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EMERGING MARKETS-Weaker on growth worry; rand at 3-1/2-yr low

LONDON, Oct 8 (Reuters) - The South African rand plunged to a new 3-1/2 year low against the dollar as the worst bout of labour unrest since the end of apartheid rattles the market, while growth worries weighed on broader emerging markets.

The rand tumbled 2.4 percent, extending losses chalked up on Friday when Anglo American Platinum

said it had fired 12,000 wildcat strikers.

Equities were less affected, losing 0.5 percent

while bond yields rose to three-week highs.

"It's all the local news about strikes. All the negativity from last week is ongoing," said Jan Defouw, a trader at Standard Bank in Johannesburg.

Analysts say the rand is also being hit as some investors exit bond markets after South African debt made its debut last week in Citi's closely tracked World Government Bond Index.

"It's likely that there has been some capitulation among the fast money community who were still positioning for the WGBI very late after it was announced," said Roderick Ngotho, a senior emerging markets strategist at RBS.

"As South African equities are still holding up, including the resources index, this sell-off in the FX and bonds looks more like a post-WGBI position reduction."

Broader emerging equities

fell 1.2 percent to a 12-day low, after the World Bank cut its growth forecast for the East Asia and Pacific region, including China while a fall in oil prices pushed Russian equities down 1.5 percent.

Chinese stocks lost more than half a percent

after a week of public holiday, weighed down by worries over growth, especially after the World Bank said there was a risk the slowdown in China could worsen and last longer than expected.

Russian stocks were the biggest losers, falling almost 1.5 percent

, as Brent crude fell to below $111 per barrel

and the rouble slipped a half percent

.

Turkish equities were flat but the lira fell 0.3 percent as sporadic bombardments from Syria and retaliatory fire from Turkish forces continued at the weekend

.

Venezuela's bonds and credit default swaps did not react to news that socialist President Hugo Chavez has won re-election

. Venezuela's portion of the EMBI Global bond index was 2 basis points tigher at 933 bps .

"We may see a further entrenchment of the Bolivarian Revolution but bond holders have done well out of that so unless oil prices tank, you are not going to see massive declines," said Stuart Culverhouse, head of research at brokerage Exotix.

(Reporting by Shadia Nasralla)

((shadia.nasralla@thomsonreuters.com)(+44 20 7542 5213 shadia.nasralla.thomsonreuters.com@thomsonreuters.net))

((Emerging Markets Prices from Reuters

Equities Latest Net Chg % Chg % Chg on year Morgan Stanley Emrg Mkt Indx

996.12 -13.04 -1.29 +8.70

Poland

2397.95 -13.12 -0.54 +11.82

Hungary

18946.79 -177.67 -0.93 +11.62

Romania

4798.66 -27.52 -0.57 +10.65

Russia

1485.73 -22.99 -1.52 +3.59

South Africa

32272.80 -89.11 -0.28 +13.36 Turkey 67428.61 +44.93 +0.07 +31.53 China 2074.42 -11.75 -0.56 -5.68 India 18708.98 -229.48 -1.21 +21.06 Currencies Latest Prev Local Local close currency currency % change % change in 2012 Czech Rep 24.91 24.88 -0.14 +2.55 Poland 4.08 4.07 -0.25 +9.36 Hungary 284.16 282.75 -0.50 +10.71 Romania 4.57 4.57 -0.05 -5.48 Serbia 114.89 114.84 -0.04 -6.91 Russia 31.16 31.00 -0.54 +3.31

Kazakhstan

150.33 150.27 -0.04 -1.24 Ukraine 8.11 8.11 +0.00 -1.44

South Africa

8.92 8.73 -2.14 -9.59 Kenya 84.90 84.80 -0.12 +0.06 Israel 3.86 3.86 -0.15 -1.38 Turkey 1.81 1.80 -0.38 +4.09 China 6.29 6.28 -0.05 +0.10 India 52.46 51.90 -1.07 +1.05 Brazil 2.03 2.03 -0.05 -8.29 Mexico 12.86 12.79 -0.59 +8.43 Debt Index Strip Spd Chg %Rtn Index Sov'gn Debt EMBI+ 261 -1 -0.05 695.18

Currency percent change calculated from the daily U.S.

close at 2130 GMT.)) Keywords: MARKETS EMERGING