By Aaron Saldanha
April 30 (Reuters) - Emerging market currencies dipped on Tuesday after soft Chinese data hit broad risk appetite towards developing world assets, while Turkey's lira dropped as comments from the central bank governor failed to whip up much investor confidence.
Manufacturing activity for April in China expanded for a second straight month but at a much slower pace, surveys showed, casting some doubt over the strength of an economic recovery underpinned by a slew of support measures. weaker numbers will keep the hope of further monetary easing alive in markets and as such the numbers may not be that negative for Chinese stocks," Allan von Mehren, chief analyst and China economist at Danske Bank, wrote in a note.
Turkey's lira TRY= fell for a seventh straight session and was trading 0.4 percent weaker after hitting a more than six month low.
Many investors had been looking for details on the central bank's use of currency swaps to bolster foreign exchange reserves and indirectly inspire confidence in the lira, which is down about 11.5 percent this year. Governor Murat Cetinkaya said while the bank knows the impact of swaps on its reserves, it does not design tools by looking at the impact on the reserves. stocks .XU100 rose 0.6 percent, as bank stocks .XBANK came off a one-month closing low clocked in the previous session.
Falling employment and weaker expansion of new business led to local manufacturing activity to slow in April, the Markit purchasing managers' index showed. SBER.MM fell 1.1 percent as it posted a lower return on equity for for the first quarter. Africa's rand ZAR= was 0.4 percent weaker, with investors cautious before local trade data due later in the day.
A Reuters poll of analysts forecast that March trade data, due at 1200 GMT, would show a 4.8 billion rand surplus.
Hungary's forint EURHUF= edged firmer against the euro. The country's central bank is set to review borrowing costs later in the day, with most investors expecting them to be left unchanged at the record low of 0.9 percent.
However, following recent strong data, any possible hints on the tightening of liquidity going ahead will be keenly watched out for.
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
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