* MSCI EM stocks index set for best monthly performance since Jan.
* Shanghai Composite stocks drop 0.6%, local blue-chips fall 0.2%
* Russian rouble treads water, stocks rise
* Trump-Xi meeting at G-20 summit eyed
By Aaron Saldanha
June 28 (Reuters) - Emerging-market stocks remained on course on Friday for their best monthly performance since January, although risk appetite was kept in check by doubts the United States and China would make progress in resolving their trade war.
Developing-world currencies rose against the dollar, with China's yuan CNY= gaining ground.
U.S. President Donald Trump said he had not promised Chinese President Xi Jinping a six-month reprieve from tariffs, fuelling doubts among investors that much would be achieved at their meeting during the G-20 summit in Osaka, Japan, this weekend. developing-world stocks index .MSCIEF gained, although it was held back by Chinese shares. The Shanghai Composite index .SSEC fell 0.6% and the blue-chip CSI300 index .CSI300 dipped 0.2%. .SS
The MSCI index looks set to rise 5.7% in June, its best monthly showing since it gained 8.7% in January.
"There is no correct amount of caution going into the Xi-Trump meeting at the Osaka G20 Summit on June 29," DBS Chief Economist Taimur Baig and Economist Radhika Rao wrote in a note. "For the Chinese yuan, the Xi-Trump meeting is a binary event."
The yuan rose 0.1%, while MSCI's emerging-market currencies index .MIEM00000CUS gained 0.3%.
Turkey's lira TRY= was up 0.2% and Turkish stocks .XU100 rose 0.3%. Data showed a smaller Turkish trade deficit for May, year-on-year, at about $1.84 billion. day earlier, prices of Turkey's dollar-denominated bonds had risen after inflows into local assets surged to their highest level since early February. rouble RUB= was little changed. Moscow-traded stocks .IMOEX advanced 0.2%, aided by a 0.7% rise in Gazprom's stock GAZP.MM .
Russia's biggest bank, Sberbank SBER.MM , fell 0.3% but was on course for a fourth straight monthly gain, up 2.5% in June.
"Sberbank is an excellent bank - it has also become fortress-like, but problem is it's in Russia, so you've got both oil and political risk and the economy has not been doing so well," Kokkie Kooyman, director and portfolio manager, global financials, at Denker Capital told the Reuters Global Markets Forum on Thursday.
Emerging European currencies traded in narrow ranges against the euro, with Poland's zloty EURPLN= up and Hungary's forint EURHUF= little changed.
Performance during June 2019 of select EM stock indexes
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