CEE MARKETS 1-Currencies ease as stocks fall, crown bucks trend

                                
 * Currencies ease stock markets fall
                                
 * Forint unmoved by wages data, awaits cbank meeting
                                
 * Czech crown firms on PLNCZK cross-trade
                                
 
                                
 By Sandor Peto
                                
 BUDAPEST, Aug 19 (Reuters) - Central European currencies
eased on Monday as risk aversion rose again in global markets,
while investors in the recession-ridden region pondered the
likely pace of further monetary easing.
                                
 "We're still closely watching Asian stock exchanges and
these are falling," a foreign currency dealer at Bank Pekao SA
said, adding that the dollar's firming against the euro also
indicated weakening tolerance to risk.
                                
 Poland's zloty <EURPLN=> and the Hungarian forint <EURHUF=>
both shed 0.4 percent against the euro by 0726 GMT, to 4.186 and
273.43, respectively. Romania's leu <EURRON=> eased 0.2 percent,
while the Czech crown <EURCZK=>, often regarded as a safe haven
within the region, firmed 0.4 percent.
                                
 European stocks eased after continued falls by Chinese
shares. Hungary's BUX equity index <.BUX> and Poland's WIG20
<.WIG20> each shed about one percent, while Prague's PX <.PX>
lost about 1.5 percent.
                                
 The region's assets remain heavily reliant on global market
sentiment changes which in the past few days caused some falls
after strong rises from lows hit early this year.
                                
 Investors are watching for signs of the beginning of a
global recovery while in Central Europe, domestic demand, the
pace of interest rate cuts and a rise in budget deficits are key
local factors.
                                
 
                                
 CENTRAL BANKS WATCHED
                                
 The annual growth of Hungarian gross wages slowed to 1.1
percent in June from 2.9 percent in May according to figures
released on Wednesday, indicating that domestic demand would
remain sluggish.[ID:nLJ543981]
                                
 Poland, which has a bigger internal market than other
counties in the region and has avoided recession unlike its
neighbours, said earlier this week that corporate wages rose 3.9
percent in July, well above analysts' expectation for a 2.1
percent rise.
                                
 Global risk taking trends have usually overshadowed domestic
figure in the past months.
                                
 Poland's July industrial output figures to be released later
on Wednesday, may move markets, Danske Bank said in its daily
note on the region. Weaker than expected data could trigger
speculation about further central bank rate cuts, it said.
                                
 Hungary's central bank will meet next Monday, and analysts
expect it to cut its 8.5 percent base rate further by 50 basis
points, after a 100 basis point reduction last month, which was
twice as big as expected.[ID:nnLAG003669]
  "Hungarian banks will not trade over the long week-end
(starting on Thursday) which leaves only foreigners in the
market but they are unlikely to stir the water as the market is
very illiquid without the domestic banks," one Budapest-based
dealer said. 
                                
 "I don't think there will be trade linked to Monday's
central bank rate meeting today. But on Monday there will be,"
the dealer added.
                                
 In the Czech Republic, Air France-KLM <AIRF.PA>, Europe's
biggest air carrier, pulled out of the bidding for state-owned
Czech Airlines.[ID:nLJ537397]
                                
 But the crown was helped by buying for the zloty which had
been a favourite of investors before sentiment worsened in the
past days.
                                
 "Closing of PLN/CZK positions is resulting in people selling
euros for crowns, pushing the crown stronger," a Prague dealer
said.
 ----------------------MARKET SNAPSHOT-------------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2009 
Czech crown      <EURCZK=>   25.602    25.709  +0.42%   +4.5%
Polish zloty     <EURPLN=>   4.186    4.169   -0.41%    -1.7%
Hungarian forint <EURHUF=>   273.43    272.35   -0.39%    -3.61%
Croatian kuna    <EURHRK=>   7.31    7.308   -0.03%   +0.75%
Romanian leu     <EURRON=>   4.22    4.213   -0.17%    -4.87%
Serbian dinar    <EURRSD=>   93.28    93.377  +0.1%    -4.07%
All data taken from Reuters at 0926 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.
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 (Reporting by Reuters bureaux, writing by Marius Zaharia,
Editing by Jon Boyle)