JOHANNESBURG, Sept 13 (Reuters) - South Africa's rand firmedagainst the dollar on Friday, as signs of a thaw in U.S.-Chinatrade tensions and monetary easing in the euro zone and Turkeybuoyed developing world currencies.
Stocks also rose, led by the banking sector.
At 1530 GMT, the rand was 0.55% firmer at 14.5200per dollar.
"The local unit seems to be starstruck by global markets asall elements move in favour of the rand. The past two weeks haveseen markets turn from skittish and risk averse, to an emergingmarket dream," Bianca Botes, treasury partner at PeregrineTreasury Solutions, said in a note.
China resumed purchases of U.S. farm products, a move seenas a goodwill gesture before trade talks next month. U.S.President Donald Trump said on Thursday he did not rule out thepossibility of an interim pact, although he said an "easy"agreement would not be possible.
Risk appetite was also boosted after the European CentralBank on Thursday pledged indefinite stimulus to revive an ailingeuro zone economy, setting the stage for a 25 basis pointreduction in key borrowing costs from the U.S. Federal Reservenext week.
On the bourse, stocks gained with the broader All-shareindex up 0.6% to 57,124 points, while the benchmarkTop-40 index rose 0.74% to 51,146 points.
The banking index was up 1.89%, with Investecrising 4.61% to 89.62 rand, while Absaincreased 3.05% to 167 rand, and Capitec rose 2.25% to1,274.00 rand.
Nick Kunze, portfolio manager at Sanlam Private Wealth, saidthe stronger rand had lifted financial stocks.
South Africa's second biggest insurer, Old Mutual,gained 1.67% to 20.08 rand after it said it wasn't backing downin a dispute with its fired CEO Peter Moyo.
Bonds weakened, with the yield on the benchmark instrumentdue in 2026 adding 4 basis points to 8.14%.(Reporting by Nqobile Dludla, Olivia Kumwenda-Mtambo and OnkeNgcuka; Editing by Alex Richardson)