* MSCI EM stocks down 0.2%, FX up 0.1%
* U.S. PCE, Q2 GDP estimates later in the day
* Hungary preliminary Q2 GDP lower-than-expected
By Utkarsh Hathi
July 30 (Reuters) - Most emerging market stocks extended
losses on Thursday as uncertainty over the U.S. Federal
Reserve's policy path and firmer oil prices due to renewed
Middle East tensions kept investors on edge.
The Fed held rates steady on Wednesday, and Fed Chair Kevin
Warsh reiterated the central bank's commitment to contain
inflation, but offered no clues about future action, leaving
markets confused.
Analysts characterized the decision as a "hawkish hold", as
three members dissented and preferred a quarter-point rate hike.
"Markets still think the Fed will tighten policy at some
point, but with two inflation prints and two job reports ahead
of the September FOMC meeting, nothing is guaranteed," said
James Knightley, chief international economist at ING.
The dollar index was stable on Thursday, recovering from
a drop after the Fed decision, with oil prices firming as
traders weighed fresh U.S. attacks on Iran against hopes for a
resolution.
MSCI's global EM currencies index gained
0.1%, while the equivalent equities gauge declined
0.2%.
Meanwhile, Asia's tech-heavy bourses extended losses, as South
Korean shares slipped 1.2%. A brutal selloff in
chipmakers in recent weeks has led the index to lose more than a
third of its value this month, prompting the government to
consider additional curbs on single-stock leveraged
exchange-traded funds.
Chinese equities fell 1.1%, and Taiwan's benchmark
dipped 0.3%.
Bucking the trend, MSCI's index tracking Central and Eastern
Europe rose 1.7%, with Polish stocks
gaining the most, 0.8%. Romanian stocks lost 1.9%,
However, the index has outperformed regional peers this year on
higher crude prices.
Hungarian equities were little changed. Preliminary data
showed the economy grew 1.7% in the second quarter, on an annual
basis, below analysts' expectations. The Czech economy also grew
but slower than expected, data showed.
Except for the Polish zloty, which rose 0.3%
against the euro, other currencies in the region were subdued.
Most Asian currencies were flat to lower against the dollar,
except the Korean won, which advanced 0.3%.
Investors will also scrutinise U.S. June inflation data and
second-quarter economic growth figures, due later in the day,
for clues on monetary policy outlook in the absence of clarity
from the Fed.
South Africa's rand and its stocks were
little changed, while the Turkish lira edged 0.1%
lower, and equities lost 0.6%.
Elsewhere, a drone hit a U.S.-owned gas storage tanker in Egypt
on Wednesday. Egypt's longer-dated bonds slid
1.2 cents, while those in Qatar, Saudi Arabia
, and United Arab Emirates
dropped more than 1 cent, Tradeweb data showed.
For TOP NEWS across emerging markets
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see