EMERGING MARKETS-Stocks rally cools, pressure builds on Turkish bonds
By Claire Milhench
LONDON Feb 17 (Reuters) - Eastern Europe was helping to support emerging market stocks on Wednesday, as heightened tension between Ankara and Moscow over Syria pushed Turkish bond yields to four-and-half-month highs.
MSCI's 23-emerging country equity index was back to almost flat by 1000 GMT as a 1.8 percent jump in its eastern Europe markets helped offset falls in Nigeria and some parts of Asia overnight.
Chinese mainland shares ended up around one percent at three-week highs after the government unveiled plans to invest some 400 billion yuan in infrastructure.
But Hong Kong closed down over one percent and some of the Gulf bourses were in the red as excitement about Tuesday's deal to freeze oil production faded.
"At the moment the market is just trying to figure what the next step will be," said Cristian Maggio, head of emerging markets strategy at T.D. Securities.
"It is still too early to say whether it is a stable return of risk appetite, I would be more inclined to say no rather than yes."
Emerging market stocks have jumped almost 3 percent since the start of the week and over 6 percent in the last month, but worries about China and global growth generally are still being amplified by political tensions.
The yield on Turkey's sovereign dollar bonds rose 10 basis points (bps) to 351 bps on Wednesday, the highest since September 2015, over fears the country is being dragged deeper into the war in neighbouring Syria. Continuación...