even as yuan

jumps

** China's treasury bonds fell as state banks sold

seven-year government debt in large volume, and regulators began

probing several small lenders over their trading.

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see