* WHO reports record daily rise in COVID-19 cases
* S.African weakens, emergency budget awaited
* Turkish stocks jump with Halkbank leading gains
By Shreyashi Sanyal
June 22 (Reuters) - Emerging market stocks started the week on softer footing on Monday after the World Health Organization reported a record global increase in COVID-19 cases, while South Africa's rand weakened ahead of a local emergency budget later this week.
Fears of a second wave of coronavirus infections pushed the MSCI's index of emerging market stocks .MSCIEF 0.1% lower. The index had risen 1.5% in the previous week.
Most eastern and central European indexes led declines, with Romanian stocks .BETI falling 1% as Germany's coronavirus reproduction rate jumped to 2.88, a rate showing infections are rising above the level needed to contain the disease over the longer term. U.S. cases on Saturday hit the highest since early May, while the WHO reported on Sunday total cases rose by 183,020 in a 24-hour period. Fears of a second wave has also spurred safe-haven demand for gold on Monday. GOL/ MKTS/GLOB
The South African ZAR= rand edged lower against the dollar ahead of the country's revised budget later this week, which comes almost three months after government announced a 500 billion rand ($28.78 billion) stimulus package leaning heavily on new borrowing.
The Russian rouble RUB= firmed marginally as relatively strong oil prices supported the currency, while stocks .IMOEX fell 0.7%. Russia's central bank slashed interest rates to the lowest level since the collapse of the Soviet Union on Friday.
"The FX market has a similar lean today as the one exhibited last week where traders stayed for the most part in a cautionary 'wait and see mode' as the virus case counts sprung higher stateside," said Stephen Innes, chief global market strategist at AxiCorp.
Investors have been optimistic of a post-coronavirus economic recovery fuelled by actions taken by major central banks. But emerging market stocks have stuck to a holding pattern for nearly two months now after rallying sharply in April from March-lows.
Turkish stocks .XU100 jumped 1.4%, with financials leading the charge as state lender Halkbank HALKB.IS surged 7% after U.S. federal chief prosecutor Geoffrey Berman, who oversaw a court case against the bank, stepped down over the weekend. Turkish lira TRY= dipped. Data showed Turkey's consumer confidence index edged up in June from the previous month, still remaining deep in pessimistic territory. 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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