EMERGING MARKETS-Stocks hit six-week highs, Czech crown under pressure

Markets in China are closed for the Lunar New Year holidays and will resume trade on Monday, Feb. 19. HIGHLIGHTS: ** Thailand sticking with handout plan to lift 'fragile' economy ** Saudi inflation rate rises to 1.6% in January ** Kenyan central bank buys dollars to curb volatility as shilling rallies For TOP NEWS across emerging markets For CENTRAL EUROPE market report, see For TURKISH market report, see For RUSSIAN market report, see

A gauge of emerging market stocks advanced on Thursday, propped up by strong gains across Asian bourses, while the Czech crown and Poland's zloty lost ground as inflation eased in their respective economies.

By 0907 GMT, MSCI's index for emerging market stocks advanced 0.8%, touching its highest in over six weeks, while a broader gauge of EM currencies was flat. The Czech crown slipped 0.4%, hitting a 23-month low against the euro after data showed Czech consumer prices rose 2.3% in January from a year earlier, its slowest pace since March 2021.

"A few Czech MPC members have already come out this morning with hawkish comments ... but we still think today's figures provide a green light for a larger rate cut at the next meeting," Liam Peach, senior emerging markets economist at Capital Economics, wrote in a note. Czech interest rates will stay elevated until it is clear that inflation will remain at the 2% target, and how the crown performs will also play a role, central bank Vice-Governor Eva Zamrazilova said in a post on social media platform X.

The crown has been underperforming since last week when the Czech National Bank (CNB) delivered a 50-basis-point interest rate cut to its main repo rate. Poland's zloty also eased 0.2% after a final estimate showed consumer pries in the country rose 0.40% in January against economists' estimates of a 0.45% rise.

Most EM currencies have been under pressure this week, hurt by the dollar's recent resurgence following a surprise uptick in January U.S. consumer prices. Shares in Indonesia jumped 1.6% after unofficial counts showed Defence Minister Prabowo Subianto winning this week's presidential election in a single round of voting.

Taiwan stocks advanced 3.0%, touching record highs after the Lunar New Year holiday break, boosted by an advance in chip stocks. Chipmaker TSMC soared as much as 7.9% to an all-time high. Equities in Europe also had a positive start to the session, with shares in Budapest adding 0.9%, lifted by gains in financials and health care stocks.

Warsaw stocks slipped 0.2%, while Turkish stocks rose as much as 1.3%. In the Gulf, Saudi Arabian stocks were up 0.4%, while Dubai equities gained 0.1% following a slew of upbeat corporate earnings.

South Africa's rand gained 0.1% against the dollar, while Johannesburg shares were last up 0.5%. Elsewhere in emerging markets, the Philippine central bank kept its benchmark interest rate steady at 6.50% for a third straight meeting.

Israel's shekel rose 0.5% against the dollar ahead of the release of January consumer price data due later in the day. Markets in China are closed for the Lunar New Year holidays and will resume trade on Monday, Feb. 19.

HIGHLIGHTS: ** Thailand sticking with handout plan to lift 'fragile' economy

** Saudi inflation rate rises to 1.6% in January ** Kenyan central bank buys dollars to curb volatility as shilling rallies

For TOP NEWS across emerging markets For CENTRAL EUROPE market report, see

For TURKISH market report, see For RUSSIAN market report, see