* China shares close higher on Huawei relief
* India shares fall after hitting record highs
* Turkey’s lira down as investors weigh forex move
By Susan Mathew
May 21 (Reuters) - Emerging market shares on Tuesday gave up early gains logged on some relief on the Sino-U.S trade front, while developing world currencies also weakened on fears the protracted trade war may have already begun to impact Asian economies.
Currencies in the developing world fell across the board as poor economic growth data from Singapore and Thailand dented sentiment and boosted appetite for the dollar.
MSCI’s index of emerging market shares gave up gains of up to 0.6% to trade flat, even as mainland China shares - index-heavyweights - closed more than 1% higher after Washington temporarily eased trade restrictions imposed last week on China’s Huawei.
The trade relief gave a fillip to stocks of other trade reliant economies such as South Korea and Taiwan as well as to commodity giant South Africa’s blue-chips index , but some others fell.
Shares in Turkey fell 0.8% and the lira slipped 0.6% after the country’s banking watchdog imposed a settlement delay for FX purchases by individuals of more than $100,000.
“Not a particularly encouraging sign - people will worry that this is beginning down the road towards capital controls,” said Timothy Ash, head of emerging market research at Blue Bay Asset Management.
Indian shares turned to losses after scaling all-time highs earlier in the session on election optimism. Tata Motors was the worst performer after it provided a disappointing outlook, taking the broader indexes lower after three strong sessions.
The Indian rupee fell 0.26% to 69.757 per dollar after Monday’s 1% rise posted on exit polls suggesting Prime Minister Narendra Modi could retain power.
Analysts at DBS Group Research warn the rupee will weaken past 70 again because the next government formed will need to get fiscal consolidation back on track and rely on monetary policy to support growth.
Among emerging European currencies, Hungary’s forint fell 0.2% to a more than eight-month low ahead of a central bank meeting next week when it is unlikely to tighten policy despite a rise in inflation.
The Polish zloty was flat. Poland’s ruling party faces the risk of a defeat from the united opposition in European Parliament elections at the weekend.
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For RUSSIAN market report, see (Reporting by Susan Mathew in Bengaluru and Behiye Selin Taner in Istanbul; Editing by Mark Potter)