CEE MARKETS 2-Currencies mixed, stock gains lend support

                                
 * Stocks rise on technical rebound
                                
 * Zloty dips along with chances of April rate hike
                                
 * Forint just off 9-mth high versus zloty
                                
 
  (Updates prices, quote, details)
                                
 PRAGUE, March 17 (Reuters) - The Polish zloty inched down on
Thursday as expectations of an interest rate hike in April
dipped, but emerging European currencies found some support from
stronger equity markets even as Japan's nuclear crisis deepened.
                                
 European stocks <FTEU3> halted their recent slide in a
rebound that was seen as technical, as markets continued to fret
over Japan's struggles to cool an overheating nuclear power
plant following last week's earthquake and tsunami.
[ID:nL3E7EH00O]
                                
 The zloty <EURPLN=> dipped 0.2 percent to 4.087 to the euro
by 1037 GMT, nearing the psychologically important 4.10 level,
while the Czech crown <EURCZK=> lost 0.1 percent to 24.415.
                                
 The Romanian leu <EURRON=> was flat, and the Hungarian
forint <EURHUF=> inched down to 273.91 against the single
currency.
                                
 Stock markets in the region were mostly higher, led by a 0.7
percent rise for Warsaw <.WIG20>, although Bucharest bucked the
trend with 0.5 percent drop.
                                
 The zloty recovered some ground in the morning after
Monetary Policy Council member Adam Glapinski said a Polish
interest rate rise in April was still possible despite
lower-than-expected inflation and wage growth data.
[ID:nWSF010113]
                                
 But markets are starting to price out chances of a hike.
 Polish bonds also weakened on Thursday after gains in the
previous session, and "the prospect of a rapid recovery of the
zloty has deteriorated," Commerzbank said. 
                                
 
                                
 GLOBAL RISK OUTWEIGHS
                                
 In Romania, risk aversion outweighed news late on Wednesday
that the government had survived a fifth no-confidence vote in
less than a year, enabling it to push ahead with International
Monetary Fund-backed reforms. [ID:nLDE72F1IU]
                                
 "The slight depreciation has to do with risk aversion," said
a trader in Bucharest. "The result of the no confidence vote is
positive for the leu."
Hungarian markets were awaiting news from a government
roadshow this week in Europe and the United States, which is
expected to lead to a new dollar bond. [ID:nLDE72A0WF]
                                
 With the zloty having declined this year, the forint climbed
to a nine-month high against it this week <PLNHUF=R>.
                                
 The Hungarian currency has also found relief against the
Swiss franc <CHFHUF=> after a jump this week, easing some burden
on the country's foreign currency loan holders.
                                
 "The market is surprisingly strong, while the Swiss franc
and the yen have weakened a lot. But there is no real turnover
(in the bond market)," one fixed income trader said.
                                
 Hungarian bonds were a touch stronger.
                                
 
--------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2011 
Czech crown      <EURCZK=>   24.415   24.399  -0.07%   +2.4%
Polish zloty     <EURPLN=>    4.087    4.08   -0.17%   -3.16%
Hungarian forint <EURHUF=>  273.91   273.68   -0.08%   +1.49%
Croatian kuna    <EURHRK=>    7.373    7.373   0%      +0.09%
Romanian leu     <EURRON=>    4.178    4.178   0%      +1.32%
Serbian dinar    <EURRSD=>  102.79   102.59   -0.19%   +3.05%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond   CZ2YT=RR    -7 basis points to  21bps over bmk*
7-yr T-bond   CZ7YT=RR    -5 basis points to  +73bps over bmk*
10-yr T-bond   CZ9YT=RR   +1 basis points to  +79bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond   PL2YT=RR    -4 basis points to  +348bps over bmk*
5-yr T-bond   PL5YT=RR    -2 basis points to  +342bps over bmk*
10-yr T-bond PL10YT=RR    -2 basis points to  +315bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond   HU3YT=RR    -8 basis points to  +501bps over bmk*
5-yr T-bond   HU5YT=RR    -9 basis points to  +488bps over bmk*
10-yr T-bond   HU10YT=RR  -6 basis points to  +426bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1138 CET.
Currency percent change calculated from the daily domestic 
close at 1700 GMT.
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 (Reporting by Reuters bureaus, writing by Jason Hovet, editing
by Catherine Evans, John Stonestreet)