* Reports say Evergrande missed coupon payments
* Chinese stocks rise after reserve rate cute
* South African third quarter GDP awaited
* Biden-Putin talks in focus
Dec 7 (Reuters) - Most emerging market stocks and currencies
rose on Tuesday, tracking gains in broader markets with concerns
over the Omicron variant receding but potential debt defaults in
China's property market still in focus.
MSCI's index of emerging market stocks jumped
1.5%, supported by gains in Chinese stocks after the central
bank cut cash reserve requirements for banks, freeing billions
in long-term liquidity to bolster slowing economic growth.
China's blue-chip index ended about 0.6% higher.
"China has been wary in previous months of unleashing
stimulus, as it has dealt with the risks of higher inflation and
disrupted supply chains ... In recent weeks these pressures have
begun to ease," said Alex Kuptsikevich, senior financial analyst
Debt-saddled property developer China Evergrande,
was also in focus amid reports that some offshore bondholders of
the firm did not receive coupon payments by the end of a 30-day
grace period on Monday.
A failure to make interest payments could put Evergrande at
risk of becoming China's biggest-ever defaulter. Investors are
now watching whether the firm will head into debt restructuring.
"The worst-case scenario for the current situation is a
sector-wide domino effect. A default by one or more developers
would block other players' capital markets, triggering a spiral
of rising bond market yields. In that case, investors would
demand a higher risk premium for emerging market securities,"
Emerging markets benefited from improving risk sentiment,
amid hopes the Omicron variant would be shown to cause only mild
South Africa's rand gained 0.1% ahead of
third-quarter gross domestic product (GDP) data that is expected
to show the economy contracted 1.2% quarter on quarter following
civil unrest over the arrest of former President Jacob Zuma in
Statistics South Africa is expected to release its third
quarter GDP numbers at around 0930 GMT, with a Reuters poll
forecasting a 3.5% year-on-year growth, much lower than the
19.3% growth recorded in the same period last year.
Russian stocks led gains in Europe, the Middle East
and Africa with a 1.1% rise, tracking oil price rises.
Russia's rouble fell 0.2% ahead of a video call
between Russian President Vladimir Putin and his U.S.
counterpart Joe Biden later in the day, with the threat of new
sanctions against Moscow lingering over the talks.
Turkey's lira was the best performing emerging
markets currency, jumping 1% as it recovered from near record
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 Ambar Warrick; Editing by Edmund Blair)