EMERGING MARKETS-Stocks up as Fed soothes rate hike fears, HK shares close eighth day higher

Emerging market stocks rose on Thursday, with many regional bourses returning from a mid-week holiday and boosted by a less hawkish tone from the U.S. Federal Reserve than feared, while Hong Kong's Hang Seng index rose for an eighth straight session. The MSCI index for emerging market stocks added 0.5%, while currencies climbed 0.1% by 0834 GMT, tracking the global markets rally as Fed chair Jerome Powell's characterization of rate hikes as "unlikely" cheered investors.

Emerging market stocks rose on Thursday, with many regional bourses returning from a mid-week holiday and boosted by a less hawkish tone from the U.S. Federal Reserve than feared, while Hong Kong's Hang Seng index rose for an eighth straight session.

The MSCI index for emerging market stocks added 0.5%, while currencies climbed 0.1% by 0834 GMT, tracking the global markets rally as Fed chair Jerome Powell's characterization of rate hikes as "unlikely" cheered investors. The Hang Seng rose 2.5%, kicking off May on an upbeat note after the Labor Day holiday, led by gains in technology, property and financial stocks.

Beijing's vow earlier this week to step up economic support with prudent monetary and proactive fiscal policies also helped underpin sentiment. The Hong Kong Monetary Authority kept its base rate charged through the overnight discount window unchanged at 5.75%, tracking the Fed's decision to keep rates steady.

Mainland China markets are closed for holidays from May 1-3. Among currencies, the Hungarian forint climbed 0.4% against the euro, outpacing central and eastern European peers.

Data showed CEE manufacturers suffered in April, with a decline in factory activity deepening in Poland and the Czech Republic and Hungary's outlook softening. The Czech crown was nearly flat ahead of an interest rate decision, where the Czech National Bank (CNB) is likely to deliver its third straight 50-basis-point cut, while Poland's zloty slipped 0.2% against the euro.

"The weak set of manufacturing PMIs out of Central and Eastern Europe for April suggest that industrial sectors remained a drag on the regional recovery at the start of Q2," said Nicholas Farr, emerging Europe economist at Capital Economics. The Russian rouble advanced to 92.08 from 93 per dollar, while the South African rand gained 0.3%.

Data showed activity in Russia's manufacturing sector grew in April at the slowest rate in three months. The Turkish lira inched up against a softer dollar, unruffled by a PMI survey showing Turkish factory activity fell back into contraction territory in April.

"In Turkey and Russia, the PMIs brought further evidence that price pressures remain intense," Farr added. Elsewhere in emerging markets, South Korea unveiled guidelines for companies participating in a government programme aimed at enhancing shareholder value.

Ratings agency Moody's revised Brazil's outlook to positive from stable on Wednesday, citing stronger economic growth while maintaining the Ba2 credit rating for the country. Growth in India's manufacturing sector slowed marginally in April but remained robust thanks to strong demand, a survey showed.

HIGHLIGHTS: ** Latin America's 7 largest economies to grow 1.4% this year, OECD forecasts

** India cenbank's FX intervention eases as conditions turn favourable for rupee

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)