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CEE MARKETS-Stocks, currencies rebound; Czech central bank talks up crown

* Stocks, currencies mostly rise as nerves over N. Korea ease

* Hawkish CNB comments help lift crown to 2-week high vs euro

* Forint bucks the rise on recent dovish central bank comments

* Hungary's record-low jobless rate underpins robust GDP outlook

BUDAPEST, Aug 30 (Reuters) - Central European stocks and currencies rebounded on Wednesday, tracking core European markets as caution eased somewhat in the wake of North Korea's latest missile test, and also helped by hawkish Czech central bank comments. Economic optimism in the Czech Republic has boosted mortgage lending to levels which are already worrying the central bank (CNB), which early this month became the first in the EU to raise interest rates since 2012. One of its rate setters, Marek Mora, was quoted as saying on Wednesday that the bank may have room to lift interest rates further this year. CNB Vice-Governor Mojmir Hampl said on Tuesday that he might vote for another rate hike at the bank's Sept. 27 board meeting.

The Czech crown firmed to a two-week high, gaining 0.2 percent against the euro, to 26.05. Regional stocks and currencies generally rose as a bout of risk aversion in global markets waned in the wake of North Korea's missile test. News about the test weakened stocks and lifted government bonds globally in the previous session and caused some weakness in the region's currencies. All those movements were reversed on Wednesday. "Seesawing. No news," one Budapest-based trader said, adding that government bond yields rose by 4-5 basis points without any significant selling. Prague led stock gains, with its main index rising 0.8 percent by 0844 GMT. Budapest and Warsaw gained 0.6 percent. While the zloty firmed 0.1 percent to 4.262 against the euro, the forint bucked the trend and touched six-week lows. It is still under pressure from last week's dovish comments from the Hungarian central bank (NBH), which market participants interpreted as verbal intervention to stem a strengthening. Regional assets have recently been buoyed by economic data showing robust growth, partly supported by recovery in the euro zone and no signals from the European Central Bank about ending its stimulus policies. The Hungarian central bank even flagged further monetary easing through its unconventional tools last week, knocking down the forint from 28-month highs at 301.72 versus the euro. It traded at 306.02 at 0844 GMT, down 0.1 percent from Tuesday's close. It eased even though fresh figures showed a fall in Hungary's unemployment rate to a record low 4.2 percent in the May-July period, which confirmed that the labor market remains tight, fueling robust wage rises and consumption. Consumption has been a key component of growth in the European Union's eastern members which have been driven to lift wages after millions of workers moved to richer Western countries. The stocks of LPP rose 0.8 percent after the Polish clothing retail company reported a jump in second-quarter sales and net profits.

CEE MARKETS SNAPSH AT 1044 CET

OT CURRENCIES

Latest Previo Daily Change

us

bid close change in

2017

Czech crown 26.050 26.100 +0.19 3.67% 0 0 % Hungary 306.02 305.82 -0.07% 0.91% forint 00 00 Polish zloty 4.2620 4.2670 +0.12 3.33%

%

Romanian leu 4.5920 4.5955 +0.08 -1.24%

%

Croatian 7.4100 7.4130 +0.04 1.96% kuna % Serbian 118.99 119.19 +0.17 3.66% 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 1029.4 1021.3 +0.80 +11.7 2 0 % 0% Budapest 37872. 37639. +0.62 +18.3 62 62 % 4% Warsaw 2512.8 2497.5 +0.61 +29.0 3 8 % 0% Bucharest 8333.9 8307.5 +0.32 +17.6 3 3 % 3% Ljubljana 822.84 819.61 +0.39 +14.6 % 7% Zagreb 1897.8 1895.6 +0.12 -4.86% 9 9 % Belgrade 727.32 728.49 -0.16% +1.39

%

Sofia 706.43 711.13 -0.66% +20.4

6% BONDS

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

Republic

2-year -0.053 -0.027 +070b -2bps

ps

5-year 0.046 0.036 +039b +3bps

ps

10-year 0.916 0.012 +056b -1bps

ps Poland

2-year 1.676 -0.003 +243b +0bps

ps

5-year 2.602 0.006 +295b +0bps

ps

10-year 3.29 0.024 +294b +1bps

ps

FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M

interb ank

Czech Rep <PR 0.6 0.7 0.8 0

IBOR=>

Hungary <BU 0.2 0.24 0.28 0.15

BOR=>

Poland <WI 1.785 1.779 1.82 1.73

BOR=>

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

(Reporting by Sandor Peto; Editing by Hugh Lawson)