* Stocks, output data support Polish zloty
* Hungary rate meeting minutes due 1300 GMT
* Czech central bank seen keeping rates on hold
BUCHAREST, March 18 (Reuters) - Emerging European stocks
rose in early trade on Friday as safe-haven flows reversed on G7
intervention to curb the Japanese yen, while the region's
currencies were mixed.
Poland's zloty was supported by reheated expectations of a
rate hike.
Polish, Hungarian and Czech stocks were all stronger on the
day, led by Budapest's BUX <>.
Moves in CEE currencies have been relatively modest
so far compared to swings in global markets, although traders
said assets in the region could get dragged lower by rising
tension in the Middle East after the United Nations approved
military action in Libya.
The Polish zloty <EURPLN=> was up 0.2 percent to the euro by
0845 GMT, with traders seeing it moving in a wide range of
4.0-4.10. The Hungarian forint <EURHUF=> was flat on the day,
while the Czech crown <EURCZK=> was 0.2 percent weaker.
"The region should benefit from the (yen) intervention but
the question is what will be the next development," a Prague
dealer said.
"Everything is depending on news in Japan, and then
everybody will also have a look on Libya. It is (currently)
pretty hard to predict markets."
Polish industrial output and producer prices reheated
expectations on Thursday for a rise in interest rates next
month, while central bank minutes showed the council considered
and rejected a March hike. []
In Hungary, the currency showed little reaction to gross
average wages <HUWAGE=ECI> rising by an annual 1.6 percent in
January after a 4.6 percent drop in December. [].
Investors are waiting for the release of February rate
meeting minutes at 1300 GMT. Markets will turn towards Budapest
on Monday when parliament could fill the remaining two vacant
spots on the central bank's rate-setting Monetary Council
[].
Analysts have closely followed the nomination process for
clues as to whether the ruling Fidesz party would appoint
economists supportive of its pro-growth agenda, although they
have said the new Council was unlikely to embark on an easing
campaign.
Elsewhere in the region, a Reuters poll showed analysts
expect the Czech central bank to keep interest rates on hold at
its March 24 meeting on subdued inflation pressures, and all
expect the next move to be a quarter-point hike. []
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2011
Czech crown <EURCZK=> 24.415 24.358 -0.23% +2.4%
Polish zloty <EURPLN=> 4.057 4.063 +0.15% -2.44%
Hungarian forint <EURHUF=> 273.67 273.6 -0.03% +1.57%
Croatian kuna <EURHRK=> 7.388 7.36 -0.38% -0.11%
Romanian leu <EURRON=> 4.169 4.168 -0.02% +1.54%
Serbian dinar <EURRSD=> 103.02 102.84 -0.17% +2.82%
All data taken from Reuters at 1006 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaus; Writing by Luiza Ilie;
Editing by John Stonestreet)
