* EM shares up 1% after sliding 6.3% on Monday
* Stimulus hopes lift sentiment
* Russian stocks tumble as they reopen after long holiday
* Rouble recovers on the interbank market as oil recovers
By Susan Mathew
March 10 (Reuters) - Emerging market shares rebounded on Tuesday, attempting to make up lost ground after posting their worst day in 8-1/2 years, buoyed by hopes of more stimulus as the rapidly spreading coronavirus raised fears of a global recession.
All major Asian bourses traded in the black, while those in Turkey .XU100 , South Africa .JTOPI , Hungary .BUX and Poland .WIG20 rose between 0.8% and 2.6% to help MSCI's index of developing world shares .MSCIEF increase 1%.
The index had closed down 6.3% on Monday when an oil shock sparked by a price war between Saudi Arabia and Russia whacked markets already reeling under pressure from worries about the health crisis.
"Overnight news that (U.S. President Donald) Trump could be introducing policy support has helped with some stabilization in EM equities as well as the credit space," said Wei Liang Chang, macro strategist at DBS Bank.
Trump on Monday vowed to take "major" steps to protect the economy, including discussing a payroll tax cut with congressional Republicans. in the near term there is still some downside to come as the virus continues to spread, especially if there isn't a clear coordination between policy makers globally, Chang said.
Having delivered an emergency rate cut only last week, investors are fully pricing an easing of at least 75 basis points at the next Fed meeting on March 18, while a cut to near zero is now seen as likely by April. are also on European Central Bank which meets this week, as well as EM central banks such as Russia and Mexico. MKTS/GLOB
Returning from an extended holiday, Russia stocks .IMOEX sank as much as 10.4% and were on track for their worst day in six years as they caught up with the sell-off last session. Energy firms Lukoil LKOH.MM Rosneft ROSN.MM and Gazprom GAZP.MM lost between 9% and 15%.
On the local exchange, the rouble fell to its weakest level since early 2016 compared with Friday's close, down 5% at 71.91 against the dollar RUBUTSTN=MCX and 81.9 against the euro EURRUBTN=MCX . the interbank market, however, the oil exporting country's currency RUB= EURRUB= , which was Monday's worst casualty among emerging market peers, rose about 5% on Tuesday as oil prices recovered, making up about half of last session's losses. central banks started selling foreign currency on the market on Tuesday for the first time in five years to reduce market volatility. emerging market currencies also firmed alongside the dollar - an unusual trend depicting the calm in markets. FRX/
Turkey's lira TRY= rose 1.2%. The currency was among the least hit on Monday along with other net crude importers like the Indian rupee INR= which benefit from a slide in oil prices. on Tuesday showed Turkey's unemployment rate rose to 13.7% in the November-January period from 13.3% a month earlier. GRAPHIC on emerging market FX performance 2020, see http://tmsnrt.rs/2egbfVh For GRAPHIC on MSCI emerging index performance 2020, see https://tmsnrt.rs/2OusNdX
For TOP NEWS across emerging markets CENTRAL EUROPE market report, see CEE/
For TURKISH market report, see .IS
For RUSSIAN market report, see RU/RUB