EMERGING MARKETS-Stocks start September higher on China boost ahead of U.S. jobs data

The Russian rouble slipped to 96.2 per dollar following an increase in the previous trading day. Data showed Russian factory activity grew at the strongest rate in three months in August as new orders gained momentum.

Emerging market shares and currencies rose on Friday, as Beijing's new support measures lifted China's stocks and the yuan, while investors focused on U.S. jobs data later in the day for cues on the Federal Reserve's monetary policy path.

The MSCI's index for emerging market stocks gained 0.3%, after a 6.4% monthly loss in August. The currencies index inched 0.1% up against a slightly weakened dollar.

China's blue-chip CSI300 Index and the Shanghai Composite Index closed 0.7% and 0.4% higher, respectively, boosted by property stocks as Beijing rolled out more measures to support the sputtering housing sector and factory activity surprisingly expanded last month. The Hong Kong market was closed due to typhoon Saola.

China's yuan hit a three-week high against the dollar after central bank cut the amount of foreign exchange that banks must hold as reserves. Indian shares climbed following data that showed the economy grew at its quickest pace in a year in the first quarter, which could boost foreign investor inflows.

Economists at Nomura and Morgan Stanley raised their economic growth forecast for India's fiscal 2024, while BofA Global Research economists cut their estimates as quarterly growth missed their forecast. The Russian rouble slipped to 96.2 per dollar following an increase in the previous trading day.

Data showed Russian factory activity grew at the strongest rate in three months in August as new orders gained momentum. "Notably, both the input and output prices balances in Russia both increased strongly and are at their highest level in over a year, suggesting that currency weakness and limited spare capacity are continuing to add to inflation pressures," Nicholas Farr, emerging Europe economist at Capital Economics, said.

The zloty was flat against the euro after data showed the slump in Polish manufacturing deepened further in August, possibly tilting the balance in favour of the first reduction in interest rates in more than two years next week. Manufacturing figures in Hungary and the Czech Republic showed a similar picture, with both output and new orders showing contractions as the region grapples with double-digit inflation and economic weakness in the euro zone.

Hungary's forint slid 0.7%, while the Czech crown slipped 0.1% against the euro. Investors also eyed Brazil's economic data later in the day, where growth in the largest economy in Latin America is expected to slow sharply in the second quarter.

Elsewhere, the African Union on Thursday suspended Gabon's membership one day after military officers ousted President Ali Bongo, while Pakistan raised petrol and diesel prices to a record high.