Stocks rise on hopes China will ease tech crackdown
* China stocks up as Shanghai COVID situation improves, focus on tech meeting
* Hungary, Poland, Romania currencies up as GDP data beats estimates
* Indian rupee hits record low before pulling back a little
* Turkish lira extends losses to 9th straight session
* Rouble reverses rally as Russia eases capital controls
By Bansari Mayur Kamdar and Anisha Sircar
May 17 (Reuters) - Emerging market stocks jumped on Tuesday, helped by a rise in Chinese shares on hopes Beijing will ease its tech sector crackdown, while currencies inched up on weakness in the dollar and strong data from Central European economies.
MSCI's index of emerging market (EM) stocks .MSCIEF rose 2%, while its currencies counterpart .MIEM00000CUS added 0.5%.
Mainland China's CSI300 Index .CSI300 gained 1.3%, while Hong Kong's Hang Seng Index .HSI climbed 3.1%, as tech firms listed in the city .HSTECH jumped more than 5% on hopes a meeting between Chinese Vice-Premier Liu He and tech executives would ease a tech sector regulatory crackdown.
Aiding sentiment, Shanghai reported a long-awaited milestone of three straight days with no new COVID-19 cases outside quarantine zones — the "zero COVID" status.
Among emerging currencies, the South African rand ZAR= firmed 0.8% as a pullback in the U.S. dollar =USD offered support despite continued power cuts that cloud the outlook of domestic economic growth.
The Hungarian forint EURHUF= , Polish zloty EURPLN= and Romanian leu EURRON= firmed between 0.1% and 0.4% against the euro after GDP estimates from the central European countries were well above market expectations, partly due to robust domestic demand.
Strong GDP indicators show these economies are holding up quite well, said Jakob Christensen, chief analyst and head of EM research at Danske Bank.
"The Czech Republic is the most hawkish central bank, while Poland's and Hungary's central banks are a bit behind, but in general, higher inflation should boost rate hike expectations and compared to Western Europe, these countries are quite advanced in hiking rates. So overall, this should be stimulating interest into these currencies."
Elsewhere, the Turkish lira TRY= slid 2% to beyond 15.87 against the dollar, extending its decline into a ninth consecutive day towards record lows it hit in December, as concerns about global recession fuel selling pressure on the currency.
The Indian rupee INR=IN weakened to a record low of 77.73 versus the dollar before pulling back a little.
The Ukraine war and a weak rupee have pushed up energy and raw material costs for companies, with India's wholesale prices accelerating at the fastest pace since at least April 2005.
The Russian rouble weakened 1% EURRUBTN=MCX against the euro, stepping away from near five-year highs, after the central bank eased some capital controls that were the main driver of its strength in the past few weeks.
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Reporting by Bansari Mayur Kamdar and Anisha Sircar in
Editing by Mark Potter
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