EMERGING MARKETS-Stocks, FX snap two-day rally, oil-sensitive currencies slip

* Oil-sensitive currencies pressured ahead of OPEC+ meet

* Indian rupee nears record low

* Euro zone currencies drop as EU fails to agree on virus response

April 8 (Reuters) - A two-day rally in developing world markets ran out of steam on Wednesday as concerns over the coronavirus outbreak persisted, with anticipation ahead of a key OPEC+ meeting adding to uncertainty.

Risk assets had rallied this week on hopes that the coronavirus outbreak was beginning to peak in its European and U.S. epicentres.

But with its death toll steadily rising and deep economic cracks becoming increasingly apparent, investors dialled down their optimism.

The MSCI’s index of emerging market stocks slipped about 0.6% after rising some 5.6% over the past two sessions. The currencies index eased 0.2% for the day, having added about 0.8% in the first two days of the week.

“A lot of good news has been built into asset markets this week on the most tenuous signs that the outbreak is peaking,” Jeffrey Halley, senior market analyst for Asia Pacific at OANDA, wrote in a note.

“Readers should not mistake a bear market rally for the start of a v-shaped recovery. The best we can hope for is a U, with a W in a close second place.”

Volatility in oil prices ahead of a meeting between OPEC members and allies that is likely to result in additional production curbs also kept emerging markets on their toes, given their dependence on oil trade.

Oil price-sensitive currencies such as the Russian rouble and the Indian rupee fell on the day, with the rupee nearing a record low to the dollar.

Further souring sentiment, European ministers failed to agree on more support for their pandemic-hit economies. With talks now suspended until Thursday, the discussions underscored deep rifts in the bloc over its response to the outbreak.

The Hungarian florin, Czech koruna and Polish zloty all retreated versus the dollar and the euro.

The Turkish lira eased 0.4% to the dollar, while the country’s stocks inched up slightly.

Chinese stocks ended lower, while the yuan also fell after China reported that new coronavirus cases doubled on Wednesday from a day earlier, and as new asymptomatic infections more than quadrupled.

The U.S. dollar also saw some safe-haven demand on the day, indicating that anxiety over the virus remained the focus of markets.

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

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