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EMERGING MARKETS-Rouble, rand lead EMEA FX gains, while stocks also bounce

* South African rand touches over 1-mth high

* Rouble bounces back from over 7-mth low

* Biden election win could hurt dollar- analyst

Nov 3 (Reuters) - The Russian rouble and the South African rand led gains across emerging markets in Europe, Middle East and Africa on Tuesday as they bounced back from recent weakness, while Turkey’s lira plumbed new lows as inflation increased.

Stocks in the region also rose as they recovered from steep losses in the prior week. The MSCI’s index of emerging market equities added nearly 1%, bolstered by heavyweight Chinese stocks.

Russian equities were the best performers in EMEA for the day after shedding about 4.5% last week.

Uncertainty over the U.S. elections, as well as a resurgence in global coronavirus cases had seen widespread selling across risk-driven assets in recent weeks. Markets were also watching for a post-election coronavirus stimulus package from the United States, the size of which could differ based on the outcome.

Turkey’s lira fell as inflation in the country rose in October, staying well above a conservative central bank target. The reading raised the case for tighter monetary policy in the country.

Temporary measures from the central bank to curb volatility in foreign exchange markets did little to stop the lira’s fall.

Weakness in the dollar in anticipation of the election helped most other emerging market currencies, although caution was at the forefront.

“A Joe Biden victory may result in a slide in the U.S. dollar. Both candidates are expected to push for more infrastructure spending, but Biden’s agenda is looser, which combined with an extra-accommodative Fed may result in some dollar selling,” Charalambos Pissouros, senior market analyst at JFD Group wrote in a note.

“Whoever gets elected, a failure of his party to take full control of the Congress may result in a more modest market reaction, as he may not be able to push through with his agenda.”

Russia’s rouble rose 0.8% to the dollar, recovering from a seven-month low hit on election jitters and weak oil prices. The possibility of a Biden victory had also weighed on the rouble, as it could result in more U.S. sanctions on Moscow.

South Africa’s rand rose 0.7% to a more than one-month high to the dollar, while central European currencies such as the Hungarian forint and the Czech crown rose slightly to the euro.

For GRAPHIC on emerging market FX performance in 2020, see For GRAPHIC on MSCI emerging index performance in 2020, see

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see (Reporting by Ambar Warrick in Bengaluru; Editing by Angus MacSwan)