EMERGING MARKETS-Fed hits stocks, Brazil assets gain on impeachment prospect
LONDON Dec 3 (Reuters) - Emerging market stocks extended losses on Thursday after the Federal Reserve chief reinforced the case for an interest rate hike while Brazilian assets abroad gained as lawmakers started impeachment proceedings against President Dilma Rousseff.
MSCI's broadest emerging market index slipped 0.4 percent in its second straight day in the red as bourses in Asia, South Africa, Russia and the Middle East all chalked up losses.
Currencies painted a more mixed picture, as Fed chair Janet Yellen said she was "looking forward" to raising rates, but European Central Bank chief Mario Draghi appeared set to announce more stimulus measures later on Thursday.
"It's quite impressive to see how EM has stomached Yellen's comments, and that's probably because of the expectation of support from the ECB later today," said UBS strategist Manik Narain.
The ECB is expected to deliver a cocktail of measures that could include a deposit rate cut and changes to its asset-buying programme.
An ECB move could be beneficial for central and eastern European assets. Poland's zloty extended the previous day's gain to rise 0.2 percent against the euro.
Turkey's lira and South Africa's rand rose 0.2 percent against the dollar to extend previous gains.
Yet the rouble fell 0.6 percent against the dollar to trade at its weakest level since mid-September as President Vladimir Putin warned that Russia should prepare for the possibility of prolonged low commodity prices and sanctions. Continuación...