EMERGING MARKETS-Stocks head to best day in two weeks; currencies gain as dollar falters

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China, HK stocks up on policy relief

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U.S. dollar weakens after overnight gains of 0.5%

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South Africa's rand jumps ahead of unemployment data

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Pakistan, IMF begin talks on $7 bln loan review

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EM stocks up 2.2%, FX gains 0.3%

By Bansari Mayur Kamdar

Nov 29 (Reuters) - Emerging market stocks on Tuesday were on track for their best daily performance in nearly two weeks, with Chinese stocks bouncing after regulators broadened equity financing channels for developers, easing fears of a debt crisis in the world's second-biggest economy.

The MSCI's index for emerging market stocks rose 2.2%, snapping its two day losing streak.

China's bluechip index jumped 3.1% as investors snapped up property and bank shares after a regulatory commission said it would allow China- and Hong Kong-listed Chinese developers to sell additional shares, lifting a six-year-old ban.

Emerging market currencies gained 0.3% as the U.S. dollar faltered against a basket of currencies after sharp overnight gains on mounting worries over China's COVID situation and rare protests over Beijing's lockdown measures.

"It's a risk on move," said Per Hammarlund, chief EM strategist at SEB.

"Given that the dollar has been acting as a haven asset lately, when investors feel more confident that we will see growth in China and EM currencies the dollar weakens and against pretty much all other currencies."

South Africa's rand rose 1.2% against a softer greenback, with focus on domestic unemployment figures due to be published later in the day.

The Turkish lira was muted against the dollar.

Turkey's foreign trade deficit surged 421.7% year-on-year to $7.87 billion in October, with imports climbing 31.4%, showed data from the Turkish Statistical Institute.

Most central and eastern European currencies edged lower in early trading against the euro, while the Polish zloty added 0.2%.

The Russian rouble hit its weakest point in nearly three weeks past 61 against the dollar, as the peak of a favourable tax payment period passed.

Elsewhere, Pakistan and the International Monetary Fund have begun talks online on a ninth review of a $7 billion loan programme, the Finance Ministry said on Monday, after a media outlet reported that the lender had asked the country to cut its expenses. For GRAPHIC on emerging market FX performance in 2022, see http://tmsnrt.rs/2egbfVh For GRAPHIC on MSCI emerging index performance in 2022, see https://tmsnrt.rs/2OusNdX

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