CEE MARKETS 1-CEE FX up on global mood, Hungary higher

                                
 WARSAW, Oct 23 (Reuters) - Emerging Europe's currencies were
mostly higher early on Friday, bolstered by better global
sentiment and signs of more improvement for Hungary, but little
moved by data out of Poland.
                                
 Hungary's markets were closed on Friday for a holiday but
the forint <EURHUF=> was up 0.4 percent to 264.84 against the
euro at 0749 GMT after central bank deputy governor Julia Kiraly
said the bank might lower interest rates further from the
current 7 percent to help underpin the economy. [ID:nPRG003728]
                                
 Speaking in Prague, she also said she expected
non-performing loans to peak at around 10 percent in the first
half of next year.
                                
 Hungary's bond yields dropped across the curve on Thursday
after the debt agency sold more than the offered 60 billion
forints worth of bonds. [ID:ID:nLM524498]
                                
 Other currencies were also slightly up on Friday, with the
Czech crown <ERUCZK=> rising 0.1 percent and Poland's zloty
<EURPLN=> staying relatively stable.
                                
 Poland's statistics office released data showing retail
sales rose 2.5 percent year-on-year in September, less than an
analysts' forecast of 4 percent [ID:nWAR011029], while
unemployment in the same month stood at 10.9 percent, slightly
less than forecast. [IDN:nWAR011030]
                                
 Analysts said the data was unlikely to have major impact on
the foreign exchange market.
                                
 "Better than expected results of U.S. companies as well as
better (U.S) leading indicators have translated into a stronger
zloty," analysts at BRE bank in Warsaw wrote in a note.
                                
 "The outlook for coming weeks remains positive for the
currency as more and more investors are becoming certain about
Poland's economic growth."
                                
 The global sentiment also supported local equities markets,
with Warsaw WIG20 <.WIG20> rising almost 1.5 percent.
                                
 Only Romania's leu <EURRON=> lagged behind as political
tensions in the country still remain in focus, dealers said.
                                
 The International Monetary Fund said on Thursday it would
start a second review of Romania's aid package later this month,
relenting on previous plans to postpone the mission until a new
government was formed. [ID:LM692280]
                                
 However, IMF mission chief for Romania Jeffrey Franks said
that a follow-up mission may be needed due to "ongoing political
developments".
                                
 Markets shrugged off another wobble for Latvia's lat, which 
weakened again to the central bank's intervention level as
markets eye the coalition government's efforts to draw up the
2010 budget and any signs of further political tensions.
                                
 Latvia has been at the centre of the financial maelstrom
sweeping central and eastern Europe over the past year as the
government tries to maintain the lat currency's peg to the euro
in the face of deep recession.
 --------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2009 
Czech crown      <EURCZK=>   25.932    25.951  +0.07%   +3.17%
Polish zloty     <EURPLN=>   4.174    4.172   -0.05%    -1.41%
Hungarian forint <EURHUF=>   264.84    265.78  +0.35%    -0.49%
Croatian kuna    <EURHRK=>   7.215    7.215   0%   +2.08%
Romanian leu     <EURRON=>   4.287    4.288  +0.02%    -6.36%
Serbian dinar    <EURRSD=>   93.051    93.123  +0.08%    -3.84%
All data taken from Reuters at 0849 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.
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 (Reporting by Reuters bureaus, Writing by Dagmara
Leszkowicz; editing by Patrick Graham)