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EMERGING MARKETS-Emerging stocks bounce, currencies weaken ahead of Fed minutes

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LONDON, July 5 (Reuters) - Emerging market stocks bounced on Wednesday after their biggest fall in nearly three weeks but currencies came under pressure ahead of Federal Reserve minutes while investors awaited the latest development on the Qatar crisis.

MSCI's emerging market index gained 0.3 percent, lifted by gains in Asia where bourses recovered from losses sustained in the previous session as North Korea's latest missile test heightened the tensions on the Korean peninsula.

Stocks in mainland China and Hong Kong rose as much as 1 percent, while bourses in South Korea and South Africa picked up around 0.5 percent.

However, the picture looked different in the Gulf where stock markets came under pressure ahead of a meeting later in the day in Cairo of the four Arab states that are boycotting it.

Saudi Arabia, the United Arab Emirates, Egypt and Bahrain were due to meet to decide whether to continue sanctions they imposed on Qatar on accusations it was aiding terrorism and courting regional rival Iran. Doha denies the charges and has submitted to mediator Kuwait replies to 13 demands that the gathering will consider.

Qatar's stock market index stayed near January 2016 lows while Riyadh's bourse fell 0.4 percent, extending the previous day's sharp fall.

"All eyes on the increasingly complex GCC (Gulf Cooperation Council) backdrop," wrote Simon Quijano-Evans, emerging market strategist at Legal & General Investment Management in a note to clients.

"Moody's cut Qatar's outlook to negative - if this escalates, we would see plenty more negative ratings action across the whole of GCC, with Oman and Bahrain still the weakest links from a macro/FX reserves point of view," he added.

Easing commodity prices and crude oil falling more than 1 percent due to another rise in OPEC supplies weighed on currencies.

Russia's rouble sustained some of the biggest losses, weakening 1 percent. South Africa's rand and Turkey's lira nearly matched those falls against a dollar struggling higher.

Adding to investors' woes were the minutes of the U.S. Federal Reserve meeting, which will be scrutinized by investors for signs of more concern among policymakers about a downturn in inflation and activity in the United States.

A shift towards more hawkish language by several major central banks has dominated the past week and left markets unsure of how much longer emergency stimulus in Europe will continue to support global asset prices.

For GRAPHIC on emerging market FX performance 2017, see http://tmsnrt.rs/2e7eoml For GRAPHIC on MSCI emerging index performance 2017, see http://tmsnrt.rs/2dZbdP5

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see)

Emerging Markets Prices from Reuters

Equities Latest Net Chg % Chg % Chg

on year

Morgan Stanley

Emrg Mkt Indx 1008.42 +1.70 +0.17 +16.95 Czech Rep 986.78 +5.51 +0.56 +7.07 Poland 2302.04 +7.77 +0.34 +18.18 Hungary 34959.54 +69.98 +0.20 +9.24 Romania 8043.95 +115.28 +1.45 +13.53 Greece 835.32 +9.43 +1.14 +29.78 Russia 1007.31 -10.28 -1.01 -12.58 South Africa 46038.80 +218.92 +0.48 +4.87 Turkey 01014.95 -192.84 -0.19 +29.28 China 3207.08 +24.28 +0.76 +3.33 India 31218.02 +8.23 +0.03 +17.24 Currencies Latest Prev Local Local close currency currency

% change % change

in 2017

Czech Rep 26.15 26.13 -0.06 +3.29

Poland 4.25 4.24 -0.24 +3.71

Hungary 307.99 307.79 -0.06 +0.27

Romania 4.58 4.58 -0.04 -1.07

Serbia 120.47 120.70 +0.19 +2.39

Russia 59.85 59.41 -0.74 +2.36

Kazakhstan 324.45 322.66 -0.55 +2.84

Ukraine 26.10 26.04 -0.23 +3.45

South Africa 13.26 13.18 -0.62 +3.52

Kenya 103.70 103.70 +0.00 -1.28

Israel 3.52 3.51 -0.15 +9.48

Turkey 3.59 3.56 -0.82 -1.70

China 6.80 6.80 +0.00 +2.13

India 64.82 64.78 -0.07 +4.82

Brazil 3.31 3.31 -0.02 -1.70

Mexico 18.30 18.20 -0.53 +13.22

Debt Index Strip Spd Chg %Rtn Index

Sov'gn Debt EMBIG 326 1 .03 7 83.65 1

All data taken from Reuters at 09:07 GMT. Currency percent change calculated from the daily U.S. close at 2130 GMT. (Reporting by Karin Strohecker; editing by Susan Thomas)