LONDON, Aug 1 (Reuters) - Emerging stocks rose on Thursday,

cheered by glimmers of recovery in Europe and shrugging off

fresh signs of economic slowdown in many big developing

countries.

While battered emerging currencies such as the rand, rupee

and rupiah eased further, most other assets were buoyed by the

U.S. Federal Reserve's dovish post-meeting statement that pushed

the dollar to six-week lows against a currency basket.

The European Central Bank and Bank of England are also

likely to signal commitment to loose policy later in the day.

Emerging assets performed slightly better despite poor

factory data in India, South Korea, Turkey and Russia.

'The Fed tried not to disturb markets and it succeeded, so a

bit of risk appetite came back. I think the ECB will do the same

today,' said Lars Christensen, chief emerging markets analyst at

Danske Bank in Copenhagen.

'The Chinese numbers were better-than-expected and clearly

the euro zone is recovering so the backdrop today is positive

for emerging markets.'

China's factory activity was slightly stronger than expected

in July, although a private survey focused on smaller firms

suggested manufacturing remained under pressure in an economy

that has slowed in nine of the past 10 quarters.

Emerging equities rose 0.3 percent, inching off

two-week highs. Chinese shares rose 2 percent to their

highest in over a week.

In Europe too, German manufacturing posted the fastest

expansion in 1-1/2 years, France appeared to be

shaking off recession and Italy expanded for the first time in

two years.

The news from emerging markets was mixed however.

A stronger outlook in Poland and the Czech Republic -

reliant on exports to Germany - contrasted with Russia, whose

reading was the lowest since December 2009, and Turkey

contracting for the first time in a year.

Polish and Czech stocks jumped almost 1 percent . Turkish and Russian bourses also shook off the domestic

gloom and rose more than 1 percent on signs of global recovery

Hungarian stocks however fell 0.6 percent, hit by a

fall in July PMIs and government comments that households' hard

currency loans could be converted into forints, if necessary

without banks' agreement

Shares in top lender OTP lost 1.6 percent, adding

to last month's 5 percent fall.

On currencies, the zloty rose almost half percent

while the Czech crown firmed 0.10 percent, just off the previous

day's 5-1/2 week high before a central bank meeting.

The robust PMI reading provides an incentive to avoid easing

monetary policy further to weaken the crown, analysts said.

'Today's number certainly plays in favour of stable monetary

conditions, no change in rates and no interventions,' said David

Marek, chief economist at Patria Finance in Prague.

But in Russia, the central bank moved the rouble's exchange

rate band by 10 kopecks against the euro-dollar basket and many

reckon the shockingly weak manufacturing data provides an

argument for a weaker currency.

Earlier in Asia, the beleaguered Indian rupee fell 0.4

percent, trading very close to record lows while the Indonesian

rupiah was at a four-year trough

(Reporting by Sujata Rao; Editing by Ruth Pitchford)

((sujata.rao@thomsonreuters.com)(+44 20 7542 6176

sujata.rao.thomsonreuters.com@reuters.net))

Keywords: MARKETS EMERGING

( Emerging Markets Prices from Reuters Equities Latest Net Chg % Chg % Chg on year Morgan Stanley Emrg Mkt Indx 951.83 +4.28 +0.45 -9.80 Czech Rep 931.47 +12.06 +1.31 -10.32 Poland 2349.78 +23.19 +1.00 -9.03 Hungary 18448.89 -103.45 -0.56 +1.52 Romania 5432.49 +28.89 +0.53 +5.49 Russia 1330.69 +17.31 +1.32 -15.57 South Africa 37136.03 +292.98 +0.80 +6.73 Turkey 74191.44 +813.98 +1.11 -5.14 China 2029.07 +35.27 +1.77 -10.58 India 19326.09 -19.61 -0.10 -0.52 Currencies Latest Prev Local Local close currency currency % change % change )

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