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EMERGING MARKETS-Stocks set for best week in a month; strong dollar weighs on FX


Market backdrop still conducive to risk-taking in EM - Barclays
Lira, rand, Mexican peso all fall more than 1%
Fed meeting, Sino-U.S. talks eyed next week
March 12 (Reuters) - Emerging markets currencies and stocks looked to end a volatile week on a sour note on Friday, with a dollar on the rise dousing risk appetite.
MSCI’s index of EM stocks fell 0.4% as a pick-up in U.S. bond yields pressured risk assets. Gains during Asian hours were erased with a 2.2% drop in Hong Kong shares leading declines.
On the week, however, the EM index was up about 1%, recovering after a brief fall into correction territory, as U.S. Treasury yields had pulled back after tepid U.S. inflation data. But it was well short of the rally seen in world stocks , which are up 2.6% so far. ....

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