* Polish, Hungary stocks hit 10-mth high, emerging stocks up
* Turkish stocks at 19-month high, IMF deal in focus
* Israeli stocks hit 2-week highs, central bank meeting eyed
By Carolyn Cohn
LONDON, Aug 24 (Reuters) - Central European stocks hit
10-month highs on Monday, tracking a storming rally in global
equities, and Turkish assets rose on expectations of a deal
between Turkey and the International Monetary Fund.
Czech data last week showed growth in the second quarter,
and recent upbeat data from the euro zone also boosted markets
in neighbouring eastern Europe.
However, global emerging stocks underperformed developed
markets and oil, which rallied on upbeat U.S. data and weekend
comments from the world's key central bankers.
"We've come a long way already and a lot of the assumptions
about a V-shaped recovery is priced in," said Tim Ash, head of
CEEMEA research at RBS.
"It's also August which means many people remain away."
Hungarian stocks <> leapt 4 percent after a two-day
holiday to their highest since Oct 2008, and Polish stocks
<> were also at 10-month highs.
The MSCI eastern European index <.MIEE00000PUS> hit 10-month
highs but global emerging equities <.MSCIEF> only reached their
highest in 10 days, up 1.67 percent from the U.S. close.
Emerging sovereign debt spreads <11EMJ> tightened by 3 basis
points to 362 bps over U.S. Treasuries.
Romania said it was planning a five to 10-year Eurobond
totalling 500 million-1.5 billion euros [].
The Hungarian central bank is expected to cut interest rates
by 50 basis points to 8 percent on Monday.
The Czech crown approached 9-month highs against the euro
<EURCZK=> set on Friday before trimming gains, and most emerging
European currencies were generally steady.
TURKEY RALLY
Turkish assets rallied after finance minister Mehmet Simsek
was quoted as saying there were no problems with economic policy
in Turkey's negotiations with the IMF.
The Turkish government has said it wants an agreement with
the IMF before September, after a stand-by deal expired in May
2008.
Turkish five-year credit default swaps <TRGV5YUSAC=MG>, used
to insure debt against default, fell around 9 basis points to
195.8 bid, according to Markit data.
Turkish stocks <> hit their highest since Jan 2008 and
domestic bond yields hit historic lows.
The Bank of Israel announces its interest rate decision at
1430 GMT. Nine out of 12 economists expect no rate move, but
three expect a rate hike from the current 0.5 percent.
A rate rise would make Israel the first major central bank
to increase interest rates as the global economy starts to come
out of recession.
Israeli stocks <> hit two-week highs but the shekel
<ILS=> was steady against the dollar.
"We expect policy rates to rise by 50 bps by end-year," said
analysts at HSBC in a client note.
"Widening interest rate differentials vis-a-vis Fed
rates will be shekel-positive."
(Additional reporting by Sebastian Tong; editing by Chris
Pizzey)
