EMERGING MARKETS-Stocks hit 2-wk high, forint recovers

                                
 * Emerging stocks rise nearly 1 pct, spreads tighten
                                
 * Emerging currencies rally, forint up after c.bank comments
                                
 * Lithuania sounding investors out for Eurobond
                                
 
                                
 By Carolyn Cohn
                                
 LONDON, Sept 2 (Reuters) - Emerging stocks hit two-week
highs and several emerging market currencies rose 1 percent on
Thursday, boosted by strong U.S. and Chinese data, and the
Hungarian forint recovered after central bank comments.
 Wall Street posted its best day in eight weeks on Wednesday
following higher than anticipated U.S. and Chinese purchasing
managers' data.
                                
 That renewed investor appetite for riskier assets following
a 2 percent loss in emerging stocks last month.
                                
 "Investors were positioned for more bearish news and changed
tack when Chinese PMI and U.S. ISM figures came out better than
expected," said Kasper Bartholdy, head of sovereign strategy and
co-head of economics at Credit Suisse. 
                                
 "The numbers are no cause for jubilation but they are not as
disastrous as some people thought."
The MSCI emerging equities index <.MSCIEF> rose half a
percent to two-week highs and the Thomson Reuters emerging
equity index <.TRXFLDEEPU> gained 0.2 percent.
                                
 Emerging sovereign debt spreads <11EMJ> tightened 2 basis
points to 286 bps after narrowing sharply on Wednesday.
                                
 Investors expect fresh emerging debt supply over the next
few months.
                                
 Lithuania has sounded investors out over a seven-year
euro-denominated bond, that would raise at least 500 million
euros, during a roadshow this week, fund managers said.
[ID:nLDE6801QJ]
                                
 
FORINT RECOVERS
                                
 Most emerging European currencies rose ahead of the European
Central Bank meeting later on Thursday.
                                
 The forint climbed nearly 1 percent against the euro
<EURHUF=> and held above record lows against the Swiss franc
<CHFHUF=> after central bank spokesman Andras Simon told Reuters
on Wednesday that the strong Swiss franc posed risks to
Hungary's economy, comments which Unicredit described in a
client note as "quasi-verbal intervention".
                                
 Simon also said Hungary may need the support of an IMF and
European Union safety net if global investor sentiment turns
negative.
                                
 Hungary's talks with the IMF and EU about a review of its
current financing deal collapsed in July. This deal, which it
took to fend off a currency crisis in October 2008, runs out
next month.
                                
 Reflecting the continued nervousness, Hungary sold 15
billion forints less than its original offer in a 12-month
T-bill auction on Thursday.
                                
 "We recommend using the current rally to rebuild long EURHUF
or PLNHUF positions," said BNP Paribas analysts in a client
note.
                                
 The Polish zloty <EURPLN=> and South African rand <ZAR=>
also rose at least 1 percent, but the Romanian leu hit fresh
five-week lows <EURRON=> as investors fret about political will
to implement austerity measures.
                                
 (Additional reporting by Sujata Rao and Sebastian Tong;
editing by Patrick Graham)