* Emerging shares flat as Japan revives growth uncertainty
* Russian shares sag to near month-lows, rouble recovers
* South African rand gains but labour unrest eyed
By Sebastian Tong
LONDON, Aug 16 (Reuters) - Emerging markets were flat on
Monday, dampened by renewed uncertainty over the global economy,
but central European currencies firmed, still bolstered by the
region's better-than-expected GDP readings late last week.
Russian stocks sagged to their lowest levels in nearly a
month, while labour unrest checked gains in the South African
rand against the dollar.
Despite the markets' Friday boost from Germany's
surprisingly strong second-quarter economic growth, stubbornly
high unemployment and a protracted housing slump continue to
fuel fears of a double-dip U.S. recession.
The prognosis for the global economy once again tipped to
the negative following overnight data showing Japanese output
growth slowing to a crawl. []
"We're pretty much left in the same place from last week
with the same concerns about global growth. Until we get some
clarity, the markets are going to remain rangebound," said
Robert Beange, emerging markets currency strategist at RBC
Capital Markets.
Amid thin trading volumes, the benchmark emerging stocks
index <.MSCIEF> was mostly unchanged at 1025 GMT while emerging
sovereign debt <11EMJ> widened 6 basis points to trade at 283
bps over U.S. Treasuries.
The Thomson Reuters Emerging European stock index
<.TRXFLDEEPU> firmed 0.3 percent, with gains seen across eastern
European bourses.
Forecast-beating second-quarter GDP figures nudged Czech
<>, Hungarian <> and Romanian <> stocks higher,
though concern remains over the impact of fiscal cuts on still
fragile consumer demand.
Eastern European currencies were also broadly firmer, though
the Czech crown steadied near three-week lows to the euro
<EURCZK=>.
ROUBLE RECOVERS
Russian shares <> dipped 0.7 percent, languishing at
their lowest levels in 3-1/2 weeks amid concerns over the impact
of the severe drought that has laid waste to vast tracts of the
country's grain crop.
The rouble, which ended Friday with its largest weekly loss
versus the dollar <RUBUTSTN=MCX> since mid-May, regained ground
at the start of the monthly tax period that will see exporters
convert foreign-currency revenues for payments. []
Against its dollar-euro basket, the rouble advanced for the
second day after a seven-day losing streak <RUS=MCX>.
The rand held its ground against the dollar but stayed near
its weakest in two weeks <ZAR=D3> amid expectations of further
labour unrest in the country.
Talks between South African autoworkers seeking wage
increases and their employers broke down over the weekend,
prolonging an ongoing strike. []
"Strikes will remain on the radar screen in South
Africa...So far the rand has remained super-strong in the
vicinity of 7.30 regardless of the U.S. dollar strength and
copper prices pull back," BNP Paribas said in a note.
South African June retail figures due this Wednesday are
expected to show a boost from the World Cup.
(Reporting by Sebastian Tong; Editing by Hugh Lawson)
