COVID concerns weigh on China stocks; CEE currencies rise

* China stocks fall as Beijing COVID concerns weigh

* Zloty up as Polish retail sales rise 33.4% y/y in April

* Lira slips as Turkish May manufacturing confidence falls

* Rouble firms 3%, heads back towards multi-year highs vs dollar

By Bansari Mayur Kamdar

May 23 (Reuters) - Emerging market stocks ticked lower on Monday after Chinese shares fell as the country's ongoing COVID-19 situation outweighed the boost from U.S. President Joe Biden indicating there may be a tariff cut on Chinese goods.

Emerging market stocks .MSCIEF fell 0.2%. Stocks in China .CSI300 and Hong Kong .HSI fell 0.6% and 1.2%, respectively, as Beijing reported the highest number of COVID-19 cases seen during the current outbreak, while profit-taking after two consecutive weeks of gains also weighed on the indexes.

Currencies .MIEM00000CUS in the region inched 0.1% up. U.S. President Joe Biden said he was weighing cutting tariffs on Chinese goods, which helped lift the Chinese yuan CNY=CFXS to its highest since May 5.

Central European currencies firmed, lifted by a weaker dollar and a positive mood in global markets.

Retail sales in Poland rose 33.4% year-over-year in April, compared with the estimated 30.6%, boosting the Polish zloty EURPLN= 0.5% up against the euro.

"We are seeing further tentative signs of improvement in market sentiment," said Piotr Matys, senior FX analyst at In Touch Capital Markets.

"Another set of very strong Polish data, which is an indication that households continue to spend money despite high inflation as disposable income of Polish households is being protected by still high wages."

The Hungarian forint EURHUF= rose 0.5%, tracking broader gains, even as data showed consumer and business confidence worsened in May as households turned gloomier amid a surge in inflation.

The Czech crown EURCZK= gained 0.4% after Governor Jiri Rusnok said on Sunday the central bank will likely raise interest rate further in June if economic data are in line with the bank's latest forecast.

The Russian rouble RUBUTSTN=MCX rose 3% against the dollar, supported by capital controls and an upcoming month-end tax period. The Russian central bank also denied a media report it has started purchasing foreign currency in order to stop an uncontrolled strengthening of the rouble.

Turkey's lira TRY= inched 0.2% lower in choppy trading after central bank data showed business confidence among Turkish manufacturers fell to 109.4 points in May compared with 109.7 points in April.

The South African rand ZAR= ticked 0.2% higher after the S&P revised the country's outlook to "positive" on Friday.

For GRAPHIC on emerging market FX performance in 2022, see Link For GRAPHIC on MSCI emerging index performance in 2022, see Link

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see
Reporting by Bansari Mayur Kamdar; Editing by Krishna Chandra Eluri

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.