CEE MARKETS-FX, stocks gain as investors eye riskier assets

                                
 * Buoyed by more hopeful news on Japanese nuclear plant
                                
 * Hungary parliament due to vote on rate setters
                                
 
                                
 BUCHAREST, March 21 (Reuters) - Emerging European currencies
and stocks rose in early trade on Monday as indications the
situation at a Japanese nuclear power plant was improving
boosted risk appetite.
                                
 Stock markets rose across central Europe, led by Budapest
<.BUX> and Bucharest <.BETI> as investors picked up riskier
assets after power cables were connected to all six nuclear
reactors at the tsunami-damaged Fukushima Daiichi power plant,
raising hope that Japan can contain its nuclear crisis.
                                
 Hungary's forint <EURHUF=> led currency gains, rising 0.4
percent to 270.97 per euro by 0839 GMT before parliament was due
to vote on two new rate setters for the central bank's monetary
policy council.
                                
 The ruling Fidesz party, which holds a two-thirds majority
in the house, named its candidates for the two remaining vacant
seats on the panel. Fidesz's move to nominate rate setters
followed government-sponsored legal changes which have been
criticised by the European Central Bank and the European Union.
However, the appointments are not expected to result in a change
in interest rate policy. [ID:nLDE72J094]
                                
 "It looks like the complaints from the EU and the ECB
brought (Fidesz) back to their senses and they nominated rate
setters that are acceptable to markets," a dealer said.
                                
 "The fact that the government will not go head to head with
the central bank could calm markets."
                                
 Poland's zloty <EURPLN=> rose 0.4 percent to 4.049 per euro.
                                
 "We have a little recovery. The zloty may strengthen further
to 4.02 against the euro," one Warsaw-based dealer said.
                                
 The market was awaiting delayed Polish current account data
for January, due to be released on Monday at 1300 GMT. Analysts
expect a deficit of 1.242 billion euro versus a 1.573 billion
euro deficit in December. 
                                
 The Czech crown <EURCZK=> was nearly flat and still close to
the 24.400 level against the euro it hovered around for much of
last week. The market is awaiting a central bank policy meeting
on Thursday but 19 of 20 analysts polled by Reuters expect no
change to record low rates, and markets are not pricing in a
first rate hike until June. [ID:nLDE72F0TB]
                                
 The Romanian leu <EURRON=> was trading close to nine-month
highs, gaining on indications the recession-hit economy is
slowly picking up and on a new loan deal with the International
Monetary Fund, already agreed on a technical level and due to be
rubber stamped on Friday.
                                
 "The regional FX has firmed in the past days. The leu is
also benefiting from the likelihood of a new deal with the IMF,
due to be signed soon," said Ionut Dumitru of Raiffeisen Bank in
Bucharest.
 --------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2011 
Czech crown      <EURCZK=>  24.435    24.426  -0.04%   +2.31%
Polish zloty     <EURPLN=>   4.049     4.067  +0.44%   -2.25%
Hungarian forint <EURHUF=>  270.97    272.14  +0.43%   +2.59%
Croatian kuna    <EURHRK=>   7.376     7.377  +0.01%   +0.05%
Romanian leu     <EURRON=>   4.166     4.167  +0.02%   +1.61%
Serbian dinar    <EURRSD=>     103    103.01  +0.01%   +2.84%
All data taken from Reuters at 0939 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.
 (Reporting by Sam Cage and Reuters bureaus; Editing by Susan
Fenton)