EMERGING MARKETS-Emerging market stocks dip, Chinese shares seen falling further

Emerging market stocks dipped on Tuesday, and Chinese shares were seen weakening further on concerns of Beijing trimming support to an economy whose recent performance has beaten expectations.

Surprisingly steady growth data for the first quarter and comments from the Chinese central bank and policymakers have fuelled expectations of a reduction in monetary stimulus. Brokerage Shanxi Securities said it had seen a clear move towards marginal tightening and it was expecting more "corrections" as the stock market reacted.

MSCI's index of developing world stocks drifted marginally lower, while China's Shanghai SE Composite Index slid half a per cent and the mainland's blue-chip equities fell 0.2 per cent. The Shanghai SE Composite has already tumbled 1.7 per cent on Monday and is on course for its worst weekly performance since December 2018.

A firm U.S. dollar kept gains among developing world currencies in check although a rise in oil prices to 2019 high aided the currencies of net energy exporters such as Russia, whose rouble firmed 0.2 per cent while keeping the pressure on those of net importers such as India, whose rupee weakened. Russian stocks lifted 0.4 per cent, gaining for a third straight session. Energy stocks and financials propped up the benchmark and set it on track for an all-time closing high.

Turkey's lira weakened marginally in local holiday-thinned trade. South Africa's rand was 0.3 per cent softer while local stocks edged up 0.1 per cent on gains among chemicals and energy firm Sasol Ltd and wood fibre firm Sappi Ltd.

Emerging European currencies broadly firmed against the euro, with Croatia's kuna 0.2 per cent stronger. The Polish zloty softened 0.1 per cent against the euro. Data for March showed a slowdown in retail sales growth to 3.1 per cent year on year, less than the 3.9 per cent expected by economists in a Reuters poll.