* U.S. tariffs raised on $200 billion of Chinese goods
* China gains, yuan strengthens, Asian stocks follow
* Turkey's lira rises after additional liquidity steps
By Agamoni Ghosh
May 10 (Reuters) - Emerging-market shares and currencies gained on Friday as renewed hope for progress in trade talks between the United States and China overshadowed an increase in tariffs for Chinese goods.
U.S. President Donald Trump raised tariffs on $200 billion of Chinese goods on Friday, but talks between the two countries continued. Investors were hoping they would reach an agreement and avert the damage a trade war could do to the global economy.
"The increase in tariffs is well expected for a few days already, so when U.S. raised the tariffs the markets did not feel that extra surprise," said Iris Pang, an economist at ING.
"If someone told us that the two sides are not going to talk, that would be a surprise."
MSCI's index for emerging-market stocks .MSCIEF rose from two-month lows, led by Asian shares, but were still headed for their worst weekly performance so far this year.
Chinese shares dropped when the tariffs took effect but then recovered. The Shanghai composite index .SSEC and the blue-chip CSI300 index .CSI300 both rose more than 3%. The Hang Seng Index .HSI gained 1.6%. The yuan CNY= also strengthened.
Turkey's lira TRY= rose 1% after the central bank suspended repo auctions and took additional liquidity steps to counter the currency's recent declines, which came after a decision to re-run Istanbul's mayoral election. emerging Europe, Polish stocks .WIG20 rose more than 1% from six-month lows. Budapest's BUX .BUX gained on mixed earnings.
Currencies in the region all strengthened against the euro. Bond yields continued to drift lower. CEE/
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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