By Sujata Rao

LONDON, Aug 2 (Reuters) - Emerging stocks were on track on

Friday to end a three-week winning streak, hit by growing

expectations of a Fed liquidity pullback in coming months, while

the rand and rupee led currency falls versus the dollar.

The main emerging equity index fell 0.2 percent

and has lost almost 1 percent this week after rising for three

consecutive weeks.

Moves came in thin-volume trade ahead of U.S. jobs data that

could confirm market expectations for the U.S. Federal Reserve

to start reducing its monthly bond-buying in September.

All the data so far shows the world's largest economy is in

recovery, inducing investors to pull cash back out of emerging

markets where growth is slowing, especially in the big economies

such as China and India.

On currency markets, the Indian rupee fell 0.7 percent to

the dollar, shrugging off central bank stabilisation

measures as along with most other Asian currencies it came under

pressure from Thursday's upbeat U.S. data.

The rupee and Indian stocks have lost around 3 percent to

the dollar this week.

The rand meanwhile dropped almost 1 percent to three-week

lows, breaching the 10-per-dollar mark, while the

Turkish lira was marginally weaker at two-week lows.

In central Europe, the Hungarian forint was at six-week lows

after breaching 300-per-euro this week for the first

time since end-June, driven by worries over the government's

plans to tackle household debt.

Citi analysts said they believed emerging markets are in the

middle of a credit re-pricing. 'It is not a mere re-assessment

of interest rate levels at the core. Capital flows will continue

to be challenged.'

Investors continued to pull cash from emerging markets.

While equity fund flows were flat, emerging debt funds lost $714

million in the week ending July 31, 2013, banks said citing EPFR

Global which releases data to clients late on Thursday.

The stress is being felt most by economies such as India and

Turkey with big current account deficits.

'The underperformance in rand, lira and rupee (currency and

bonds) should not come as a surprise to anybody ... we believe

there will be renewed search for currency hedging as the usual

carry currencies meet further pressure.'

(Editing by David Holmes)

((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 952.37 -1.78 -0.19 -9.75 Czech Rep 941.07 +5.65 +0.60 -9.40 Poland 2389.94 +38.80 +1.65 -7.47 Hungary 18406.16 +25.28 +0.14 +1.28 Romania 5498.02 +10.76 +0.20 +6.77 Russia 1324.45 -7.26 -0.55 -15.97 South Africa 37559.09 +85.15 +0.23 +7.94 Turkey 73193.07 -208.70 -0.28 -6.41 China 2029.42 +0.35 +0.02 -10.56 India 19172.08 -145.11 -0.75 -1.31 Currencies Latest Prev Local Local close currency currency % change % change in 2013 Czech Rep 25)

COPYRIGHT

Copyright Thomson Reuters 2013. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.