EMERGING MARKETS-Stocks, FX ease as hot U.S. inflation dampens early rate cut hopes

In Europe, Hungary's forint weakened 0.3% against the Euro after a preliminary reading showed the country's economy remained unchanged in the fourth quarter, below analysts' forecasts for a 0.9% expansion. Year-on-year inflation in Romania rose more than expected to 7.41%.

Most emerging markets stocks and currencies dipped on Wednesday, as investors scaled back hopes of early interest rate cuts by the Federal Reserve following a blow-out inflation reading, while Hungary's forint weakened on a soft GDP reading.

By 0906 GMT, MSCI's index for emerging markets stocks dipped 0.1%, while a gauge of currencies lost 0.2%. Currencies and stocks around the world came under pressure after data on Tuesday showed U.S. consumer prices rose more than expected in January amid a surge in the cost of rental housing.

"High inflation will remain fairly sticky and part of it is due to the continued strength in the US economy," said Gary Tan, portfolio manager (emerging market equities) at Allspring Global Investments. Traders now see a close to 80% chance of an at least 25-basis point cut by the Fed in June as per CME's FedWatch Tool.

Equities in South Korea ended 1.1% lower, while India's S&P BSE Sensex fell 0.1%. In Europe, Hungary's forint weakened 0.3% against the Euro after a preliminary reading showed the country's economy remained unchanged in the fourth quarter, below analysts' forecasts for a 0.9% expansion.

Year-on-year inflation in Romania rose more than expected to 7.41%. The Romanian leu held steady at 4.9736 per Euro. The Polish zloty was last down 0.2% against the Euro after a first estimate showed the country's GDP rose 1.0% year-on-year in the fourth quarter, below analysts' forecasts of a 1.1% rise.

South Africa's rand fell 0.2% against the dollar ahead of the release of December retail sales data. Stocks in South Africa fell 0.6% while in the Gulf, Saudi Arabian stocks rose 0.1% and Dubai shares added 0.2%.

Markets in EM heavyweight China are closed for the Lunar New Year holidays and will resume trade on Monday, Feb. 19. Meanwhile, Pakistan's benchmark share index rose 1.3% a day after former Prime Minister Shehbaz Sharif was nominated as the country's next premier to lead an alliance formed between different parties.

India's financial crime fighting agency is seeking details on overseas transactions from Paytm Payments Bank, a unit of one of the country's largest payment operators One 97 Communications , according to two sources. Its shares were last down 10%. HIGHLIGHTS:

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** Namibia central bank leaves main rate on hold For TOP NEWS across emerging markets

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