CEE MARKETS 3-Czech crown recovers as political woes end

                                
 * Czech political crisis ends
                                
 * FX volatile, tracking dwindling stocks
                                
 * Romania output falls, Czech jobless rate rises
                                
 * Polish bonds gain after well-bid tender
                                
 * Anti-government protests in Moldova have little impact
                                
 
                                
 (Updates throughout, changes prices)
                                
 By Marius Zaharia
                                
 BUDAPEST/BUCHAREST, April 8 (Reuters) - The Czech crown
erased some of the earlier losses on Wednesday after a political
crisis ended, with a new prime minister set to be appointed on
Thursday and political parties agreeing on a stimulus package.
                                
 Czech President Vaclav Klaus said he will appoint
non-partisan Jan Fischer as prime minister on Thursday
[ID:nL8944770], while ruling parties have agreed with the
opposition to back anti-crisis measures [ID:nPRA002498].
                                
 By 1544 GMT, the crown <EURCZK=> was only a touch weaker
than Tuesday's domestic close, trading at 26.55 per euro,
compared to 26.591 before the presidency's announcement.
                                
 Other emerging European currencies were mixed in thin
pre-Easter trade, mostly tracking the volatility of global
shares and shrugging off an annual plunge in Romanian industrial
output [nL8707118] and a higher than expected rise in
unemployment in Czech Republic [nPRA002492].
                                
 "As long as the earnings season is ongoing, shares would be
the main driver of (regional) currencies, unless something
unusual occurs," one dealer said.
                                
 The Polish zloty <EURPLN=> weakened briefly early in the
session after a central bank official was quoted as saying that
2009 would not be a good time for Poland to enter the ERM-2
currency grid, the waiting room for the euro.
                                
 Under its plan to join the euro in 2012, Poland would have
to enter the ERM-2 exchange rate regime in the first half of
2009 [ID:nL8304020].But the zloty's recent volatility has led
the government to signal a possible delay.
                                
 The zloty traded 0.5 percent stronger at 4.448 per euro, 
the Romanian leu <EURRON=> was barely changed from the previous
close and the Hungarian forint <EURHUF=> firmed 0.9 percent.
                                
 Anti-communist protests in Moldova [ID:nL7566709] that have
complicated its already poor ties with Romania did little to
regional markets, dealers said.
                                
 "The market is watching developments there, but unless it
turns much worse, it will not have any impact," one dealer in
Bucharest said.
                                
 Fitch Ratings said it was unlikely that Moldovan social
unrest will impact the region, but threatened it could hurt the
country's "B-" rating [ID:nL8516433].
                                
 In debt markets, Polish bonds got a lift from a well-bid
tender, where the finance ministry sold 1.82 billion zlotys in
10-year bonds, more than the offered. Later the ministry sold
0.3 billion zlotys of the papers at a top-up tender.
                                
 Hungary continued to buy back its bonds at a weekly auction
to help its bond market which remains almost frozen.
[ID:nBUD002890]
                                
 "The (state debt agency) AKK has already bought back almost
one billion euros worth of bonds," one trader said.
                                
 "The market is deeply distorted, this extent of state
intervention is unique in the region... If there are no rules,
it's difficult to make predictions (about yields)."
----------------------MARKET SNAPSHOT-------------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2009 
Czech crown      <EURCZK=>  26.55    26.539  -0.04%    +0.76%
Polish zloty     <EURPLN=>   4.448    4.469  +0.47%    -7.49%
Hungarian forint <EURHUF=> 293.68   296.42   +0.93%   -10.26%
Croatian kuna    <EURHRK=>   7.395    7.421  +0.35%    -0.41%
Romanian leu     <EURRON=>   4.164    4.165  +0.02%    -3.59%
Serbian dinar    <EURRSD=>  93.167   92.87   -0.32%    -3.96%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond   CZ2YT=RR    -15 basis points to  193bps over bmk*
4-yr T-bond   CZ4YT=RR    -15 basis points to  +225bps over bmk*
8-yr T-bond   CZ8YT=RR    -9 basis points to  +296bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond   PL2YT=RR    -3 basis points to  +393bps over bmk*
5-yr T-bond   PL5YT=RR    -8 basis points to  +343bps over bmk*
10-yr T-bond PL10YT=RR    -13 basis points to  +291bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond   HU3YT=RR    -38 basis points to  +896bps over bmk*
5-yr T-bond   HU5YT=RR    -54 basis points to  +822bps over bmk*
10-yr T-bond   HU10YT=RR  -11 basis points to  +698bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1844 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.
 (Reporting by Reuters bureaus, writing by Balazs
Koranyi/Gergely Szakacs/Marius Zaharia; Editing by Victoria
Main)