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EMERGING MARKETS-Stocks slip; Zloty tumbles on rate cut talk

LONDON, Oct 10 (Reuters) - The Polish zloty fell half apercent on Wednesday, after comments by central bank boardmembers increased expectations of a rate cut at the next policymeeting, while South Africa's rand steadied following a 1.5percent bounce in the previous session.

Polish central banker Andrzej Bratkowski called for a 75basis point cut to interest rates by the end of the year, addingthat "nothing terrible would happen" if the zloty weakened.Monetary Policy Council member Jerzy Hausner was quoted assaying data would point to the need for a ratecut.

Poland held rates last week but is expected to cut in comingmonths. The comments pushed 2-year and 5-year bond yields lower.

"The zloty is being punished by the very dovish commentswhich make a November rate cut much more likely and they mayeven go down the road of a 50 basis-point cut at the nextmeeting," said Carolin Hecht, a strategist at Commerzbank inFrankfurt.

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MSCI's emerging equitiesfell 0.3 percent, downfor the third day in a row, due to worries over world growth.

The Serb dinar meanwhile rose more than half a percentagainst the euro to new 3-1/2 month highs after the central bankraised interest rates on Tuesday to 10.75 percent, surprisingsome in the market who had expected rates to stay on hold.

The dinar has risen for six straight sessions

.

The South African rand firmed slightly

moving

further away from recent 3-1/2 year lows as some strikingworkers agreed to return to work

.

Central bank Governor Gill Marcus said the country'seconomic outlook was deteriorating rapidly

. Manysee the fallout from the strikes as forcing rate cuts.

"We don't see this move in dollar/rand as sustainable,"Hecht said. "We advise buying on dips as we see more risks ofstrikes, especially in the mining sector."

Turkish assets, meanwhile, were hit by a weaker industrialoutput data and news that a top general had threatened torespond "with greater force" if shelling from Syria continues tospill across the border.

(Reporting by Sujata Rao; Editing by Anthony Barker)

((sujata.rao@thomsonreuters.com)(+44 20 7542 6176sujata.rao.thomsonreuters.com@thomsonreuters.net))

((Emerging Markets Prices from Reuters

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

993.50 -3.09 -0.31 +8.41

Poland

2374.06 -2.18 -0.09 +10.71

Hungary

18838.29 -26.81 -0.14 +10.98

Romania

4780.68 -19.26 -0.40 +10.23

Russia

1488.29 -5.87 -0.39 +3.77

South Africa

31916.57 -23.74 -0.07 +12.11Turkey68194.27 +131.41 +0.19 +33.02China2119.94 +4.71 +0.22 -3.61India18631.10 -162.26 -0.86 +20.55Currencies Latest Prev Local Localclose currency currency% change % changein 2012Czech Rep24.93 24.95 +0.10 +2.48Poland4.09 4.07 -0.43 +9.20Hungary282.04 283.26 +0.43 +11.54Romania4.57 4.57 +0.13 -5.41Serbia113.88 114.61 +0.64 -6.09Russia31.13 31.14 +0.04 +3.43

Kazakhstan

150.53 150.46 -0.05 -1.38Ukraine8.13 8.13 -0.01 -1.67

South Africa

8.68 8.71 +0.26 -7.11Kenya85.05 85.20 +0.18 -0.12Israel3.86 3.87 +0.07 -1.40Turkey1.82 1.82 +0.25 +3.67China6.28 6.29 +0.07 +0.17India53.10 52.68 -0.79 -0.17Brazil2.04 2.04 -0.04 -8.53Mexico12.87 12.88 +0.03 +8.35Debt Index Strip Spd Chg %Rtn IndexSov'gn DebtEMBI+ 269 -3 0.05 691.81

Currency percent change calculated from the daily U.S.

close at 2130 GMT.))Keywords: MARKETS EMERGING