CORRECTED - Emerging Markets-Stocks at 10-week high but Poland down

                                
 (corrects headline to "10-week high" from "10-year high")
                                
 By Sebastian Tong
                                
 LONDON, April 23 (Reuters) - Emerging equities rose to a
10-week high on Wednesday in line with global markets, but Polish
stocks weakened after the government unveiled an ambitious $14
billion privatisation drive.
                                
 Inflation worries, sharpened by strong energy and food
prices, helped emerging European currencies to hold their ground
against a resurgent euro.
                                
 Emerging stocks <.MSCIEF> edged up 0.45 percent to 1195.08
at 1024 GMT, taking their cue from global stocks, which remain
near three-month highs on near-record oil prices and
better-than-expected first-quarter corporate results.
                                
 Polish stocks <.WIG20>, however, slipped 0.89 percent to
2876.28 on fears that the local share market would see a deluge
of new equity due to the government's plan to sell stakes in 740
state-controlled companies over the next four years.
                                
 (For details please double click on [nL22146255])
                                
 "The privatisation plan is more ambitious in scope than
expected and the process could occur faster than thought. This
increases the risk of a significant stock overhang," said Thomas
Farthofer, an Eastern Europe-focused fund manager for Griffin
Capital Management based in Gibraltar. 
                                
 Benchmark sovereign debt spreads <11EMJ> tightened two basis
points to 270 bps over U.S. Treasuries -- an indication that
improved investor sentiment also appears to be enticing some
sovereign issuers back to the market.
                                
 Noting that Brazil, Indonesia, Lebanon and the Philippines
are among the latest names heard to be preparing bond issues,
Commerzbank strategist Luis Costa estimates that there is over
$30 billion worth of hard-currency denominated emerging market
debt to hit the market before the year-end.
                                
 "The prospects of significant volume hitting the markets
will likely create some oversupply pressure ... but bear in mind
investors are now in a much better technical position to absorb
the potential $30-40 billion extra coming to the markets," he
said in a report.
                                
 
                                
 INTEREST RATES EXPECTATIONS
                                
 Even though the euro hovered near its all-time high against
the dollar <EUR=> set in the previous session, expectations of
higher interest rates are supporting many local currencies.
                                
 South Africa's rand <ZAR=> nudged 0.15 percent higher
against the dollar after data showed March inflation at a
five-year high. [nL23639093]
                                
 Inflation remains a big worry for emerging European
economies, many of which have an eye to joining the euro.
                                
 The Polish zloty <EURPLN=>, which remains near seven-year
highs, weakened 0.06 percent against the euro after
softer-than-expected retail sales data led some monetary
policymakers to question the bias for further interest rate
increases. [nL22847213]
                                
 "A series of weaker-than-expected data are likely to 'tilt
the scales' towards a no-hike decision this month. Having said
this, we expect rates to be raised by approximately 50 bps this
year. However, we also think that the stronger zloty will pave
the way for rate cuts next year," said Citi analyst Piotr Kalisz
in a research note.
                                
 The International Monetary Fund (IMF) weighed in, saying
Poland's monetary tightening cycle could be at an end.
[nL23917325]
                                
 The IMF also said the global slowdown would not hamper the
appreciation in real terms of the currencies of Poland, Hungary,
Slovakia and the Czech Republic due to the euro zone convergence
effect. [nPRG000768]
                                
 The Baltic states would see a soft landing due to the global
economic slowdown but it warned of a risk of a harsher outcome
there and in Romania and Bulgaria. [nL23814297]
  (Reporting by Sebastian Tong; editing by David Stamp)