* South African, Turkish central bank meetings due this week
* Polish rates more likely to rise than remain flat -
* Garanti BBVA soars after Spain's BBVA offers to buy stake
Nov 15 (Reuters) - Most emerging market currencies gained on
Monday, led by South Africa's rand and Russia's rouble, after
the dollar slipped from its 16-month peaks as investors awaited
fresh clues on U.S. monetary policy.
The rouble firmed by 1.2%, and was set to enjoy its
best day in over three weeks despite weakening oil prices. The
currency had fallen steeply on Friday amid tensions between
Russia and Ukraine that also hurt Russian bonds and stocks.
South Africa's rand firmed around 1%, ahead of
domestic inflation data and a monetary policy meeting of the
South African Reserve Bank's (SARB) due on Thursday.
The SARB is expected to hold its repo rate at 3.50%.
The dollar eased back from near an almost
16-month high versus major peers, as traders await fresh clues
on the U.S. economy after soaring inflation numbers led
investors to pull forward their Federal Reserve rate hike bets.
Turkey's lira extended losses to a fifth straight
session having breached the psychological level of 10 per dollar
on Friday. It hit its lowest of 10.04 in early trade on Monday.
The Turkish central bank is expected at its next policy
meeting on Thursday to cut rates by a further 100 basis points
despite soaring inflation, a move that would further pressure
"Turkey is hit by a perfect storm of Fed tightening, a
stronger dollar and higher oil prices. We have been very bearish
on the lira as we see no policies in place to tackle the
economic pressures and, with them also cutting rates again, it
is an economic suicide," said Jakob Christensen, head of EM
research at Danske Bank.
Turkey's benchmark stock index surged 3.2% to
record highs, led by gains in lender Garanti BBVA,
which jumped 10% after Spanish lender BBVA's 2.25
billion euros ($2.58 billion) offer for a 50.15% stake it does
MSCI's index of EM stocks rose 0.3%, in a sixth
straight session of gains - its longest winning streak since
early June. Sentiment from upbeat industrial output and retail
sales for China were offset by the embattled property sector.
Mainland China shares lost but this was outweighed by strong
tech gains in Taiwan and South Korea.
South African drinks maker Distell Group Holdings
dropped over 7% after Heineken's 40.1 billion rand
($2.62 billion) offer represented a discount to Distell's last
Poland's Central Bank Governor Adam Glapinski said in an
interview that rates there were likely to be hiked, prompting a
0.6% jump in the zloty against the euro. It had
previously plumbed seven-month lows amid a migrant crisis on its
border with Belarus that has increased regional tensions.
Argentine markets were also in focus after the ruling
Peronists suffered a setback in mid-term elections over the
weekend. Telecom Argentina's Frankfurt listing slid
For GRAPHIC on emerging market FX performance in 2021, see http://tmsnrt.rs/2egbfVh
For GRAPHIC on MSCI emerging index performance in 2021, see https://tmsnrt.rs/2OusNdX
For TOP NEWS across emerging markets
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see
(Reporting by Shashank Nayar and Susan Mathew in Bengaluru
Editing by Gareth Jones)