* Emerging stocks rise to 10-day highs, debt spreads tighten
* Hungarian forint rallies after election, rate cut expected
* Albania starts roadshow for debut Eurobond
* Rouble hits fresh 16-month high
By Carolyn Cohn
LONDON, April 26 (Reuters) - Emerging stocks jumped more
than 1 percent to a 10-day high on Monday, underpinned by strong
U.S. data and some expectations of a bail-out for Greece, while
the Hungarian forint was boosted by an election win for the
centre-right.
Greece's finance minister said on Sunday that emergency aid
would arrive in time to avert a Greek debt default, lifting
markets in neighbouring eastern Europe.
U.S. data also buoyed appetite for riskier assets, with data
on Friday showing sharp rises in new home sales and durable
goods orders in March.
Gains were tempered, however, after Germany's foreign
minister said on Monday the country had not yet decided on Greek
aid. []
"There was optimism over Greece when it announced it was
going to get the money early, but there is doubt over whether
the Germans will release it -- emerging markets are doing okay
though," said Nigel Rendell, emerging markets strategist at RBC.
"In Hungary, the mood is quite optimistic after the
election."
Benchmark emerging equities <.MSCIEF> jumped 1.2 percent to
10-day highs before easing slightly, and emerging market
currencies firmed.
The Turkish lira <TRY=> approached a three-month high
against the dollar and the Romanian leu hit a two-week high
against the euro <EURRON=>.
Emerging sovereign debt spreads tightened by 2 basis points
to 241 bps over U.S. Treasuries <11EMJ>.
Albania starts a roadshow for a debut Eurobond on Monday,
following successful issues last week by Russia and Egypt.
Ukraine is planning a $1.3 billion Eurobond in 2010,
according to draft budget figures published on Monday, after the
deputy finance minister said last week that the recovering
sovereign may tap international markets in June.
Kazakh and Polish state-owned borrowers Kazmunaigaz and PKO
are also on the road ahead of planned Eurobonds, with investors
keen to look at offerings from higher-yielding borrowers.
[] []
FORINT FIRM
The forint jumped to an 11-day high against the euro
<EURHUF=> before trimming gains, Hungarian stocks rallied 2
percent and credit default swaps fell after the centre-right
Fidesz party won a two-thirds majority in Hungarian elections.
"Such a mandate ... removes an important political risk,"
said analysts at BNP Paribas in a client note.
"The market will react to this very positively although the
big test will come as Fidesz starts negotiations with the IMF
over this year's fiscal targets."
Hungary's central bank is expected to cut rates by 25 basis
points on Monday to 5.25 percent, with its decision due to be
announced at 1200 GMT.
Hungary's five-year credit default swaps, used to insure
against restructuring or default of debt, dropped to 181.1 bps
from 185, according to CDS monitor CMA DataVision.
Meanwhile, the shekel <ILS=> was steady ahead of an expected
Israeli rate hike of a quarter point later on Monday, to 1.75
percent.
The rouble hit a fresh 16-month high against a euro-dollar
basket <RUS=MCX>, buoyed by oil trading above $85 a barrel
<CLc1>, and the central bank shifted its floating band for the
31st time since mid-February.
(Editing by Susan Fenton)
