EMERGING MARKETS-Stocks up on rising risk appetite

                                
 * Emerging assets up ahead of ECB meet; U.S. data cheers 
                                
 * Hungarian forint firms after debt auction
                                
 * Turkish lira flat against euro
                                
 
                                
 By Duncan Miriri
                                
 LONDON, Dec 2 (Reuters) - Emerging markets rose on Thursday
on rising risk appetite following upbeat U.S. jobs data and
manufacturing reports from developing economies this week.
                                
 Emerging equities <.MSCIEF> were 1.2 percent higher by 1220
GMT, building on strong gains in the previous session while
emerging sovereign debt <11EMJ> narrowed by 7 basis points to
trade 250 basis points over U.S. Treasuries.
                                
 Worries of contagion in the euro zone debt crisis had
weighed on sentiment but emerging stocks picked up on Wednesday
on robust factory production data from India and China.
                                
 That was echoed in emerging Europe where Czech, Polish and
Hungarian purchasing managers' surveys showed a broad recovery
on the back of strong German manufacturing activity.
[ID:nLDE6B00DD] 
                                
 Upbeat U.S. jobs data on Wednesday also raised hopes that
global economic recovery was on track and continued on Thursday
to underpin emerging markets where economic growth is expected
to keep outperforming developed markets. [ID:nN01127417]
                                
 "The economic figures we saw in the last few days have
helped the markets. Clearly we've had a selloff in the last
couple of weeks and that has cleared up positions, making entry
levels more attractive," said Tim Ash, head of research for
CEEMA at Royal Bank of Scotland.
                                
 Still, there had been no real solution to the euro zone's
debt problems, Ash said.
                                
 "But then the correction we've had in emerging markets felt
more like a technical short-term one," he said.

                                
 CURRENCIES JUMP
                                
 Most emerging currencies traded higher on renewed risk
appetite.
                                
 The Hungarian forint <EURHUF=> firmed 0.46 percent against
the euro after the government sold more debt than planned at an
auction. Yields however went up at that auction. [ID:nLDE6B113M]
                                
 South Africa's rand <ZAR=> gained 0.36 percent against the
dollar while the Kenyan shilling <KES=> strengthened by 0.56
percent against the dollar, shrugging off a 5-million-euro buy
order from the Kenyan central bank as rising risk appetite
prompted banks to dump long dollar positions.
                                
 The Turkish lira <TRY=>, which weakened to a 2-1/2 month low
on Tuesday, was flat against the dollar. 
                                
 Analysts said the lira could be affected by European Central
Bank President Jean-Claude Trichet's comments at a press
conference after the bank's policy meeting on Thursday when he
is likely to be asked about the euro zone debt crisis.
                                
 "Today Trichet comments will be the main driver to watch,"
Citi said in a research note.
 (Additional reporting by Sebastian Tong; Editing by Susan
Fenton)