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

LONDON, Oct 8 (Reuters) - The South African rand plunged toa new 3-1/2 year low against the dollar as the worst bout oflabour 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 onFriday when Anglo American Platinum

said it had fired12,000 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 negativityfrom last week is ongoing," said Jan Defouw, a trader atStandard Bank in Johannesburg.

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

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

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

Broader emerging equities

fell 1.2 percent to a12-day low, after the World Bank cut its growth forecast for theEast Asia and Pacific region, including China while a fall inoil prices pushed Russian equities down 1.5 percent.

Chinese stocks lost more than half a percent

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

Russian stocks were the biggest losers, falling almost 1.5percent

, 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 assporadic bombardments from Syria and retaliatory fire fromTurkish forces continued at the weekend


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

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

"We may see a further entrenchment of the BolivarianRevolution but bond holders have done well out of that so unlessoil 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 5213shadia.nasralla.thomsonreuters.com@thomsonreuters.net))

((Emerging Markets Prices from Reuters

Equities Latest Net Chg % Chg % Chgon yearMorgan StanleyEmrg Mkt Indx

996.12 -13.04 -1.29 +8.70


2397.95 -13.12 -0.54 +11.82


18946.79 -177.67 -0.93 +11.62


4798.66 -27.52 -0.57 +10.65


1485.73 -22.99 -1.52 +3.59

South Africa

32272.80 -89.11 -0.28 +13.36Turkey67428.61 +44.93 +0.07 +31.53China2074.42 -11.75 -0.56 -5.68India18708.98 -229.48 -1.21 +21.06Currencies Latest Prev Local Localclose currency currency% change % changein 2012Czech Rep24.91 24.88 -0.14 +2.55Poland4.08 4.07 -0.25 +9.36Hungary284.16 282.75 -0.50 +10.71Romania4.57 4.57 -0.05 -5.48Serbia114.89 114.84 -0.04 -6.91Russia31.16 31.00 -0.54 +3.31


150.33 150.27 -0.04 -1.24Ukraine8.11 8.11 +0.00 -1.44

South Africa

8.92 8.73 -2.14 -9.59Kenya84.90 84.80 -0.12 +0.06Israel3.86 3.86 -0.15 -1.38Turkey1.81 1.80 -0.38 +4.09China6.29 6.28 -0.05 +0.10India52.46 51.90 -1.07 +1.05Brazil2.03 2.03 -0.05 -8.29Mexico12.86 12.79 -0.59 +8.43Debt Index Strip Spd Chg %Rtn IndexSov'gn DebtEMBI+ 261 -1 -0.05 695.18

Currency percent change calculated from the daily U.S.

close at 2130 GMT.))Keywords: MARKETS EMERGING