* Stocks recover nearly half of week's losses
* Czech Republic prices 1.5 bln euro bond
* Abu Dhabi's Mubadala sets guidance on 2-tranche dlr bond
* South African rand hits new 6-mth high, Polish zloty rises
By Carolyn Cohn
LONDON, April 29 (Reuters) - Emerging stocks recovered on
Wednesday after two days of swine flu-triggered falls and the
Czech Republic and Abu Dhabi's investment fund Mubadala sold
Eurobonds, taking advantage of recent debt spread tightening.
Emerging equities tracked developed market stocks which
gained on forecast-beating earnings from European companies,
ahead of U.S. growth data due at 1230 GMT and being watched for
any signs of recovery in the world's largest economy.
"People are in a better mood after two days of pullback,"
said Beat Siegenthaler, chief emerging markets strategist at TD
Securities.
"Potentially any kind of better than expected news is being
interpreted very positively. People seem desperate to put a
positive spin on things."
Benchmark emerging equities <.MSCIEF> rose more than 2
percent after losing nearly 5 percent in the first two days of
this week. Before this week, emerging stocks had posted seven
weeks of gains.
Emerging sovereign debt spreads <11EMJ> edged out 1 basis
point to 552 bps over U.S. Treasuries, after narrowing 7 basis
points on Tuesday.
"It is probably wrong to assume this represents any major
improvement in risk appetite," said David Lubin, head of
emerging markets research at Citi.
"The main thing is that euro/dollar has shifted 1.5 percent
(this week) and dollar weakness is always going to be associated
with stronger emerging markets."
NEW BONDS
The Czech Republic priced a 1.5 billion euro 5.5-year bond
at 190 basis points over mid-swaps. Finance minister Miroslav
Kalousek said another Eurobond was not likely this year,
although he could not rule that out. []
Order books were "north of 2 billion" euros, said a source
at one of the lead managers, with around 180 investors.
Abu Dhabi's government investment fund Mubadala Development
Company set yield guidance on a two-tranche dollar bond at 400
basis points over Treasuries for a benchmark five-year tranche
and 470 bps for a $500 million 10-year tranche.
Order books totalled more than $5 billion, a source at one
of the lead managers said.
Slovakia and Bahrain also this week mandated banks to
arrange international issues, as debt spreads have stabilised at
tighter levels.
Sovereign debt spreads widened as far as 900 bps in Oct 2008
in the aftermath of the collapse of U.S. investment bank Lehman
Brothers.
The Mexican peso <MXN=> edged up after losing as much as 6
percent this week on the swine flu outbreak, which Mexican
authorities say has killed 159 people in that country.
Emerging market currencies were generally stronger, with
many emerging European currencies at their highest in at least a
week.
The Polish zloty rose 1.4 percent to six-day highs against
the euro <EURPLN=> from the U.S. close, following a report on
Tuesday which showed the exposure of the country's exporters to
soured currency options was half of previous estimates.
[]
The South African rand <ZAR=> hit a fresh 6-month high
against the dollar after data showing a slight slowdown in
consumer price inflation last month.
(Additional reporting by Sujata Rao; Editing by Victoria
Main)
