* China stocks recovery buoys markets
* Sri Lankan rupee hits record low
* Oil recovery helps Russian rouble
By Susan Mathew
Nov 21 (Reuters) - Emerging markets steadied on Wednesday, with shares flat after their worst day in more than a week, while Russia's rouble and South Africa's rand led a rebound in currencies.
A recovery in mainland China and Hong Kong from more than 2 percent declines on Tuesday helped the MSCI index of EM stocks to rise marginally.
South African blue chips gained half a percent and Turkey's BIST index inched higher, adding to the gains.
This week's shock to global markets has stemmed chiefly from the United States, where concerns over the big technology companies which have led a decade-long rally drove the tech-heavy Nasdaq index to a 7-month low on Tuesday.
Stephen Innes, head of Asia-Pacific trading at Oanda said that while two days of falls on Wall Street had administered a shock to markets worldwide, there was little sign so far of a lasting effect.
"Risk sentiment has stabilised ... at least for the time being," he said. "Local investors are viewing last night's market meltdown as a broader U.S. equity correction on the back of early warning signals from the Federal Reserve Board, who are advising the US economy could struggle in 2019."
Poor holiday forecasts from major U.S. retailers, added to Fed policymakers' softer comments in recent days, spurred Tuesday's losses while concern about fading iPhone sales continues to hurt Apple Inc.
Most other emerging Asian bourses, which include a number of major Apple suppliers and many companies dependent on exports to the United States, fell as investors jettisoned riskier assets in the developing world.
Washington's suggestion that China had failed to alter its "unfair" trade practices also had investors worrying about the chances of a positive outcome from a meeting between the leaders of the two countries later this month.
Most developing market currencies eked out gains against the dollar, which weakened as the euro gained traction on reports Italy may be open to reviewing its draft budget for 2019.
The Turkish lira firmed 0.3 percent, and South Africa's rand climbed 0.5 percent, while a rebound in oil from a 6 percent plunge overnight helped the rouble.
The Sri Lankan rupee plummeted to an all-time low against the dollar. This followed the first credit downgrade of Sri Lanka by Moody's since it started rating the country in 2010. The agency blamed a political crisis for aggravating already problematic finances.
The political situation also prompted the International Monetary Fund to delay discussions on its next loan tranche.
Hungary's forint firmed as some investors bet on the central bank heading towards monetary tightening in the face of significant upside surprises in economic growth and inflation.
Poland's zloty rose 0.2 percent after data on Tuesday showed robust industrial output.
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For RUSSIAN market report, see (Reporting by Susan Mathew and Agamoni Ghosh in Bengaluru; editing by David Stamp)