* Emerging stocks bounce 1 pct, debt spreads tighten
* Forint hits fresh one-year low vs euro
* Zloty close to 26-month low vs euro, leu near 2011 low
* Rouble hits 8-mth low against dollar
By Carolyn Cohn
LONDON, Sept 15 (Reuters) - Emerging stocks bounced 1 percent on Thursday, recovering some ground from 14-month lows as euro zone policymakers declared their support for Greece, though the forint was hurt by recent Swiss franc loan repayment proposals.
French President Nicolas Sarkozy and German Chancellor Angela Merkel said in a joint statement on Wednesday they were determined to keep Greece in the euro zone.
Greek debt insurance costs reflect a high probability of restructuring or default of the country’s debt, and further damage to peripheral euro zone economies is likely to hit trading partners in central and eastern Europe in particular.
“The focus remains on Europe. The narrative is so eurocentric at the moment as Europe is the epicentre of global risk aversion,” said Paul Hollingworth, head of research at BB Securities.
“Investors are watching how peripheral bond markets are performing, which is a distraction from specific issues and challenges in emerging markets.”
The MSCI emerging equities index recovered some ground from 14-month lows set on Wednesday, rising 1 percent, and the Thomson Reuters emerging Europe index gained 0.56 percent.
Emerging sovereign debt spreads tightened 5 basis points to 359 bps over U.S. Treasuries, after stretching in the previous session to their widest levels in two years.
Emerging market debt has until recently been an outperforming asset class.
South African state-owned Transnet said this week it may delay a planned global bond until next year.
However, Serbia is holding an investor roadshow for a possible debut dollar issue totalling $700 million, according to IFR, a Thomson Reuters news and markets information service.
The forint fell 0.4 percent to a fresh one-year low against the euro on continued concern about government plans to allow Swiss franc loanholders to repay their loans at a favourable rate, a blow for Hungarian banks.
“Households’ increasing utility costs...will intensify in the winter, and together with a weak labour market and a still-strong Swiss franc, we see the non-performing loan ratio at around 12-13 percent in the next 6-12 months,” said ING analysts in a client note.
The zloty hovered close to the previous session’s 26-month low against the euro, though the Romanian leu edged up from the year’s low against the euro hit on Wednesday.
The rouble fell across the board, hitting an eight-month low against the dollar, on foreign exchange purchases on expectations the central bank will widen the euro-dollar basket’s trading band next month.
Russia’s central bank defied expectations of no policy change on Wednesday by opting to narrow the spread between its lending and deposit rates, seeking to strengthen its influence over market interest rates.
Ukraine’s five-year credit default swaps were quoted at 628 bps, according to Markit, their widest in 14 months, on concerns about a delay in IMF payments.
“Recent budgetary developments in Ukraine have led to a decreasing probability of IMF approval for upcoming and delayed disbursements and this has been seen in the widening risk premium for Ukraine in recent days,” said BNP Paribas analysts in a client note. (Additional reporting by Sujata Rao and Sebastian Tong; editing by Anna Willard)