EMERGING MARKETS-IMF growth warnings weigh, China rallies

LONDON, Oct 9 (Reuters) - Emerging stocks were littlechanged on Tuesday as hopes that China's markets could be openedup further to offshore investors counterbalanced growth warningsfrom the International Monetary Fund.

Chinese stocks

jumped 2 percent after a report inthe China Daily said market regulators had promised to speed upapprovals for quotas for foreigners investing in the country'smarkets.

The International Monetary Fund said on Monday the globaleconomic slowdown was worsening as it cut its growth forecastsfor the second time since April.

Emerging markets are still expected to grow four times asfast as advanced economies, but the IMF took a sharp knife toits estimates for India and Brazil, with the latter now seengrowing slower than the United States this year.

China is the largest component of the MSCI emerging stocksindex

, which was steady on the day. Emerging sovereigndebt spreadswidened by five basis points over U.S.Treasuries.The rand

rose 1.5 percent, recovering ground afterhitting 3-1/2 year lows in the previous session due to strikesthat have hit the mining, manufacturing and transport sectors.

South Africa's five-year credit default swaps rose 2 bps to3-1/2 month highs of 165 bps, according to Markit, and haverisen nearly 50 bps since August.

"Costs to insure five-year South African credit risk wereseen rising during the last three months, while other countriesin EEMEA enjoyed huge tightening," said analysts at SEB in aclient note.

"The sell-off was caused by fears that labour unrest in thecountry is spreading from mining to other sectors as well."

Emerging European currencies were mostly steady. The Serbiandinar

approached three-month highs ahead of anexpected rate rise.


For GRAPHIC on MSCI emerging index performance 2012, see

For GRAPHIC on MSCI emerging Europe performance 2012, see

For GRAPHIC on MSCI frontier index performance 2012, see

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see


(Reporting by Carolyn Cohn; Editing by John Stonestreet)

((carolyn.cohn@reuters.com)(Reuters Messagingcarolyn.cohn.thomsonreuters.com@reuters.net)(+44 207 542 6320))

((Emerging Markets Prices from Reuters

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

999.25 +1.32 +0.13 +9.04


2391.54 -9.45 -0.39 +11.52


18941.37 -24.88 -0.13 +11.59


4785.60 -11.54 -0.24 +10.34


1495.99 +3.48 +0.23 +4.31

South Africa0.00 +0.00 +0.00 -100.00Turkey67442.75 +7.38 +0.01 +31.55China2115.23 +40.81 +1.97 -3.83India18780.80 +71.82 +0.38 +21.52Currencies Latest Prev Local Localclose currency currency% change % changein 2012Czech Rep24.90 24.93 +0.14 +2.61Poland4.07 4.07 -0.12 +9.60Hungary284.15 283.30 -0.30 +10.72Romania4.56 4.57 +0.02 -5.34Serbia114.56 114.73 +0.15 -6.64Russia31.11 31.17 +0.19 +3.48


150.46 150.36 -0.07 -1.33Ukraine8.12 8.12 +0.00 -1.51

South Africa

8.77 8.89 +1.42 -7.99Kenya85.00 85.00 +0.00 -0.06Israel3.86 3.86 -0.01 -1.46Turkey1.81 1.81 -0.18 +3.97China6.29 6.29 -0.00 +0.10India52.67 52.54 -0.24 +0.66Brazil2.03 2.03 -0.08 -8.27Mexico12.80 12.80 -0.03 +8.96Debt Index Strip Spd Chg %Rtn IndexSov'gn DebtEMBI+ 267 4 -0.26 693.73

Currency percent change calculated from the daily U.S.

close at 2130 GMT.))Keywords: MARKETS EMERGING