EMERGING MARKETS-Stocks bumper first half, yuan extends best quarter since 2008

Emerging market investors took some profit following the best start to a year for stocks since 2014 on Friday, though there was little sign of fatigue in China as the yuan extended its best quarter since 2008.

MSCI's closely tracked emerging economy share index was down 0.6 percent on day and looked set for a modest weekly drop - a low key finish to an otherwise stellar six months that has seen it make a 17.5 percent gain.

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China's yuan extended gains for a fourth straight session as it headed for its best quarter since June 2008 and its best week since July 2005, helped, like most of the top performing emerging market assets this year, by a dollar that has had its worst run in 7 years.

Mexico's peso strengthened 14.5 percent since the start of the year. Improving growth in Poland has made the zloty the second best global performer with a 12.6 percent gain.

http://tmsnrt.rs/2hniYya

"It has generally been a good story this year so far," said TD Securities emerging market strategist Paul Fage.

"Improving global growth is one of the key factors here, that is always good for emerging markets... and dollar weakness also helps EM currencies by definition."

South Africa's rand was the day's other main mover as it slipped 0.6 percent with some market players pointing to comments from finance minister Malusi Gigaba that the country needs "drastic measures" to escape slow growth as the cause.

The rand has strengthened some 5 percent since the start of the year, though political uncertainty and concerns over the central bank independence in recent weeks have curtailed gains.

While the dollar - on course for its worst quarter in seven years - supported recent gains across emerging currencies, policy shifts from major central banks going forward could well weigh on currencies, said TD Securities' Fage.

European Central Bank President Mario Draghi, opening the door to tweaks in the bank's aggressive stimulus policy on Tuesday, sent tremors through markets.

"I think in the short term emerging market currencies will respond negative to tighter policy from the ECB or the Fed but in six months time whether they have gone up or down will depend on their growth performance," he said.

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 1009.80 -4.22 -0.42 +17.11

Czech Rep 979.45 +3.62 +0.37 +6.28

Poland 2319.34 -9.92 -0.43 +19.07

Hungary 35244.18 +113.91 +0.32 +10.13

Romania 7862.43 +6.77 +0.09 +10.97

Greece 823.13 +3.41 +0.42 +27.89

Russia 1004.95 +4.50 +0.45 -12.79

South Africa 45359.18 +147.44 +0.33 +3.32

Turkey 00183.90 -6.42 -0.01 +28.21

China 3191.06 +3.00 +0.09 +2.82

India 30875.84 +18.32 +0.06 +15.96

Currencies Latest Prev Local Local

close currency currency

% change % change

in 2017

Czech Rep 26.21 26.20 -0.06 +3.03

Poland 4.23 4.24 +0.31 +4.21

Hungary 309.00 309.55 +0.18 -0.06

Romania 4.55 4.57 +0.28 -0.43

Serbia 120.52 120.64 +0.10 +2.35

Russia 59.37 59.40 +0.04 +3.19

Kazakhstan 323.13 321.78 -0.42 +3.26

Ukraine 26.02 26.07 +0.19 +3.77

South Africa 13.10 13.01 -0.67 +4.84

Kenya 103.75 103.60 -0.14 -1.33

Israel 3.50 3.48 -0.29 +10.17

Turkey 3.52 3.52 +0.08 +0.14

China 6.78 6.78 +0.07 +2.41

India 64.68 64.66 -0.04 +5.05

Brazil 3.30 3.30 -0.02 -1.54

Mexico 18.06 18.04 -0.12 +14.69

Debt Index Strip Spd Chg %Rtn Index

Sov'gn Debt EMBIG 329 2 .02 7 85.56 1

All data taken from Reuters at 09:16 GMT. Currency percent change calculated from the daily U.S. close at 2130 GMT.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)