EMERGING MARKETS-Shares hit new year high, currencies off peaks
* Emerging shares hit new 2009 high
* Russian rouble advances to new 2009 high
* Hungary's forint backs off after hitting nine-month highs
LONDON, Oct 20 (Reuters) - Emerging shares rose on Tuesday in tandem with their global peers to hit new 2009 highs boosted by robust corporate earnings and resurgent commodity prices, while Russia's rouble scaled fresh peaks against its currency basket even as the dollar slid to a 14-month low.
Several emerging currencies backed off from recent multi-month gains, including Hungary's forint, which eased after rising to nine-month highs versus the euro EURHUF=.
Helping to set the buoyant market mood were forecast-busting quarterly earnings from computing giant Apple Inc (AAPL.O) whose record sales numbers for its iPhones and iMacs suggested the return of U.S. consumption. [ID:nN19395089]
The dollar's weakness .DXY is also driving investors to higher-yielding emerging markets, where the pace of economic recovery is quickening.
The magnitude of investment flows into Brazil prompted the country to unveil on Monday plans for a capital inflows tax. [ID:nN19264977]
Fellow emerging giant Russia said an exit from the recession was in sight while a Chinese vice-premier said China's economy was growing faster with every month. [ID:nPEK195317] [ID:nLK281969]
The benchmark emerging equities index .MSCIEF firmed 0.3 percent to 980.16 by 1045 GMT, its highest level since August 2008, while emerging sovereign debt spreads 11EMJ were flat to trade 302 bps over U.S. Treasuries.
"Emerging markets have been very strong for the last few days, it would take quite a bit of a negative event to break or reverse that trend," said Beat Siegenthaler, chief strategist emerging markets at TD Securities.
"The news from Brazil...implies the government is becoming increasingly nervous about currency strength," TD Securities' Siegenthaler said.
CURRENCIES OFF PEAKS
Polish shares .WIG20 advanced to a new 12-month high while Israeli equities .TA25 continued to hover at their highest levels in 15 months.
Russian and South Africa .JTOPI shares stayed aloft at 13-month peaks, buoyed by a commodities rally which saw oil CLc1 peeking above $80 a barrel and gold rising close to last week's record highs XAU=.
Russia's central bank allowed the rouble RUS=MCX to climb to a new 2009 high against its dollar-euro basket, a move that analysts said confirmed Moscow's intention to move towards a free floating currency. [ID:nLK333254]
Most emerging currencies, however, were off recent highs.
The Israeli shekel ILS= backed off from 10-month peaks versus the dollar it reached on Monday, when its strength was said to have sparked intervention by the country's central bank. [ID:nLJ81201]
Poland's zloty softened a touch to the euro EURPLN= after an over one-percent gain in the previous day. A Polish monetary policymaker was quoted in a newspaper on Tuesday arguing that the country's interest rate should not be raised for the next six to seven months.
The policymaker is one of the nine of the ten members in the Polish central bank's Monetary Policy Council to be replaced early next year. [ID:nLK292958]
Hungary's forint EURHUF= also eased after touching a nine-month high against the euro earlier in the day on its central bank head's comments that the scope for further rate cuts was limited. [ID:nLJ68323]
Meanwhile, Iceland's parliament is mulling an amended bill to repay Britain and the Netherlands more than $5 billion in deposits lost in the island state's financial meltdown. [ID:nLJ220595]
The passing of the bill would pave the way for a release of a $10 billion aid package led by the IMF. (Additional reporting by Carolyn Cohn; Editing by Andy Bruce)
