EMERGING MARKETS-Stocks slip as tech rout weighs; dollar rally pressures currencies

By Sudeshna Ghoshal and Ragini Mathur

Nov 12(Reuters) - Emerging market stocks fell on Thursday as Asian technology shares came under pressure, while currencies were mixed as the dollar continued to trade on the stronger side on expectations of further US rate hikes.

The dollar treaded water after touching a 19-month high against major peers.

Traders have increased bets on additional Federal Reserve tightening after hotter-than-expected October inflation data and a string of hawkish comments from policymakers who flagged persistent price pressures and kept the door open to a 50-basis-point increase.

Indonesia's rupiah slid to a record low against the dollar, while concerns over volatile oil prices linked to the Middle East conflict continued to weigh on local assets.

Sentiment was also hurt by MSCI's warning last month that Indonesia could risk losing its emerging-market classification.

Political uncertainty added to the pressure after Vice President Gibran submitted his resignation to parliament's upper house.

"We just don't see any catalyst at the moment that would help the market bounce from here," said Luca Bindelli, head of investment strategy at Lombard Odier. "A significant amount of selling may already be reflected in prices, but investors still need clarity on the government's response."

MSCI removed Indonesian energy group Barito Pacific BRPT.JK from its global standard index in its November review, while adding four Indian companies and increasing the weights of 11 others.

Indonesia's stock index .JKSE still rose 2.7%.

Technology stocks led regional losses after Nvidia's leadership crisis soured sentiment toward AI-linked shares, dragging South Korea's .KS11 and Taiwan's .TWII benchmarks down 0.6% and 2.6%, respectively.

MSCI's emerging-market equity index .MSCIEF fell 1.2%, while its currency index .MIEM00000CUS was little changed.

Turkey's central bank raised its end-2027 inflation forecast to 21% and its end-2028 forecast to 13.5% on Thursday. Governor Fatih Karahan said the bank would maintain a tight policy stance until prices stabilised.

The lira was nearly flat, while stocks rose 1.3%.

In emerging Europe, Romania's leu was little changed against the euro before a central-bank meeting later in the day, where policymakers are expected to leave interest rates unchanged.

Romania's annual consumer price inflation rose, broadly in line with expectations in October, driven by a weaker leu and higher energy prices.

Political instability drove the Romanian leu to a record low against the euro in October.

Poland's equity benchmark .WIG rose 1.2% after a market holiday on Wednesday, while the zloty gained 0.2% against the euro.

Elsewhere, Sri Lankan President Anura Kumara Dissanayake said the country had enough liquidity to repay $2.9 billion of debt due in 2027 and $3.5 billion due in 2028, as he presented the island nation's budget for next year.

The Colombo stock index .CSE gained 0.7%, while the Sri Lankan rupee was little changed.

HIGHLIGHTS:

** Chinese AI firms rush to secure Nvidia chip capacity as spy scandal stirs fear of US curbs

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