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EMERGING MARKETS-Turkish stocks rally, forint strong

LONDON, Oct 12 (Reuters) - Turkish stocks extended gains on Friday as investors welcomed strong balance of payments data and the government's tough stance on Syria, while the forint rose after Hungary's leader talked up prospects of an IMF deal.

The Istanbul share market gained 0.5 percent

,

hitting its highest since May 2011 as it built on Thursday's gains which followed data showing the current account deficit fell in August to its lowest level since 2009, boosting hopes of a sovereign credit rating upgrade.

Turkish assets have also benefited from the perception the government is protecting the country from the impact of the civil war in neighbouring Syria.

"Turkey is seeing more flows into equities, with the index now close to post-2000 highs, a reflection of yesterday's current account data and a vote of confidence in the government's tough stance on Syria," Simon Quijano-Evans, emerging markets strategist at ING, said in a note.

Prime Minister Tayyip Erdogan said on Thursday a Syrian passenger plane forced to land in Ankara was carrying Russian-made munitions destined for Syria's armed forces.

The forint rose 0.3 percent, hitting a one-month high against the euro

, after Prime Minister Viktor Orban said that Hungary is close to an agreement with the International Monetary Fund on setting up a financial safety net.

Elsewhere in currency markets, South Africa's rand rose 0.68 percent, hitting a one-week high

after freight employers said they had reached a wage deal to end a three-week strike by truck drivers and manufacturing data for August beat expectations.

Serbia's dinar hit its highest against the euro

since May, benefiting from a central bank interest rate hike to 10.75 percent earlier in the week to rein in double-digit inflation.

Chinese stocks

hit a one-month high ahead of a tranche of fresh China data over the weekend, with strength in the banking sector outweighing weakness in resource-related sectors.

Broader emerging stocks edged up 0.2 percent ahead of U.S. inflation and sentiment data.

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For GRAPHIC on MSCI emerging index performance 2012, see

For GRAPHIC on MSCI emerging Europe performance 2012, see

For GRAPHIC on MSCI frontier index performance 2012, see

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see

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(Reporting by Shadia Nasralla and Carolyn Cohn; Editing by John Stonestreet)

((Shadia.Nasralla@thomsonreuters.com)(+44)(0)(20 7542 5213)(Reuters Messaging: shadia.nasralla.thomsonreuters@reuters.net))

((Emerging Markets Prices from Reuters

Equities Latest Net Chg % Chg % Chg on year Morgan Stanley Emrg Mkt Indx

997.77 +1.82 +0.18 +8.88

Poland

2379.11 -15.10 -0.63 +10.94

Hungary

19121.69 -27.38 -0.14 +12.65

Romania

4814.38 +32.38 +0.68 +11.01

Russia

1484.39 -6.02 -0.40 +3.50

South Africa

32214.89 -137.21 -0.42 +13.15 Turkey 69602.92 +25.32 +0.04 +35.77 China 2104.93 +2.06 +0.10 -4.30 India 18714.65 -90.10 -0.48 +21.09 Currencies Latest Prev Local Local close currency currency % change % change in 2012 Czech Rep 24.90 24.90 +0.02 +2.60 Poland 4.09 4.09 +0.09 +9.16 Hungary 280.89 281.45 +0.20 +12.00 Romania 4.56 4.56 +0.07 -5.27 Serbia 112.57 113.50 +0.83 -4.99 Russia 30.98 31.03 +0.14 +3.91

Kazakhstan

150.52 150.43 -0.06 -1.37 Ukraine 8.13 8.13 +0.00 -1.71

South Africa

8.60 8.66 +0.61 -6.26 Kenya 85.15 85.25 +0.12 -0.23 Israel 3.84 3.85 +0.37 -0.69 Turkey 1.80 1.81 +0.08 +4.43 China 6.27 6.28 +0.17 +0.45 India 52.69 52.65 -0.08 +0.61 Brazil 2.04 2.04 -0.02 -8.78 Mexico 12.88 12.91 +0.27 +8.31 Debt Index Strip Spd Chg %Rtn Index Sov'gn Debt EMBI+ 269 -3 0.04 694.92

Currency percent change calculated from the daily U.S.

close at 2130 GMT.)) Keywords: MARKETS EMERGING