* Emerging stocks up 1 pct, debt spreads unchanged
* Czech crown hits 4-week high vs euro on stable rates
* Romania IMF tranche may be delayed, muted asset reaction
By Carolyn Cohn
LONDON, Nov 6 (Reuters) - Emerging stocks recovered some
ground on Friday ahead of key U.S. data and a meeting of G20
finance ministers, although the Czech crown hit four-week highs
on the previous session's steady-rates decision.
U.S. Oct employment data are due on Friday after upbeat data
in the previous session, and the Federal Reserve and European
Central Bank kept rates unchanged this week.
"Despite the increasing volatility that we've seen in the
markets, the overall tone is supportive, particularly after
major central banks such as the Fed signalled that they are
keeping an accommodative stance," said Murat Toprak, emerging
markets strategist at Societe Generale."
Benchmark emerging equities <.MSCIEF> rose more than 1
percent. The index has this week wiped out half the previous
week's losses, but risky assets show increasing volatility.
Markets are trading erratically as investors look to
different signals for direction -- U.S. corporate earnings, U.S.
data, monetary policy decisions and indications as to when
governments may lift economic stimulus.
G20 finance ministers and central bankers start a two-day
meeting in St Andrews, Scotland on Friday.
G20 policymakers are agreed that it is too early to pull the
plug on economic life-support packages as the global recovery is
still fragile, British finance minister Alistair Darling told
Reuters in an interview. []
Brazil will push G20 policymakers on how to manage excess
global foreign exchange reserves and should address the
disparity between pegged and floating currencies, Brazil's
finance minister Guido Mantega told Reuters in an interview on
Thursday. []
Some emerging currencies, such as the Brazilian real <BRL=>,
have risen sharply this year, raising problems for the
economies' export markets.
Emerging European currencies were generally firmer on
Friday.
The Czech crown rallied to four-week highs against the euro
<EURCZK=> after the central bank narrowly voted against cutting
interest rates this week, leaving them at 1.25 percent.
The Serbian dinar recovered some ground after hitting its
lowest against the euro <EURRSD=> in nearly six months on
Thursday, following a 100 basis point cut in Serbian rates to 10
percent.
The International Monetary Fund is expected to delay a
1.5-billion euro tranche of rescue aid to Romania due next
month, central bank governor Mugur Isarescu said on Friday.
The cost of insuring Romania's debt against default in the
credit default swaps (CDS) market has been rising sharply on
concern about delays in disbursement of a 20 billion euro
international aid package to the country, due to political
instability.
"The current uncertainties translate into depreciation
pressures and high interest rates that make this year's deficit
financing more costly and prolong the freeze of the lending
market to the real economy," said analysts at Unicredit in a
client note.
However, Romania's five-year CDS were little changed early
on Friday at 280.6 basis points, according to CDS monitor CMA
DataVision. Romania's leu was also steady against the euro
<EURRON=>.
Emerging sovereign debt spreads were unchanged at 316 bps
over U.S. Treasuries <11EMJ>.
Russia briefed around 50 market players in London this week
ahead of a planned 2010 Eurobond, for an issue that could
include a euro tranche. []
(Additional reporting by Sebastian Tong; Editing by Victoria
Main)
