Emerging Markets-Emerging market stocks dip; Fed meeting eyed
* U.S. Federal Reserve's two-day meeting starts on Tuesday
* Turkish unemployment dipped in Feb-April period
* MSCI's EM stocks index down 0.3%; lower for 4th straight day
* EM currencies make minor moves, although Turkish lira firms 0.5%
By Aaron Saldanha
June 17 (Reuters) - Emerging market stocks slipped on Monday, while most developing world currencies traded in narrow ranges against the dollar a day ahead of the start of the U.S. Federal Reserve's keenly anticipated meeting.
Developing world investors hope the Fed will continue to show patience at its two-day meeting starting on Tuesday, with some pricing in lower U.S. borrowing costs, following a bruising 2018 which saw capital drain away from emerging markets as the Fed boosted returns on holding dollars. FRX/
Hints of possible upcoming rate cuts "would be like oxygen for emerging market sentiment in 2019," Vladimir Miklashevsky, senior economist and trading desk strategist at Danske Bank, wrote in a note.
Miklashevsky added he expects the Fed to deliver an overall dovish message at the meeting, leading to a rate cut in July.
MSCI's developing world stocks index .MSCIEF dropped 0.3%, declining for a fourth straight day. South Korean stocks .KS11 fell 0.2%, although their peers in China .SSEC gained as much in the other direction on hopes of further stimulus. .SS
Hong Kong-traded stocks .HSI rose 0.5%, gaining for the first time in four sessions. The index was marred by political uncertainty last week due to protests against an extradition bill which was later postponed indefinitely. emerging market currencies index .MIEM00000CUS dipped 0.1%. China's yuan CNY= remained broadly stable, aided by a firmer-than-expected mid-point rate set by the People's Bank of China CNY=PBOC . CNY/
Turkey's lira TRY= firmed 0.5%, while stocks on the bourse in Istanbul .XU100 edged higher as the country's lenders .XBANK tacked on 1%. Garanti Bankasi GARAN.IS rose 2%.
Data on Monday showed Turkey's unemployment rate eased to 14.1% in the February-April period, declining from its highest level in nearly a decade. data comes after ratings agency Moody's cut Turkey's sovereign credit rating deeper into "junk" territory on Friday, saying the risk of a balance of payments crisis continued to rise, and with it the risk of a government default. Turkish finance ministry questioned the impartiality of Moody's decision, saying the downgrade was not in accordance with the country's economic indicators.
Russia's rouble RUB= edged 0.1% firmer, a gain matched by Moscow-traded stocks .IMOEX .
In emerging Europe, Poland's zloty EURPLN= marked time against the euro, while Hungary's forint EURHUF= was 0.1% firmer against the common currency.
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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