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EMERGING MARKETS-Emerging stocks set for longest monthly run of gains since 2003

2003@

LONDON, Aug 31 (Reuters) - A modest dollar bounce took some of the steam out of emerging markets on Thursday, with equities edging further off recent three-year highs though they were set to end August with an eighth straight month of gains.

Russian assets, however, rose as investors cheered a central bank bailout of top private lender Otkritie.

In currencies, the dollar's recovery on the back of upbeat U.S. economic data hurt Turkey's lira, South Africa's rand and China's yuan.

The losses in the yuan, which drew it away from a 14-month high, came despite growth in China's manufacturing sector unexpectedly accelerating in August.

MSCI's global emerging market share index slipped 0.2 percent but was up 1.8 percent for August and on course for its longest run of monthly gains since 2003.

Appetite for emerging markets has been stoked ultra-low interest rates in developed markets and an improving economic growth. The sector has for the most part, shrugged off geopolitical tensions stoked by nuclear-armed North Korea.

Russian equities rose 0.8 percent and headed for the strongest month since December, partly due by a rally in Russian banks on relief that the central bank stepped in to bail out private lender Otkritie.

Otkritie's shares fell 5 percent on Thursday, adding to steep losses a day earlier.

"Otkritie is a systemically relevant bank, and having troubles there could have damaging contagion effects on other Russian banks," said Sergey Dergachev, senior portfolio manager at Union Investments.

But he added: "The quick reaction by the Russian central bank and de-facto saving senior creditors and depositors was strong and correct."

Russian stocks have bucked this year's bullish emerging market trend, falling around 10 percent as oil prices have weakened and as a hoped-for warming of ties between the Kremlin and U.S. President Donald Trump did not materialise.

In frontier markets, Tajikistan started investor meetings ahead of a planned Eurobond. The central Asian country is targeting a 10-year debut issue.

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 1086.45 -1.55 -0.14 +26.00 Czech Rep 1028.46 -0.41 -0.04 +11.59 Poland 2524.39 -0.18 -0.01 +29.59 Hungary 37876.33 -27.55 -0.07 +18.35 Romania 8076.36 -150.24 -1.83 +13.99 Greece 819.92 -3.73 -0.45 +27.39 Russia 1090.41 +6.00 +0.55 -5.37 South Africa 49874.43 +199.51 +0.40 +13.60 Turkey 10275.48 -147.63 -0.13 +41.13 China 3361.00 -2.63 -0.08 +8.29 India 31699.73 +53.27 +0.17 +19.05 Currencies Latest Prev Local Local close currency currency

% change % change

in 2017

Czech Rep 26.12 26.05 -0.27 +3.38

Poland 4.26 4.25 -0.16 +3.41

Hungary 306.10 305.70 -0.13 +0.89

Romania 4.59 4.59 +0.03 -1.17

Serbia 119.02 119.02 +0.00 +3.64

Russia 58.46 58.52 +0.11 +4.80

Kazakhstan 338.04 335.32 -0.80 -1.30

Ukraine 25.68 25.58 -0.39 +5.14

South Africa 13.02 12.99 -0.23 +5.46

Kenya 102.95 103.10 +0.15 -0.56

Israel 3.59 3.59 +0.12 +7.39

Turkey 3.46 3.45 -0.41 +1.84

China 6.60 6.59 -0.06 +5.27

India 63.94 63.99 +0.07 +6.26

Brazil 3.16 3.16 -0.02 +2.94

Mexico 17.77 17.71 -0.35 +16.55

Debt Index Strip Spd Chg %Rtn Index

Sov'gn Debt EMBIG 319 -2 .07 8 02.31 1

All data taken from Reuters at 09:37 GMT. Currency percent change calculated from the daily U.S. close at 2130 GMT.

(Reporting by Alexander Winning and Sujata Rao, editing by Pritha Sarkar)