* Rouble down 0.7%
* Russian stocks lead EMEA gains
* Hungarian forint flat, stocks lose on weak industrial data
Oct 6 (Reuters) - Developing market currencies in EMEA retreated on Tuesday, while stocks rose, tracking their Asian peers, amid some optimism after U.S. President Donald Trump left a hospital where he was being treated for COVID-19.
A strong overnight session on Wall Street also whetted appetite for equities, with markets anticipating progress in a new U.S. stimulus bill.
The MSCI’s index of emerging market stocks rose 0.6% to a more than two-week high, with most support coming from major Asian markets.
But gains were limited, as a surge in global coronavirus cases raised concern over a fresh round of lockdown measures.
“Encouraging news is likely to continue supporting equities and the broader market sentiment. However, we are still reluctant to call for a long-lasting recovery ... Coronavirus infections continue to rise at a fast pace,” Charalambos Pissouros, senior market analyst at JFD Group, wrote in a note.
The Russian rouble led losses in EMEA, as spiking coronavirus cases in the country offset a potential boost to the currency from higher oil prices.
Geopolitical risks, including the prospect of more sanctions against Moscow, have plagued the rouble in recent weeks: turmoil in neighbouring Belarus, the suspected poisoning of Kremlin critic Alexei Navalny and a military conflict in the South Caucasus.
The pressure on the currency has prompted central bank intervention to support the exchange rate, a move that could help the currency going into October.
Russian stocks led gains among their EMEA peers, as oil and gas firms benefited from better crude prices.
South Africa’s rand fell about 0.4% after it cut short a five-day winning streak on Monday. Stocks in the country rose slightly.
The Hungarian forint was flat after data showed the country’s industrial output fell by an annual 2.1% in August.
Hungarian stocks fell 0.3%. Energy group MOL dropped 1.8% after about 200 workers were infected with the coronavirus at one of its plants. For GRAPHIC on emerging market FX performance in 2020, see tmsnrt.rs/2egbfVh For GRAPHIC on MSCI emerging index performance in 2020, see tmsnrt.rs/2OusNdX
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