* Russia's rouble leads EMEA losses
* Hungarian c.bank expected to hold rates
* MSCI EM stocks index largely flat
By Ambar Warrick
Oct 20 (Reuters) - Emerging market currencies in Europe,
Middle East and Africa were muted on Tuesday as growing
coronavirus cases and the lead-up to the U.S. presidential
election weighed on sentiment, while the Hungarian forint was
flat ahead of a central bank meeting.
Weakness in oil markets saw Russia's rouble leading
losses in the region while the Polish zloty lagged
central European peers, as both countries saw an infection
The Hungarian forint retreated slightly against
the euro ahead of a central bank meeting, where it is expected
to hold interest rates after weaker-than-expected September
consumer prices data eased some inflation concerns.
Still, inflation levels are well above the central bank's
target, as it kept a dovish stance due to the pandemic.
"While the markets would likely view quantitative easing as
normal and acceptable at this time, it is not clear that the
market would welcome easier monetary policy as a long-term
growth driver, in a country where core inflation is running
above the inflation target," Tatha Ghose, FX & EM analyst at
Commerzbank, wrote in a note.
"The resultant weak forint exchange rate is not a problem at
this time, but it will be once the corona shock has faded."
Hungarian stocks were flat, with the MSCI's index of
emerging market equities reflecting a similar trend.
Chinese stocks lent some support to the benchmark as
optimism over strong consumption in the country invited some
buying into risk-linked assets.
Most stock indexes in EMEA tracked weakness in Wall Street
as Washington lawmakers still appeared to struggle to reach
agreement on stimulus ahead of a Tuesday deadline.
Surging coronavirus cases across Europe also weighed on
sentiment as they raised the chances of fresh curbs on social
and business activity.
Markets were now looking to central bank decisions from
Russia and Turkey later in the week.
For GRAPHIC on emerging market FX performance in 2020, see http://tmsnrt.rs/2egbfVh
For GRAPHIC on MSCI emerging index performance in 2020, see https://tmsnrt.rs/2OusNdX
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For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see
(Reporting by Ambar Warrick in Bengaluru;
Editing by Andrew Cawthorne)