EMERGING MARKETS-Turkey's lira inches up after GDP data; US inflation data on tap

More broadly, MSCI's gauge for developing markets currencies slipped 0.3% by 0946 GMT, easing from a nineteen-month high it hit in the previous session. The currencies index is on course to end November with a 2.7% gain, its best monthly performance in a year, as investors warm to riskier emerging markets assets on optimism that interest rate hikes in the U.S. have peaked.

Turkey's lira edged up on Thursday after data showed the local economy grew faster than expected in the third quarter, while most emerging markets stocks were steady ahead of a key inflation reading in the United States.

The lira strengthened to 28.85 against the greenback after data showed Turkey's economy expanded by 5.9% in the third quarter, boosting expectations of a further 250 basis points rate hike by the central bank in December. Nevertheless, analysts predicted Turkey's economy would begin to slow after aggressive monetary tightening designed to cool demand and inflation.

"With the central bank set to keep interest rates at a restrictive level over the coming quarters, growth looks set to slow further in 2024 and this will help to narrow the current account deficit and cool inflation pressures," said Liam Peach, senior emerging markets economist at Capital Economics. More broadly, MSCI's gauge for developing markets currencies slipped 0.3% by 0946 GMT, easing from a nineteen-month high it hit in the previous session.

The currencies index is on course to end November with a 2.7% gain, its best monthly performance in a year, as investors warm to riskier emerging markets assets on optimism that interest rate hikes in the U.S. have peaked. The index tracking equities inched up 0.1% and is on track to close November 7.6% higher, its best month since January.

Traders will also focus on U.S. October personal consumption expenditure data, due at 1330 GMT, that could test bets that the U.S. Federal Reserve could start monetary easing in the first half of 2024. Meanwhile, Sri Lanka's main stock index extended gains, adding 0.9% after the International Monetary Fund said the country's pact with creditor nations to restructure its debt could pave the way for the global lender to consider clearing the first review of a bailout next month.

China's spot yuan saw little change after a purchasing managers' index (PMI) showed local factory activity shrank in November and at a quicker pace to 49.4. However, Hong Kong stocks closed up 0.3%, buoyed by a 11.6% surge in China Evergrande Group after Reuters reported that the indebted property developer, is seeking to avert a potentially imminent liquidation with a last-minute debt restructuring proposal.

India's rupee was flat ahead of quarterly gross domestic product figures due at 1200 GMT, which are expected to show the economy continued its strong growth at 6.8%. In eastern Europe, Poland's zloty was muted after a flash estimate showed a rise in November consumer inflation to 6.5%, compared with expectations of a 6.6% increase.