EMERGING MARKETS-Stocks rise for fourth straight session

Russia's rouble weakened 0.3%, with geopolitical tensions still looming large and ahead of an OPEC meeting that is expected to add supply on signs fuel demand remains robust despite the spread of the Omicron coronavirus variant. South Africa's rand was flat, while most currencies in Asia slipped, with the Chinese yuan sliding 0.2% for its worst session in over three weeks.

Emerging market stocks firmed for the fourth straight session on Tuesday, even as declines in China capped gains and Turkey's lira slipped nearly 4% in volatile trade. The lira was still reeling from Monday's data, which showed a surge in the country's inflation rate to its highest in 19 years following the implementation of an unorthodox rate-cutting policy.

The currency has seen wild swings in thin trade over the last few sessions. The lira ended 2021 down 44%, the worst among EM peers by a significant margin. Russia's rouble weakened 0.3%, with geopolitical tensions still looming large and ahead of an OPEC meeting that is expected to add supply on signs fuel demand remains robust despite the spread of the Omicron coronavirus variant.

South Africa's rand was flat, while most currencies in Asia slipped, with the Chinese yuan sliding 0.2% for its worst session in over three weeks. The Polish zloty was steady ahead of a central bank meeting. The rate is seen being hiked to 2.25% from 1.75%.

MSCI's index of EM stocks climbed 0.2%, while benchmark indexes in China slipped 0.2% and 0.5%. Hong Kong shares ended flat as technology and internet stocks were dragged down by new cybersecurity rules in China.

"China's weight in the MSCI EM (equity) index could rise from 35% to 45% as more of its onshore market cap is included," Michael Cembalest, investment strategist at J.P. Morgan Asset & Wealth Management, said. "We will still believe the long run opportunity in China is compelling, despite the 2021 regulatory purge".

China Evergrande Group rose 10% to HK$1.75, before trimming gains as investors in financial products issued by embattled real estate developer protested outside the company's offices in Guangzhou. Most other emerging markets across Asia, Europe, Middle East and Africa firmed, with Turkish stocks hitting two week highs, up 2.2%, while Russian shares hit near one-month highs. South Africa's benchmark was just 0.4% away from all-time highs hit in the previous session.

Data showed Asia's factory activity grew in December, with China's beating forecasts to grow at its fastest pace in six months, but uncertainty remained due to the surge in COVID-19 cases. For GRAPHIC on emerging market FX performance in 2021, see http://tmsnrt.rs/2egbfVh

For GRAPHIC on MSCI emerging index performance in 2021, see https://tmsnrt.rs/2OusNdX For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see For TURKISH market report, see

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