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CEE MARKETS-FX, stocks rebound as Asia stocks rise and euro retreats

* Profit-taking after euro rally mostly helps CEE currencies

* Budapest leads stock rebound on MOL, upgraded by S&P

* Leu remains under pressure from politics, overheating fears

* Croatia starts marketing 2030-expiry euro bonds

BUDAPEST, Nov 16 (Reuters) - Central European currencies and equities mostly firmed on Thursday on relief that the past week's global stocks sell-off had not continued in Asia overnight, indicating less risk aversion. Regional currencies were also buoyed by profit-taking on euro buying positions built after Tuesday's upbeat economic output data boosted the euro. The crown and the zloty firmed 0.3 percent against the euro by 0929 GMT. The forint gained 0.1 percent. Equities mostly rebounded after Wednesday's plunge. Budapest's index led, rising 1.1 percent, driven by 2.5 percent rise in oil group MOL after Standard & Poor's upgraded the company's debt rating to 'BBB-' from 'BB+'.

Warsaw's bluechip index rebounded from Wednesday's three-month lows. "This strengthening is simply because the recent sell-off did not continue in Asia," one Budapest-based currency dealer said. "Also the euro had strengthened a lot, and there is a correction now. Markets are calming down... until the next U.S. economic figures." Czech central bank (CNB) Governor Jiri Rusnok was quoted on Thursday as saying that the economy was growing faster than potential. The comments underpinned expectations for further CNB rate increases, after two hikes since August. The region's main economies released robust third-quarter growth figures on Tuesday, with Czech output rising by 5 percent in annual terms. The surge overshadowed concerns over politics in some Central European countries. The European Commission on Wednesday voiced fresh concerns over Poland's plans to reform its courts. Judicial reform, which critics say threaten the independence of courts, is also a worry in Romania. Such concerns, coupled with endless corruption allegations against ruling party officials and worries the economy may be overheating after it grew by 8.8 percent in the third quarter, have weighed on the leu currency and Romanian government bonds. The leu eased a shade to 4.6336 against the euro, near record lows set after the central bank said last week that it would loosen its grip on the currency. Romanian government bonds took a pause after a surge in yields in the past week to their highest levels since 2014, with shorter maturities rising more. The leu could stay between 4.6 and 4.7 in the next weeks, Nordea analyst Natalia Kornela Setlak said in a note. "However, we do not expect a sharp depreciation of the RON, as the strong economic fundamentals should support the currency to strengthen slightly in the medium-term towards the old, well-known range 4.50-4.60 EUR/RON." The kuna traded slightly off nine-month highs against the euro. Croatia opened books on a 2030-expiry benchmark euro bond on Thursday.

CEE MARKETS SNAPSH AT 1029 CET

OT CURRENCIES

Latest Previo Daily Change

us

bid close change in

2017

Czech crown 25.560 25.632 +0.28 5.66% 0 0 % Hungary 312.00 312.36 +0.12 -1.02% forint 00 00 % Polish zloty 4.2340 4.2469 +0.30 4.01%

%

Romanian leu 4.6336 4.6318 -0.04% -2.13% Croatian 7.5610 7.5550 -0.08% -0.08%

kuna

Serbian 118.41 118.48 +0.06 4.17% 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 1060.7 1052.8 +0.75 +15.1 9 8 % 0% Budapest 39031. 38615. +1.08 +21.9 24 11 % 6% Warsaw 2430.7 2418.9 +0.49 +24.7 1 6 % 8% Bucharest 7704.3 7731.5 -0.35% +8.74 5 4 % Ljubljana 785.99 785.12 +0.11 +9.53 % % Zagreb 1848.4 1847.7 +0.04 -7.34% 1 1 % Belgrade 733.58 733.48 +0.01 +2.26 % % Sofia 668.72 669.04 -0.05% +14.0

3% BONDS

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

Republic

2-year 0.497 0.162 +124b +16bp ps s 5-year 0.956 0.144 +129b +14bp ps s 10-year 1.733 -0.008 +134b -2bps

ps Poland

2-year 1.593 -0.008 +234b -1bps

ps

5-year 2.625 0.02 +296b +2bps

ps

10-year 3.454 0.016 +307b +1bps

ps

FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M

interb ank

Czech Rep <PR 0.98 1.14 1.26 0

IBOR=>

Hungary <BU 0.08 0.09 0.12 0.03

BOR=>

Poland <WI 1.7625 1.835 1.935 1.73

BOR=>

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

(Additional reporting by Luiza Ilie in Bucharest; Editing by Catherine Evans)