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CEE MARKETS-Markets drop on N. Korea, Czech cbanker's comments buoy crown

* Czech cbank vice-governor may vote for hike in Sept

* Poland, Hungary lead currency, stock retreat

* Hungarian central bank dovish

* PMI data could fuel optimism

(Recasts with comments from Czech central banker and EU criticism of Poland) BUDAPEST/WARSAW, Aug 29 (Reuters) - Central European stocks and currencies mostly fell on Tuesday, led by Warsaw and Budapest on widespread risk aversion after a missile test by North Korea revived concerns over its tense relations with the United States. The Czech crown outperformed, erasing its losses to trade flat after central bank (CNB) Vice-Governor Mojmir Hampl said it might lift interest rates again. Regional assets have been buoyed this month by data showing robust economic growth. Budapest's main stock index fell 1.4 percent by 1443 GMT on Tuesday, having hit record highs the previous day. Warsaw's bluechip index eased 1.3 percent, off 28-month highs, and Prague shed 1.4 percent. The zloty weakened half a percent against the euro and the forint fell 0.4 percent. Market participants said PMI manufacturing activity data due in the region's main countries on Friday could help its assets again. The forint is under additional pressure after the Hungarian central bank flagged further monetary easing on Thursday in comments to Reuters. This is in contrast with the CNB's stance, which early this month implemented the European Union's first rate hike in more than five years. Hampl told Reuters that he might vote for a new rate hike already at the bank's Sept 27 board meeting, partly due to concerns over a heated mortgage lending market, though continued crown strength might reduce the need for an increase. After his comments, the crown bounced back from two-week lows against the euro and traded steady at 26.11. Polish rate-setter Kamil Zubelewski said Poland should nudge interest rates up now to avoid spikes in inflation, but he is in a minority on the Monetary Policy Council.

CEE MARKETS SNAPSH AT 1643 CET

OT CURRENCIES

Latest Previo Daily Change

us

bid close change in

2017

Czech crown 26.110 26.101 -0.03% 3.44% 0 0 Hungary 305.49 304.29 -0.39% 1.09% forint 00 00 Polish zloty 4.2680 4.2468 -0.50% 3.18% Romanian leu 4.5960 4.5980 +0.04 -1.33%

%

Croatian 7.4150 7.4143 -0.01% 1.89%

kuna

Serbian 119.07 119.10 +0.03 3.59% dinar 00 00 % Note: daily calculated previo close 1800 change from us at CET

STOCKS

Latest Previo Daily Change

us

close change in

2017

Prague 1021.3 1035.9 -1.41% +10.8 0 1 2% Budapest 37551. 38097. -1.43% +17.3 29 59 4% Warsaw 2497.7 2531.3 -1.33% +28.2 3 1 3% Bucharest 8290.9 8363.1 -0.86% +17.0 9 4 2% Ljubljana 819.61 824.53 -0.60% +14.2

2%

Zagreb 1895.6 1899.5 -0.20% -4.97% 9 0 Belgrade 728.49 724.75 +0.52 +1.55 % % Sofia 711.13 713.94 -0.39% +21.2

6% BONDS

Yield Yield Spread Daily (bid) change vs change Bund in Czech spread

Republic

2-year -0.027 -0.011 +071b -2bps

ps

5-year 0.043 0.024 +040b +5bps

ps

10-year 0.905 0.021 +057b +6bps

ps Poland

2-year 1.678 -0.044 +242b -6bps

ps

5-year 2.592 -0.03 +295b -1bps

ps

10-year 3.272 -0.006 +293b +3bps

ps

FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M

interb ank

Czech Rep <PR 0.6 0.69 0.79 0

IBOR=>

Hungary <BU 0.19 0.23 0.285 0.15

BOR=>

Poland <WI 1.78 1.79 1.835 1.73

BOR=>

Note: FRA are for ask quotes prices ******************************************************** *****

(Additional reporting by Luiza Ilie in Bucharest/Bartosz Chmielewski in Warsaw; Editing by Richard Balmforth and John Stonestreet)