EMERGING MARKETS-EM assets on track for best week since June; US jobs data eyed

Emerging market assets rose on Friday, on track to record their best week since June as optimism on the U.S.-China trade front buoyed sentiment, while investors awaited U.S. jobs data later in the day for cues on future monetary policy. MSCI's index for emerging market stocks rose to their highest levels since Aug 2, with Asian markets doing most of the heavy lifting and ending what has been a largely positive week for developing world assets.

Mainland Chinese stocks logged their best week since June, helped by hopes of a de-escalation in the protracted Sino-U.S. trade dispute and Beijing's vow to further boost the economy. Hong Kong's Hang Seng was up 0.4%, with some earlier gains trimmed after rating agency Fitch downgraded the city's credit rating following months of unrest.

Indices outside Asia lagged, with Moscow stocks down 0.8% as energy stocks took a beating. Most developing world currencies were higher against a tepid dollar, with China's onshore yuan scaling a two-week high.

Russia's rouble moved 0.4% higher ahead of the central bank's rate decision later in the day where officials are expected to trim the key interest rate to 7.00% from 7.25%, a Reuters poll of economists showed. "Given that high-interest rates are the main source of support for the rouble, it would be prudent for the CBR to send a less dovish/more hawkish message," said Piotr Matys, emerging markets fx strategist, Rabobank, in a note.

"The bank may adopt a cautious tone and perhaps indicates that today's cut could be followed by a prolonged pause." Turkey's lira lagged the broader market, down 0.2% but was on track to end the week higher after three consecutive weeks of losses.

In emerging Europe, Hungary's forint moved 0.1% higher against the dollar after data showed the country posted a trade surplus of 276 million euros in July, above analysts' 135 million euro forecast in a Reuters poll. In some relief for battered emerging markets, specialist EM investor Ashmore said on Friday it saw its assets under management grow by 24% for the year ending June 30, helped by both inflows and positive market performance.

Investors will now be eyeing monthly U.S. non-farm payrolls data due at 1230 GMT, with analysts cautioning that any weakness could suggest a slowing U.S. economy impact financial markets. For TOP NEWS across emerging markets

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