EMERGING MARKETS-Stocks, FX drop on China drag; Russia, Colombia rate verdicts loom

* Russia, Colombia rate decision due * IMF board OKs $880 mln loan payment for Ukraine * POLL-South Africa to hold repo rate at 8.25% on Wed By Ankika Biswas March 22 (Reuters) - Chinese shares and the yuan weighed on the emerging market stocks and currencies indexes on Friday, while investors awaited interest rate decisions from Russia and Colombia in a week packed with major central bank decisions.

* Russia, Colombia rate decision due

* IMF board OKs $880 mln loan payment for Ukraine

* POLL-South Africa to hold repo rate at 8.25% on Wed

By Ankika Biswas March 22 (Reuters) -

Chinese shares and the yuan weighed on the emerging market stocks and currencies indexes on Friday, while investors awaited interest rate decisions from Russia and Colombia in a week packed with major central bank decisions. The MSCI index for EM stocks dropped 0.8% after jumping 1.5% on Thursday, but was set to end the week higher as markets cheered the Federal Reserve's affirmation of three rate cuts this year, while Switzerland's surprise rate cut saw investors wagering on who will ease policy next.

Chinese equities fell, with the Hang Seng index and blue-chip CSI 300 losing 2.2% and 1%, respectively, dampening upbeat sentiment across emerging markets. The currencies gauge fell 0.5% to a more than one-month low, with the onshore yuan dropping to 7.24 per dollar, its weakest since Nov. 17, 2023.

The week also saw Britain's indication of cuts and Japan's first hike in 17 years. Within the EM space, Turkey unveiled a surprise bumper rate hike, Brazil delivered a 50 basis points rate cut, and Mexico cut its rate for the first time since 2021, among others.

"The path toward policy easing in 2024 in G10 and in EM is still there. It's been questioned and challenged a bit lately by recent inflation prints," said Michael Bolliger, chief investment officer, emerging markets, at UBS Global Wealth Management. Russia's central bank decision is due later in the day, and borrowing rates are widely expected remain unchanged at 16%. The rouble weakened to 92.75 per dollar.

South Africa's rand also weakened 0.9% against the dollar. A Reuters poll showed the country's Reserve Bank will keep its repo rate steady on March 27, and wait until third quarter to start cuts. Hungary's forint dropped 0.6% against the euro, taking the biggest hit among its regional peers, with the Czech crown also losing 0.2%.

Earlier this week, the Czech National Bank cut its rate by 50 bps and maintained a cautious approach to easing cycle. Among other developments, the International Monetary Fund approved a third review of Ukraine's $15.6 billion loan program, allowing $880 million for budget support and bringing total disbursements to $5.4 billion, while expecting the war to wind down by the end of 2024.

Elsewhere, Colombia is seen speeding up cuts to its benchmark rate amid slower inflation and a struggling economy. HIGHLIGHTS:

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