*

EM stocks down 0.2%

*

South Korean and Indian carmakers selloff after U.S.

tariffs

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Namibia finance minister presents budget later in the day

By Shashwat Chauhan

March 27 (Reuters) - Most emerging market stocks turned

lower on Thursday after U.S. President Donald Trump announced

new tariffs on auto imports, while currencies were broadly

steady as investors assessed the risks of a global trade war.

Stocks and currencies in emerging Europe were broadly lower,

with MSCI's gauge for Eastern Europe falling

0.2% after Trump unveiled a 25% tariff on imported vehicles,

which will take effect on April 3, a day after he plans to

announce reciprocal tariffs.

Among currencies, Hungary's forint weakened 0.3%

against the euro, while Poland's zloty shed 0.2%.

A broader gauge for emerging market stocks also

dipped 0.2%, though gains in heavyweight China helped

mitigate some losses.

Stocks in South Korea lagged, with automakers like

Hyundai Motor ( HYMTF ) and Kia Corp ( KIMTF ) logging sharp

declines, while Indian automaker Tata Motors and auto

parts makers were also swept up in the selling pressure.

The global currencies market, however, remained sanguine

early on, as Trump also hinted that reciprocal tariffs will be

"very lenient".

"Perhaps the FX market is dealing with tariff fatigue, and

apart from already being priced in, the muted reaction may be a

result of Trump suggesting that next week's reciprocal tariffs

could be quite lenient," ING analysts said.

The tariff-exposed Mexican peso weakened 0.2%, with a

likely 50-basis-point interest rate cut also expected by the

Bank of Mexico later in the day.

South Africa's rand appreciated 0.2% against the

dollar ahead of a local producer prices reading, while weakness

in mining stocks pushed local stocks down 0.1%.

Ukraine's international bonds were marginally lower

following steep losses in the previous session when a

U.S.-brokered truce between Kyiv and Moscow on energy strikes

appeared to falter.

Namibia's newly chosen finance minister Ericah Shafudah will

present the country's 2025 budget later in the day.

Despite Thursday's weakness, EM stocks are headed for their

best monthly showing since September, benefitting from weakness

in the dollar, prospects of increased fiscal spending in Europe,

and a broad recovery in Indian and Chinese shares.

HIGHLIGHTS:

** Hungary's government raises 2025 inflation forecast to 4.5%

** IMF says 'urgent reforms' needed to address Senegal's debt

woes

** Lebanon bondholders pick Houlihan Lokey as financial advisors

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