Stocks break four-day winning streak as Tencent, Alibaba slip



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* Alibaba, Tencent fined over failure to report deals

* Turkey is prioritising inflation control- FinMin

* Kazakh dollar bonds hit after government resigns

* Evergrande to seek delay in coupon repayment

By Susan Mathew

Jan 5 (Reuters) - Emerging market stocks broke a four-day winning streak on Wednesday as regulatory fines hit heavyweights Tencent and Alibaba, dragging tech stocks, while worries about inflation and tighter U.S. monetary policy also weighed.

China's tech sector .CSIINT slipped 2.8%, dragging the broader blue-chip index .CSI300 down 1.0%. Hong Kong's main index .HIS closed down 1.6% in its worst session in more than two weeks.

Alibaba 9988.HK , Tencent 0700.HK and Bilibili 9626.HK dropped between 2.1% and 10.6% after the country's top market regulator fined them for failing to properly report about a dozen deals - the latest act in Beijing's crackdown on several industries that began last year.

With e-commcerce firm Meituan 3690.HK also sinking 11.2%, MSCI's China-heavy index of emerging stocks .MSCIEF fell 0.9%, further away from three-week highs.

Stocks in Russia .IMOEX , South Africa .JTOPI and Poland .WIG all fell between 0.1% and 0.3%, tracking weak Asian sentiment.

In Kazakhstan, violent protests over fuel price hikes saw its government resign - serving as a warning to other emerging markets policy makers trying to square the circle between tackling high inflation and resulting burdens on the population. .

Kazakhstan's dollar-denominated sovereign bonds suffered sharp falls with the 2045 issue dropping around 3 cents to the dollar and many back to levels last seen in 2020, Tradeweb data showed. XS1263139856=TE

Turkey is now prioritising a "sincere" fight against high inflation, Finance Minister Nureddin Nebati said on Wednesday. Inflation there rose to 36% in December after a series of interest rate cuts sought by President Tayyip Erdogan.

Turkey's lira TRY= was last up 0.1% at 13.4 per dollar after having fallen up to 1.6% earlier in the session.

"We think that (Turkey's) headline inflation will likely move towards 45% in the next couple of months and might increase further towards 48% or so in 2Q," said Credit Suisse analyst Berna Bayazitoglu.

But the ongoing lira volatility leaves the margin of error wide, Bayazitoglu said, adding that recently announced increases in electricity and natural gas prices and minimum wage add to the inflationary pressures.

Most other emerging markets currencies made guarded moves against the dollar as investors priced in policy tightening in the United States, slating in the first of three rate hikes signalled, for May.

This sent U.S Treasury yields and the dollar higher overnight. On Wednesday, the dollar index .DXY held steady.

China's yuan CNY= and South Africa's rand ZAR= were flat, while Russia's rouble RUB= hit its lowest in more than five weeks.

Embattled China Evergrande Group 3333.HK lost another 0.6% after it sought delay to onshore bond payment due on Saturday, which would be its first domestic bond payment miss. A bondholder meeting is scheduled for Jan. 7-10.

Bad loan company China Huarong 2799.HK plunged 50% to a record low, on resuming trade following a nine-month hiatus.

For a GRAPHIC on emerging market FX performance in 2021, see Link For a GRAPHIC on MSCI emerging index performance in 2021, see Link

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see



GRAPHIC - emerging market FX performance in 2021 Link
GRAPHIC - MSCI emerging index performance in 2021 Link
China stocks battered by Beijing clampdown Link



Reporting by Susan Mathew in Bengaluru;
Editing by Tomasz Janowski

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