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EMERGING MARKETS-Dollar rise cancels out boost from N.Korea relief

LONDON, Aug 15 (Reuters) - A stronger dollar weighed on emerging assets on Tuesday, with stocks and currencies failing to benefit from an easing of the North Korea standoff.

Having hit a one-month low last week amid a bellicose exchange of words between U.S. President Donald Trump and North Korean leader Kim Jong Un, MSCI's benchmark emerging equity index trod water following a more than 1 percent jump on Monday.

Overall, global markets traded a touch higher following Kim's decision to delay firing missiles towards Guam while he waits to see what the United States does next. Adding to the mood were comments from South Korea's president saying Seoul would seek to prevent war by all means.

But the gains failed to boost riskier emerging market stocks as the dollar index extended gains for a second day, with higher U.S. yields giving the greenback a lift.

However, emerging dollar bond yield spreads narrowed another 2 basis points, nearly trading back at levels last seen a week ago before Trump rattled markets with his "fire and fury" threat to Pyongyang.

Shahzad Hasan, portfolio manager for emerging markets fixed income at Allianz Global Investors, said the overall backdrop for emerging markets was "positive right now":

"Risk is back on, fears of conflict with North Korea are receding, emerging market spreads are tighter."

A stronger dollar also weighed on some emerging currencies.

Mexico's peso weakened 0.2 percent against the greenback, with Turkey's lira nearly matching the fall.

Yet oil prices broadly stabilizing after Monday's tumble and copper futures snapping a four-day losing streak provided some support, with Russia's rouble strengthening 0.1 percent.

In South Africa, the rand struggled 0.1 percent higher after the high court quashed an anti-graft watchdog's proposal to change the central bank's mandate.

The watchdog's report, published in June, had called on lawmakers to amend South Africa's constitution to relax the central bank's inflation-targeting mandate.

It had rattled investors, who feared a change could undermine the bank's role in keeping the financial system stable at a time when the economy has sunk into recession, the country's credit rating has been downgraded and its politics are dominated by questions over President Jacob Zuma's stewardship.

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 1053.34 -0.31 -0.03 +22.16 Czech Rep 1032.00 +1.26 +0.12 +11.98 Poland 2376.66 +4.94 +0.21 +22.01 Hungary 36768.18 -34.84 -0.09 +14.89 Romania 8334.28 +16.97 +0.20 +17.63 Greece 827.77 +4.22 +0.51 +28.61 Russia 1021.99 -9.14 -0.89 -11.31 South Africa 48774.64 -333.91 -0.68 +11.10 Turkey 09080.33 -457.03 -0.42 +39.60 China 3251.64 +14.28 +0.44 +4.77 India 31449.03 +235.44 +0.75 +18.11 Currencies Latest Prev Local Local close currency currency

% change % change

in 2017

Czech Rep 26.15 26.12 -0.13 +3.28

Poland 4.28 4.28 +0.06 +2.89

Hungary 304.17 304.02 -0.05 +1.53

Romania 4.57 4.57 +0.02 -0.76

Serbia 119.30 119.36 +0.05 +3.39

Russia 59.90 59.91 +0.03 +2.28

Kazakhstan 333.09 332.56 -0.16 +0.17

Ukraine 25.59 25.62 +0.10 +5.51

South Africa 13.30 13.32 +0.14 +3.25

Kenya 103.60 103.70 +0.10 -1.19

Israel 3.58 3.58 -0.03 +7.47

Turkey 3.53 3.52 -0.11 -0.05

China 6.68 6.67 -0.13 +3.97

India 64.12 64.09 -0.05 +5.97

Brazil 3.19 3.19 +0.00 +2.03

Mexico 17.80 17.77 -0.18 +16.38

Debt Index Strip Spd Chg %Rtn Index

Sov'gn Debt EMBIG 324 -2 .01 7 93.56 1

All data taken from Reuters at 08:41 GMT. Currency percent change calculated from the daily U.S. close at 2130 GMT.

(Reporting by Karin Strohecker; Editing by Kevin Liffey)