CEE MARKETS 1-Stocks give FX boost, leu up before debt sale

                                
 * Rising stocks give FX a lift
                                
 * Markets watch Romania debt tender
                                
 * FinMin says can afford to reject bids again.
                                
 
                                
 PRAGUE, June 14 (Reuters) - Rising stock markets boosted
central European currencies on Monday, with the Romanian leu up
a touch before a closely watched Romanian debt tender later in
the day that will precede a government no-confidence vote.
Uncertainty over Tuesday's vote and the government's ability
-- if it survives -- to make tough spending cuts in the budget
have pushed yields sharply up, prompting the Romanian Finance
Ministry to scrap three auctions since May 6. [ID:nLDE6590VQ]
Analysts expect Bucharest, which received a 20 billion euro
IMF/EU aid package, will have to swallow higher yields or reject
all bids again at Monday's sale of six-month treasury bills.
                                
 The leu <EURRON=> rose 0.2 percent to 4.22 to the euro,
rebounding after bidding at 4.2443, its lowest level since May
6. Dealers said they expected the central bank to counter any
weakening pressure.
                                
 "Regional sentiment will continue to dominate and the
central bank will likely intervene if the leu starts sliding," a
Bucharest dealer said.
                                
 Investors have become worried about Bucharest's ability to
enforce austerity needed to meet the conditions of its aid
agreement.
                                
 Finance Minister Sebastian Vladescu was quoted as saying on
Monday that Romania can afford to reject bids at debt tenders if
yields asked by investors are too high. [ID:nLDE65D0BX]
                                
 Worries about debt levels in eastern Europe have caused some
investors to wonder if some countries could face a similar
situation to Greece.
                                
 The Hungarian forint has gained 3 percent since falling to a
one-year low on June 4 after government officials made comments,
later downplayed, suggesting Hungary was close to a Greek-style
debt crisis.
                                
 On Monday, the forint <EURHUF=> led gains with a 0.3 percent
rise to bid close to the psychologically important 280 per euro
level. The Polish zloty <EURPLN=> also rose 0.2 and the Czech
crown <EURCZK=> was up 0.1 percent.
                                
 Stock markets tracked western markets higher, gaining 0.6
percent to 1 percent. 
                                
 "Equity markets rose, the euro is firmer (against the
dollar) and the whole region is rising," one Budapest-based
currency dealer said. "It's possible that the forint can
strengthen beyond 280 (against the euro) today."
                                
 
--------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2010 
Czech crown      <EURCZK=>   25.722   25.747  +0.1%    +2.32%
Polish zloty     <EURPLN=>    4.097    4.104  +0.17%   +0.17%
Hungarian forint <EURHUF=>  280.4    281.33   +0.33%   -3.58%
Croatian kuna    <EURHRK=>    7.225    7.226  +0.01%   +1.17%
Romanian leu     <EURRON=>    4.22     4.228  +0.19%   +0.41%
Serbian dinar    <EURRSD=>  103.4    103.46   +0.06%   -7.27%
All data taken from Reuters at 0940 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.

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 (Reporting by Reuters bureaus, writing by Jason Hovet; Editing
by Susan Fenton)