Equities were helped by MSCI's overnight decision not to add Chinese shares to its emerging market indices, a move that could have led to the selling of equities elsewhere to make way for Chinese names, analysts said.
But regional markets are likely to remain on a roller-coaster in the coming days amid concerns about slower economic growth if British voters decide to quit the EU, a scenario known as "Brexit".
The zloty
But implied volatilities on the zloty
The crown
"This seems to be all about Brexit and players on the market found the crown again," one player said, adding that euro selling interest would prevent a further weakening.
The leu
The vote adds to worries over the budget and domestic demand, fuelled by tax cuts and wage hikes ahead of Romania's parliamentary elections late this year. The lower house has yet to vote on the issue.
The 2017 budget deficit may swell to 5 percent of economic output if the measure is passed, analysts at ING's Romanian unit said in a note.
"While we would still expect economic logic to prevail and talk of easing to be scaled down, we underscore that implementing such decisions would be materially negative for RON assets and Romania's macro fundamentals over the medium term," they added.
Worries about fiscal loosening and a growing burden on banks have also kept Polish assets under pressure since last year, boosting the risk of credit rating downgrades.
Poland's 10-year bond yield dropped 4 basis points to 3.26 percent after testing January highs, while Hungary's corresponding yield rose 4 basis points to 3.38 percent.
Budapest's main equities index <.BUX> led gains in the region, firming 1.7 percent, after hitting 3-month lows on Tuesday.
CEE SNAPSHO AT 1459 CET
MARKETS T
CURRENCIES
Latest Previous Daily Change
bid close chang in 2016
e
Czech
crown %
Hungary
forint 0 2%
Polish
zloty 6%
Romanian
leu %
Croatian
kuna %
Serbian
dinar 0 9%
Note: calculate previou close at 1800
daily d from s CET
change
STOCKS
Latest Previous Daily Change
close chang in 2016
e
Prague <.PX> 817.17 808.20 +1.1 -14.55%
1%
Budapest <.BUX> 26278.0 25831.00 +1.7 +9.86%
6 3%
Warsaw <.WIG20> 1771.73 1762.61 +0.5 -4.70%
2%
Buchares <.BETI> 6497.70 6422.45 +1.1 -7.23%
t 7%
Ljubljan <.SBITOP> 685.28 683.63 +0.2 -1.56%
a 4%
Zagreb <.CRBEX> 1687.38 1690.80 -0.20 -0.13%
%
Belgrade <.BELEX15 623.78 624.66 -0.14 -3.15%
> %
Sofia <.SOFIX> 454.19 445.92 +1.8 -1.46%
5%
BONDS
Yield Yield Sprea Daily
d
(bid) change vs change in
Bund
Czech spread
Republic
2-year
> bps
5-year
> bps
10-year
R> bps
Poland
2-year
> bps
5-year
> bps
10-year
R> bps
FORWARD RATE AGREEMENT
3x6 6x9 9x12 3M
interbank
Czech
Rep PRIBOR=>
Hungary
BUBOR=>
Poland
WIBOR=>
Note: are for
FRA ask
quotes prices
*********************************************************
***** (Additional reporting by Luiza Ilie in Bucharest/Jason Hovet in Prague; Editing by Gareth Jones)
By Sandor Peto and Bartosz Lada